beat warren buffet's returns
This AI thing has me dusting off ideas that i was too lazy to ever code. Case in point, how to beat QQQ(nasdaq 100) but not by taking single stock risk.
I have had this in my head forever, and had Cursor(Elon just bought this company for $60B) code it for me. It took it all over 15 minutes to make this.
Here's the idea. Beat the indexes by buying them, but when the market is trending hot, borrow 100% of your equity and put it all back into QQQ. When the trend ends, sell. How do you know when the trend starts or ends, that is what it figures out. Here is the input screen.
4 Replies
1mo
What this shows is that over the past ten years, if you bought the QQQ and held it, and then doubled your position via margin when it went up 6% the previous month(this is value X) and covered your margin position when it takes 5% the previous, you earn a CAGR of just about 30%, putting you in the same leagues as George Soros, beating Buffet's lifetime return.
The program solves for X and Y to maximize your return.
It gets more complicated in terms of moving the timeframe but this is enough for the Lounge. Does this blow your mind?
Had to link the image....
(In response to this post by MrBayAreaHokie)
1mo
...but I've been very curious to see how AI disrupts the stock market, which has historically seemed to react significantly to human emotion. If buying and selling becomes largely driven by AI advice, I wonder what that means for the future of the market. I'm not remotely intelligent enough to make a prediction, but I will be watching with a lot of interest.
(In response to this post by MrBayAreaHokie)
1mo
is give you better models, a lot faster. I made that program in one evening, including QAing it. This would have taken a developer, a good one, a week at work of coding.
I think that's all it is...the machines read the compiled instructions, so it was only inevitable that they figured out how to code way faster than people. The markets are driven by greed and fear, same as ever.
(In response to this post by MP4VT2004)