Hi You,

This is the story of Alex Kim. A man whose research cracked the stock market.

Like me, Alex is passionate about artificial intelligence. Alex, a PhD student from the University of Chicago, wanted to see whether large language models (like ChatGPT) can be used to perform financial analysis. His results were shocking.

Watch the full video on YouTube

Alex shared his results in his paper Financial Statement Analysis with Large Language Models. The paper is over 50 pages long, and the above video summarizes his findings.

To study whether LLMs were effective at performing financial analysis, Alex compared it to 2 alternative approaches.

The naive approach took the change in EPS on one year, and predicted the change in EPS the following year be the exact same.

The analysts approach took the consensus rating of financial analysts on one year, and measured how accurate their predictions were the following year.

The LLM-approach took financial statements on a stock on one year, and asked the LLM to perform Chain of Thought prompting to predict the change in earnings the next year.

• Naive Approach: He found that the naive approach was 49% accurate in predicting the change in a stock's EPS.
• The Analyst Approach: He found that professional analysts were 53% accurate in predicting the change in a stock's EPS
• The LLM Approach: The LLM-approach was by far the most accurate, at over 60% accuracy using solely financial statement data. 

Just imagine what’s possible with more data – industry averages, backtesting, and more. AI is fundamentally transforming how we approach the markets, and you have the chance to be at the forefront of this revolution.

AI will change how people approach financial markets. Are you going to standby as this opportunity passes you by? Or are you going to take action?

Ready to take your trading game to the next level? With NexusTrade Premium, you’ll have access to cutting-edge AI tools like the ones used in Alex’s research. Refine your strategies, explore new opportunities, and gain an edge in today’s fast-moving markets.

Happy trading! 
Austin Starks

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