Study: LLM Trading Strategies Trail Simple Buy-and-Hold Over 20 Years

LLM-driven stock-timing strategies mostly failed to beat a simple buy-and-hold approach in a large-scale test spanning 20 years and more than 100 stocks. A research team affiliated with the University of Edinburgh reached that conclusion in the paper "Can LLM-based Financial Investing Strategies Outperform the Market in Long Run?", which was also covered by a major U.S. newspaper under the headline asking whether AI is good at market timing.