{"id":25738,"date":"2025-08-01T10:23:21","date_gmt":"2025-08-01T07:23:21","guid":{"rendered":"https:\/\/forklog.com\/en\/oklahoma-schoolboys-chatgpt-bot-outperforms-russell-2000\/"},"modified":"2025-08-01T10:23:21","modified_gmt":"2025-08-01T07:23:21","slug":"oklahoma-schoolboys-chatgpt-bot-outperforms-russell-2000","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/oklahoma-schoolboys-chatgpt-bot-outperforms-russell-2000\/","title":{"rendered":"Oklahoma Schoolboy’s ChatGPT Bot Outperforms Russell 2000"},"content":{"rendered":"

A schoolboy from rural Oklahoma entrusted ChatGPT with managing $100, achieving a return that significantly outpaced the market, reports Decrypt<\/a>.<\/p>\n

Nathan Smith’s experiment began four weeks ago with a simple idea: to give artificial intelligence full control over a portfolio of small-cap stocks and observe the outcome.<\/p>\n

The return was 23.8%, while during the same period, the Russell 2000 and XBI indices rose by 3.9% and 3.5%, respectively.<\/p>\n

\"Oklahoma
Comparison of returns. Data: Decrypt.<\/figcaption><\/figure>\n
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\u201cI constantly saw ads for AI stock pickers on YouTube, claiming \u2018our algorithm analyzes all stocks on the NYSE, etc.\u2019 I started digging and was surprised that no one had yet attempted to fully hand over portfolio management to a LLM<\/span>,\u201d Smith said.<\/p>\n<\/blockquote>\n

The task was simple: to assemble the strongest possible portfolio of American small-cap stocks (less than $300 million). The goal was to maximize returns from June 27 to July 27.<\/p>\n

The algorithm was given full autonomy.<\/p>\n

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\u201cThe AI literally manages everything. Position sizes, stop-losses, etc. \u2014 I don\u2019t interfere,\u201d Smith noted.<\/p>\n<\/blockquote>\n

He calculated the risk levels. The Sharpe Ratio<\/a> was 0.9413, indicating high risk, while the Sortino Ratio<\/a> was 2.0021, suggesting good growth potential with limited drawdowns.<\/p>\n

One of ChatGPT’s successful decisions was purchasing CADL, which contributed about 50% of the portfolio’s total profit.<\/p>\n

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\u201cIt sold CADL without hesitation. I think the AI correctly understood that in microcaps, profits can vanish in an instant. Not every hedge fund would dare to take such a step,\u201d Smith said.<\/p>\n<\/blockquote>\n

The young man created five main functions:<\/p>\n