StockGPT: A GenAI Model for Stock Prediction and Trading

Generative artificial intelligence (GenAI)--a set of advanced technologies capable of generating texts, images, videos, programming codes, or arts from instructions via sounds or texts--has taken the society by storm and exerted wide-range influences on many aspects of the world economy (Baldassarre et al. 2023; Mannuru et al. 2023; Sætra 2023). Although it had been around for years, GenAI came to public prominence since the introduction of ChatGPT in November 2022, a chatbox able to generate answers, reasoning, and conversations at human level. Since its introduction, ChatGPT and similar large language models have quickly made their ways into the investment industry. One common use of ChatGPT for investment is to give trading recommendations directly from news about a company (such as news articles or corporate communications) (Lopez-Lira and Tang 2023). A less direct approach is to rely on similar pretrained language models such as BERT (Devlin et al. 2018) and OPT (Zhang et al. 2022) to generate a sentiment score for each company which is then used to make trading decisions.