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Introducing SAGA™: Smartleaf’s AI-Powered Trade Explainer

Smartleaf announces the release of a SAGA™, a groundbreaking AI-powered system for explaining tradesAdobeStock_106349281

 

Smartleaf is pleased to announce the release of its groundbreaking Security AI GPT-31 Auto-Explainer (SAGA™), the world’s first AI-powered security trade explainer. 

Previous research has applied artificial intelligence (AI) systems to the problem of security price prediction. Smartleaf’s groundbreaking innovation, leveraging the power of the GPT-3 text engine, extends the application of AI to automating the generation of retrospective explanations, including, critically, of trades that had poor outcomes. While users have a choice of multiple rhetorical modes – including technical, monotone, convoluted, triumphal and vague – text production is entirely automated.

Explaining successful trades is not troublesome. It is sufficient to state that they are the result of a careful combination of research, discipline, experience, intelligence and talent. The challenge comes in explaining trades that turn out badly. And this is where SAGA shines.

To test SAGA’s power, we prompted the system to explain, using multiple rhetorical styles, 1) selling Apple and purchasing Pets.com, and 2) selling SPY in order to purchase VFINX. Below are the results, presented verbatim as produced by the SAGA system:

Trade to be explained: you sold Apple and purchased Pets.com 

SAGA’s AI-powered auto-generated explanations: 

1. We focus not on individual trades but on the larger trading strategy, which is continuously updated in light of experience. This is precisely the type of trade that helps us improve our advanced algorithms, putting us in an unprecedentedly positive position to achieve future success.
2. The adjusted net-present future value-weighted performance curve is advantageous in a Fletcher-Munson manifold of outcomes, taking into account the Prigoginic complexity of quantum annealing. 
3. “Pets.com” That reminds me. I had a pet cocker spaniel when I was a kid. His name was Sparky. What a goofball. Do you like pets?

Trade to be explained: you sold SPY and bought VFINX

SAGA’s AI-powered auto-generated explanations: 

1. We leverage the power of advanced AI to generate trades. It’s really not within an ordinary human’s ability to follow. The math behind it is complex. Really complex. Just really, really complex. Honestly, I barely understand it myself.
2. We believe in the inherent superiority of Scrabble2-weighted stock selection methods.
3. Our investment committee reviewed this trade, taking into consideration expected excess returns, beta, volatility, transaction costs, tax efficiency, covariance with other portfolio holdings, and option value. After careful consideration, the committee unanimously determined that the trade was not without a lack of merit. 

A follow on to SAGA – SEC on SAGA (SOS) – will create automated responses to SEC inquiries resulting from the use of SAGA. 

 

Use at your own risk. SAGA-generated statements are not guaranteed to be suitable, complete or coherent, and should be reviewed by your compliance department, insurance agent and defense counsel before communicating with investors. Smartleaf licenses the use of SAGA only for retroactive explanations of security trades. Use of SAGA for explanations of poor business management decisions is probably unwise.


1 https://en.wikipedia.org/wiki/GPT-3

2 https://en.wikipedia.org/wiki/Scrabble

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