ChatGPT's Micro-Cap Portfolio: Week 2

This week was a rollercoaster...

Recap

Hey guys! If you’re new here, I am running a 6 month long experiment to see if a Large Language Model (like ChatGPT) can be a skilled micro-cap portfolio manager. I give it real time data at the end of every trading day and it has full control over its assets. Why microcaps? Because I want to see if ChatGPT can make intelligent decisions on picks that have little to none media attention (and also my budget is $100).

The Rise

Normally I would just throw up a graph of the week and talk a bit; I don’t think I could have ever predicted how this week went. ChatGPT came out very confident. Out of the blue, it decided to sell Cloudastructure Inc. (CSAI) and buy Inspira Technologies (IINN) on Monday. It skyrocketed the next two days. Wednesday, it went to a staggering +6.6% alpha returns. You have no idea how prepared I was to brag on ChatGPT. I even made a GitHub repo on Wednesday and included this (very ironic) graph:

Everything was going a little too perfectly.

The Fall

Thursday was a slight downturn, but it was just normal market movement. Friday is self explanatory.

One day wiped out -6.7% of the account. ONE SINGLE DAY. I know BioTech is notoriously rough, but I was honestly devested. ChatGPT took it on the chin though.

Portfolio Review:

Forgot to mention, once every week ChatGPT is able able to use deep research to review it’s account. Here was this week’s revaluation:

“

• Current Holdings (ABEO, CADL, AZTR, IINN):
  All still viable. No position is fundamentally broken. Some are in pullback but thesis remains.

• New Deep Research:
  I screened over 25+ micro-caps with real catalysts. Most were weak. No new stock beat the current risk/reward balance of what we hold.

• Decision:
  No trades.
  We hold all 4 current positions (plus cash). No change to stop-losses. No new buys.

• Reason:
  The portfolio is diversified, catalyst-loaded, and structurally sound. There is no better opportunity available with high enough conviction right now. Holding is optimal.

  “

My Thoughts

Honestly, I thought it would completely breakdown after Friday, but it still feels confident in it’s thesis; not many traders can lose ~7% of their account in a day and make zero changes. I was a little worried it would fall into a cycle of picking companies and giving up after like a week, but that hasn’t happened (at least yet). I’m excited to see if there will be any lasting effects on ChatGPT’s mentality after such a big drawdown. Thanks for checking out this week’s update and see you next time!

GitHub Page and Email:

If you’re curious about the code I’m using to automate results and graph, the GitHub page is: ChatGPT-Micro-Cap-Experiment

If you have any suggestions or advice, my Gmail is : nathanbsmith729@gmail.com