Generative AI (GPT) + quant finance for wealth management

Abstract

This project develops a comprehensive stock trading pipeline that leverages advanced AI and quantitative models for both intraday trading and long-term portfolio risk analysis. The short-term trading approach employs ChatGPT to generate actionable BUY signals from financial news data, integrating these signals with GARCH volatility modeling and technical indicators for effective intraday trading. Trades are executed strictly within market hours, with positions closed upon reaching a 0.5% intraday gain or at market closure. Additionally, for long-term portfolio management, this study incorporates the NSGA-II algorithm to optimize portfolio allocation, balancing potential risk, expected returns, and sentiment analysis. This integrated approach provides a robust and practical method for both short-term trading and long-term portfolio risk management.