🧠💰 From macro to micro alpha, LLMs are transforming asset pricing, forecasting, and trading.
Here are reviewed recent academic papers that explore how GPT models (ChatGPT, GPT-4, DeepSeek, etc.) are reshaping financial research and investment strategies. Below is a curated snapshot across equities, crypto, macro, and more.
📌 Selected Highlights with Links
🧠 “GPT-4 can invent stock return factors that outperform anything on Wall Street.”
📉 “ChatGPT understands central bank tone better than humans—and predicts policy moves.”
📞 “If the CEO says something ChatGPT wouldn’t—pay attention. That surprise is alpha.”
📃 “GPT summaries of filings are shorter, sharper, and more predictive than raw text.”
📊 “Retail traders now act on the same signals hedge funds used to keep private.”
🌏 “GPT-based signals predict daily stock returns in China with up to 91% annualized alpha.”
📰 “Markets ignore good news—ChatGPT doesn’t. That’s alpha.”
₿ “Crypto Twitter noise becomes tradable alpha using ChatGPT sentiment.”
🤖 “GPT agents collaborating on crypto trading strategies beat the market.”
💡 “New prompt designs help GPT avoid behavioral traps—boosting Sharpe ratios in gold.”
📈 “From Twitter news alone, ChatGPT builds profitable day-trading portfolios.”
LLMs are becoming active participants in alpha generation.