Formula AI: Launch of my AI Investing Project
Project Introduction
Welcome to my first project series, where I share my project, Formula AI (Formula Artificial Intelligence).
Formula AI was formed by me from asking the question:
Can AI help us invest money?
I decided to approach ChatGPT with this question, and I spent some time devising a plan to test my theory. Before I get into the project details, I want to talk about AI and how the world sees it right now.
AI in the World Today
Artificial Intelligence is not a new concept, but it is something that required a lot of science to take it from theory into reality. It is defined as "the simulation of human intelligence processes by computer systems". This is a broad definition, and when you think about it, AI has been around for longer than most of us realise. When we first started to use computers, we fed information to them in order to perform menial tasks. We first had to teach computers how to perform those tasks.
Consider when you first learned to add big numbers together. Your teacher showed you a method of starting with the smallest unit (the tens) to add them together, then move on to the next smallest (the hundreds), and so on. Then you could sum big numbers through this simple methodology. And finally, the day came when you were allowed to use a calculator! You didn't have to spend time adding those numbers together; the calculator did it for you. Instead, you could focus on the more complicated part - what you need to do with the answer.
Today, we have systems like Wolfram Alpha where you can send it a math problem and it will automatically solve it for you. Computers help us save time, and as we have developed new technology over the years, we have found ourselves in a unique moment in history - nearly all the information of human existence is at our fingertips. If you have a question about anything, what is your first point of call? Probably the search bar of your favourite web browser.
Artificial Intelligence, as it is known today, is the next big thing, and it's changing how we do everything. Think about how we started with virtual assistants like Alexa, Siri, and Google. These could answer questions for us, take care of simple tasks like setting alarms, and even interact with other technology to turn on and off appliances! Over the years, their capability has grown by interacting with and learning from people every day, and learning what we use technology for. We are now seeing all of these virtual assistants start to incorporate more intense programmes to analyse language and intention in real time to give us more accurate responses.
We're starting to see ChatGPT (OpenAI), Copilot (Microsoft), and Gemini (Google) pop up everywhere. We're already having discussions about topics such as AI-generated artwork, and the benefits and problems with it. AI is getting better all the time, and we need to be mindful of how we use it. It is not going away, so we need to evolve with it. Like anything we have built in human history, it is a tool. It is not inherently good or bad. Using it ethically is the real quandary.
How I Use AI
When I first started to play with AI, I opened a new chat in ChatGPT and started asking it questions about a topic I was interested in. I received Baldur's Gate 3 as a Christmas present in December 2024, and since I had no idea what I was getting into besides a Dungeons & Dragons-based game, I wanted to ask ChatGPT for some background and tips. Normally, I would just trudge through Reddit (and I did at the start!), but I found myself asking questions that other people hadn't, so I asked ChatGPT those questions.
What I found was that it helped me to start the game with the right mindset. I like to know what I'm getting into, to a degree, so I can be intentional with how I play the game. One of my biggest fears in a video game is missing something that you can't go back to. Now, in Baldur's Gate 3, there is so much to miss - but the beauty of the game is that is part of the design. You are crafting your own story each time you play the game. Not like Bioshock, where you have console achievements that cannot be awarded if you go past a certain story milestone without unlocking them! I wish I had ChatGPT for that all those years ago.
Talking to ChatGPT about Baldur's Gate 3 helped me to get oriented to the style of game and figure out how I wanted to play it. It was my go-to advisor when I got "stuck" with something. One good example is that there are many occasions in the game when you are presented with an option to progress to a new area, but are given a warning that the story may continue in unexpected ways if there are unresolved quests. ChatGPT helped me by directing me to shaded areas of the map I hadn't explored yet, or to warn me that this new location expected you to be a certain level. This is just one way of turning ChatGPT from an advanced search engine into an expert guide!
This interaction opened a world of opportunity to me because I could see the potential of creating a confidant to explore my ideas. I don't use AI to create for me; I use AI to collaborate with me. My collaborations largely take the form of brainstorming an idea or problem with ChatGPT, teasing out what is at the core of my question, and building a strategy to execute the solution based on my needs in the moment. It is my brainstorming buddy, my assistant, my reviewer. But it is also the devil's advocate, my teacher, my coach.
Using AI as a Guide
I wanted to test the theory - "can AI help us invest money?". I decided the answer is “yes”, because no idea can grow with "no". So I enlisted the help of ChatGPT to build an experiment.
