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I also did this a few months ago using a custom MCP server I built for the Alpaca API, the yfinance MCP server, and a reddit MCP server, and the "sequential thi

by dokka 1y ago

I also did this a few months ago using a custom MCP server I built for the Alpaca API, the yfinance MCP server, and a reddit MCP server, and the "sequential thinking" mcp server. I hade claude write a prompt that combined them all together starting with checking r/pennystocks for any news, looking up the individual ticker symbols with alpaca and yfinance, checking account balance and making a trade only if a very particular set of criteria was met. I used claude code instead of desktop so that I could run it as a cron job, and it all works! I mostly built it to see if I could, not for any financial gain. I had it paper trading for a few months and it made a 2% profit on 100k. I really think someone that knows more about trading could do quite well with a setup like this, but it's not for me.

duggan 1y ago
Did you benchmark it against holding the same value in S&P 500 or similar ETF over the same period?
- mattnewton 1y ago
  they said their paper account did 2% over a few months, which is not beating the s&p 500, and is probably why they said "someone could make money off this, but not me"
  - puppymaster 1y ago
    eh depending on what he means by 'specific set of criteria'. The vol might be lower than benchmark (i doubt it since they are pennystocks) Pretty sure OP sharpe ratio is higher than benchmark for the last two months.
  - duggan 1y ago
    I'm curious because 2% over the last few months while the S&P 500 is tanking might be interesting, but doing worse than the S&P 500 over the same period is less so. Hell, that's lower than inflation. It may be no better than flipping coins.
  - nickysielicki 1y ago
    This year? 2% is most certainly is outperforming the S&P500.
    - mattnewton 1y ago
      eh, depends on the two months in question.
- swexbe 1y ago
  Something like Russell 2k would be a better comparison if GP is trading pennystocks.
cedws 1y ago
I mean, sounds cool, but without backtesting that 2% could be just noise.

by dokka 1y ago

duggan 1y ago

Did you benchmark it against holding the same value in S&P 500 or similar ETF over the same period?

mattnewton 1y ago
they said their paper account did 2% over a few months, which is not beating the s&p 500, and is probably why they said "someone could make money off this, but not me"
- puppymaster 1y ago
  eh depending on what he means by 'specific set of criteria'. The vol might be lower than benchmark (i doubt it since they are pennystocks) Pretty sure OP sharpe ratio is higher than benchmark for the last two months.
- duggan 1y ago
  I'm curious because 2% over the last few months while the S&P 500 is tanking might be interesting, but doing worse than the S&P 500 over the same period is less so. Hell, that's lower than inflation. It may be no better than flipping coins.
- nickysielicki 1y ago
  This year? 2% is most certainly is outperforming the S&P500.
  - mattnewton 1y ago
    eh, depends on the two months in question.
swexbe 1y ago
Something like Russell 2k would be a better comparison if GP is trading pennystocks.

cedws 1y ago

I mean, sounds cool, but without backtesting that 2% could be just noise.