I have always been interested in opportunities to grow my wealth outside of a savings account. The traditional savings account and pension felt so limiting to me, so I started to explore investing my money about 10 years ago.
There are so many options out there for where we can put our money - stocks, bonds, options, cryptocurrency, technology, businesses, and so on. But so few people in my life look at any of those because they don't know where to begin, and they are scared of losing their money. Granted, I didn't know where to begin when I first started; I just had to take a chance and see. I've had my share of wins and losses, but overall, I'm out on top - not just financially, but I'm ahead of the curve with knowledge too. This is where I wanted AI to come in. How could I use it to teach me (and others) how to get started with investing money? How could it help to break down the learning curve? Using all the information it has access to, what would it decide to do if it were in my shoes, as an investor?
So this is where I started - I asked ChatGPT to:
Gain an understanding of the kind of investor I am
Learn what I want from my money
Craft an investment strategy to suit my profile
Take me through it step-by-step
It went on to ask me a series of questions about how I invest my money currently and built a risk profile for me. After that, it asked me what I wanted to gain from investing this money. It combined my investor profile and desires to form a portfolio of stocks, proportioned for different levels of risk, and provided me with step-by-step instructions on how to execute this portfolio.
Initiation of Formula AI
I wanted to document this project as I went through it, and that's when I came up with Formula AI. As well as executing the portfolio strategy, I wanted to share my journey as it occured, so I began crafting this blog series. This is the introductory post, and each month I will report on the progress of my investment and share my thoughts and reflections on how the project progresses with the help of ChatGPT.
I told ChatGPT how much money I wanted to dedicate to this project (€4,000), which platform I was using (Interactive Brokers), and how often I wanted to actively manage it (monthly). As someone with experience in investing, I was able to take on the suggestions from ChatGPT and make sure the steps it shared were possible to execute. It built my investor profile and suggested 5 stocks to invest in according to my goal. It told me how much money to put into each one so that my entire portfolio would have the breakdown it recommended. As I started to follow the steps, I noticed that there were some issues in the process. But I overcame them enough to get started, and these will be valuable feedback points for me when I craft a ChatGPT prompt to replicate this process so that others can use it.
Unavailable Stocks
The first issue was that two of the stocks it recommended were unavailable for me - they did not pass the required checks to allow an investor in Europe to buy them. So, I had to ask ChatGPT for replacements that an investor in Europe would be able to buy. Once I had the new ones, I checked my platform, and they were eligible to purchase.
Currency Conversion
The second issue was that the platform I'm using shows the local currency cost of shares, and does not convert it to the base currency of my investment. For example, one stock in USD would show USD cost, and the effect on my EUR balance would not update until after the transaction. This was a problem for my allocations, so I had to take the allocation amount in EUR, the share price in USD, and that day's FX rate to work out how many shares I could buy in USD. Not a complicated task for me, but I can see how this would be a barrier for a lot of other people, especially those who are just starting to expand into more currencies and more instruments.
My Investor Profile
ChatGPT determined that my investor profile is Moderate-to-Variable Risk Investor. In the traditional sense of investor risk profiles, it is closest to a 5. If you ask anybody who is familiar with investing, they should be able to tell you that a 5 means "likely to understand that the investment can go down and up sharply with the potential for greater returns over the long-term". But what does that really mean? Well, this is where ChatGPT shines.
Not only did it classify me on this scale, it went into depth about my behaviours as an investor - it identified my comfort zones, my danger zones, and provided a lovely summary to translate that "5" into something I can explain to anybody! I answered the questions about my risk profile in relation to Formula AI, and this is what it came up with:
My Traits & Behaviours:
Intentional Learner - You're investing to learn, not just earn. That reduces emotional overreaction to short-term dips.
Experiment-Driven - You think in terms of experiments, not wins/losses. This frames risk as exploration.
Emotionally Grounded - You're willing to share your progress publicly - even losses. This shows confidence, not fragility.
Comfortable with Adjustments - You've built a monthly check-in routine and welcome changes. You're open to AI-driven rebalancing.
Risk Allocator - You split your portfolio into Core (60%), Growth (30%), and Speculative (10%). That's textbook strategic diversification.
My Comfort Zones:
Medium-term risk with monthly oversights
High conviction in themes (quantum, AI, innovation)
Ethical investing filters
Flexibility in asset types (stocks, ETFs, options... eventually)
Transparent public learning process
Your Red Zones:
Blind speculation without guidance
Overly complex or fast-paced trading (e.g., day trading)
Letting hype override your AI's logic
Getting stuck in perfectionism or decision paralysis
Summary:
You're a strategic explorer. You want your portfolio to teach you something, earn money if possible, and always remain grounded in intentional action. You're not afraid of risk - as long as it has purpose, parameters, and a prompt to review it.
My Goal
To start, I looked at the parameters of my project:
Amount: €4,000
How: Interactive Brokers (IBKR)
When to Review: Monthly
In addition to sharing my parameters with ChatGPT, I shared my vision for the project. I set myself a target of reporting on this for 6 months. I discussed taking this on as a project to share, and I explained that I want to focus my investments in the area of Artificial Intelligence and Quantum Computing. It was important for me to take care to make ethical investment choices.
I chose the area of AI because it's one I don't currently have a stake in, and seemed fitting given who my advisor is. It was important for me to consider ethical investment choices, considering the impacts on climate change, and who the investments are managed by. With these goals in mind, ChatGPT built my strategy.
My Strategy
There are two parts to the strategy:
The Portfolio Allocation
The Portfolio Breakdown
The Portfolio Allocation is how the investment is allocated across 3 different areas - Core (60%), Growth (30%), and Speculation (10%). This gives a mixture of exposure to different kinds of stocks. The Core investments are two Exchange Traded Funds (ETFs). The Growth investments are two individual stocks dealing with emerging technology. The Speculation investment is a single higher-risk stock that is exploring quantum computing.
The Portfolio Breakdown is the actual investment of money across individual investments. How this works is, you find your allocation for each area in monetary terms, and evenly split that amongst the stocks in that group. That means that Core gets €2,400 across two stocks, Growth gets €1,200 across two stocks, and Speculation gets €400 across one stock.
Formula AI in Action
Once I had all the pieces ready, I started to buy my stocks. I worked out how much of each stock to buy so it would meet the allocation goal without going over, and I set limit orders to buy the stocks. A limit order is where you set the number of shares to buy and the price you want to buy at. This allows you to curate exactly how much you spend on that stock.
My portfolio as of Day 1: 3rd June 2025 consisted of:
| Category | Ticker | Company | Local Currency | Shares | Euro Cost |
|---|---|---|---|---|---|
| Core | QUTM | VanEck Quantum Computing UCITS ETF USD A EUR | EUR | 66 | 1,197.60 |
| Core | ARKI | ARK AI & Robotics UCITS ETF USD Acc | USD | 170 | 1,184.09 |
| Growth | IONQ | IonQ Inc. | USD | 16 | 581.76 |
| Growth | RGTI | Rigetti Computing Inc. | USD | 54 | 593.29 |
| Speculative | QBTS | D-Wave Quantum Inc. | USD | 26 | 391.25 |
| Cash | EUR | EUR | 52.01 | ||
| Total | 4,000.00 |
Each month, I will report my holdings as they are and talk about any rebalancing that ChatGPT recommends. As the stock prices rise and fall over time, the Portfolio Breakdown will change. Rebalancing is the process of buying and selling shares to bring your Portfolio Breakdown back in line with your Portfolio Allocation.
Disclaimers
I am asking AI for advice, but ultimately, I am taking on the financial risk. I am willing to forgo research in this instance, just relying on ChatGPT for guidance. That means I am following its advice on the stocks chosen, the allocation amounts, and the transactions to execute if I rebalance. If it tells me to do something I'm not allowed to do (such as invest in a certain security because it's unavailable in Europe), then I tell it I can't follow that plan and ask it for alternative steps.
I am also learning as I go, so if I need to change my process, I will. Any changes to my plan will be laid out in my subsequent blog posts.
Finally, since I'm playing with real money, sales are taxable events! If you are getting involved with trading, you will need to do your taxes. AI can help point you in the right direction for your locale, but ultimately, you should consult a tax professional about your obligations.
Takeaway
So this is where the real magic can begin - seeing how this turns out after 6 months. I'll report my progress each month and document the journey of investing using an AI guide. I asked ChatGPT for a quote to share with you, as it acts as my advisor:
This portfolio isn't about chasing rockets or beating the market - it's about building something intentional.
We're using AI to create a strategy, not a gamble. If it works, great - if it doesn't, we'll learn something no algorithm could teach us on its own.
Either way, we show up each month, experiment boldly, and treat progress as the real profit.
Take care!
Kiki <3
