I Built an AI Hedge Fund with Grok Bot (Full Setup + Results) transcript

If you are not using AI right now to take better trades, you're out of the loop, folks. Groc 4.7, but specifically Grockbot, is absolutely built to be able to build your own agentic trading team. And that's what we're going to focus on today. What we're going to go through is the actual process of building the entire Aentic trading team. I'm going to show you how to build a robust team of AI agents. We're going to generate trade ideas.

We're going to try to get them to give us entries, stops, and take profits. We're going to talk through managing risk. My name is Hamilton here with the Trading Initiative. So, without further ado, if you haven't already, I highly encourage you to go and add Dr. Eggbot. Dr. Eggbot is a template. It's super popular right now. I think Grock actually officially endorses it. If you click here on marketplace, it's one of the very first Grockbot templates that you can grab.

What Dr. Eggbot does is essentially it fulfills uh the the bot creation role and it gives each bot a very narrow uh role. So you don't have to necessarily worry about different bots doing different jobs that you don't want them to do. Go and grab Dr. Eggbot and start there. And I said, I need a couple different roles fulfilled before you build anything. How would you build this team? I think it's a very, very important concept when you're using AI to reverse prompt.

And by reverse prompting, what I mean is ask it a question. Don't give it all the answers. Ask it how it would do it. And then you can add into it, but let it kind of build out the game plan first. You'd be very surprised at how efficient these things are. And they also come up with a lot of things that aren't necessarily in the front of your mind. So in this case, Crockbot came up. He said, "Listen, let's have four different bots.

Got the fun PM, a research bot, a risk bot, and an Opsbot." And so I said, "Listen, it's a good start, but I think there needs to be a couple more specific bots. For example, I'm into technicals. If you know anything about me, I'm all about technicals. Let's get a technical bot going. Let's get a fundamental bot going. And while we're at it, let's go ahead and grab a quant bot." Right? we can run through different back tests, different strategies, etc.

Particularly on the weekend when markets aren't open. And so it automatically started filling out kind of this hierarchy. All right, so we have the fun PM, then we have technicals. What are technicals looking at? Charts, structures, levels, timing, fundamentals, regime, flows, positioning, catalyst, and the list goes on. You can see we're starting to build out kind of this robust team. I said, let's go with one last bot.

Let's tear the trade apart before we actually put it on. So the idea here is that the technical bot and the fundamental bot are both going to be going in their own separate direction, right? They're going to look for something that makes sense to them and then they're going to come together and they're going to make a decision which stock or stocks looks good from a technical standpoint and a fundamental standpoint. But before any money goes into those, I need kind of that checks and balance approach.

I need the skeptic. I need the bot that's going to tear down the idea. What is the devil's advocate? What's the other side of the trade? What happens if this doesn't work? should I be looking at this a different way? And so that's exactly what Grockbot went and did. Went out and built out this bot called the skeptic. And it goes, "Listen, when the technicals and fundamentals and quant if necessary kind of build out this trade idea, fun PM says, let's go." Skeptic steps in and goes, "Well, what about this, this, and this?" And the idea is to have the technical and the fundamental bot and the quant if necessary kind of battle against the skeptic to see if the trade still holds up.

I said, "This is great, at least for the very beginning. Let's go ahead and create the entire team. And Grockbot went ahead and created all of it. Right? So, we had the fund PM technical, fundamental, quant, skeptic, risk, and ops. And ops is basically just journaling what we do, which is super important, by the way, because if you actually do start trading this, you want a ledger of everything that we do, all the trades, all of the decisions, things that we took, things that we didn't take, where we took stops, where we took profits, you want a bot that's dedicated to that.

The only thing I'm going to point out is that if you are intraday trading, etc., You're going to need some sort of data package. Right now, what we're doing is just on free data, Finn Viz, anything else that's available for free that we can pull after hours. This thing will kind of pull it up and populate it out. That's fine. But if you want intraday data, it can get a little pricey, but you can go out and find these data packages.

So, let's go ahead and actually get started here. Let's go back to Dr. Eggbot. So, I'm just going to go in and I'm going to go, hey, I'm creating a video for YouTube, and I want to make another TTI hedge fund. Let's go ahead and start there. This is going to be independent from the one we just built. And I want to include the top down process we use in TTI as well as the bottom up process we use in TTI, right? The the market blueprint framework is our top down.

The hit list uh framework is our bottom up. Uh what we're doing here right now is legitimately stuff that we do in TTI. So we look at the market through a top down framework first. We're looking at different uh trends of primary index or primary trends of indexes. We're looking at financial conditions. We're looking at market breath. We're looking at sector and industry flow etc. And then we're going from the bottom up.

Individual leadership stocks, technical setups, etc. So let's go ahead and see what this thing actually says. So the top down is macro regime flows, factors, sectors, what universe is allowed? Sure. Bottom up are names and setups inside that universe levels, relative strength, triggers, and validation. That makes total sense to me, right? Top down is building the bigger picture across the entire market. Bottom up is finding the absolute stock.

We have the skeptic bot, which I still think is a great ad. Here we have risk, which I'm going to show you really quick how you can actually calculate the risk on trades. Nobody wants to do it. So just have AI do it. And then again, the opsbot where we're actually looking through journaling everything that we're So how the two process meet? We're looking to set the regime allowed in the sandbox. Sure. Bottom up only hunt setups inside that sandbox.

Yes. Looks all good. Create the bot team. Add it into a new category called TTI demo fund. So, this is all Dr. Eggbot. Once again, none of this is me. He's going to create all the bots and he's going to give them all of the roles. So, I don't have to do any of this stuff. Once they're done, this is pretty quick here. We're actually going to go through and answer some of the introductory questions and you can start to see how the actual fund takes shape.

So, you can see already populating here the TTI demo fund. We got the demo quant, the demo bottom up, top down. Got the fund PM, got ops, risk, and skeptic. So, the entire team's already built out. What did that take? Less than 30 seconds. All seven demo seats created confirming they are now inside the demo fund. So, let's go ahead and start. Why not? Let's go answer some of these questions. Okay, so where do you want to start the demo book?

That's the first question from the demo fund PM. I would say, you know, um let's set the top down sandbox, right? Uh the regime is concentrated risk on late cycle but intact at the index narrowing. We got the Fed. We got all the stuff here. It already kind of knows what I look for. Flows, texts, and semis and buffers. Got it. Financials and rate exposed cyclicals are seeing redemptions. So, what are we hunting right now?

US large and mega cap quality growth. Sure. So, it's already kind of telling us where the strength is in the market. We haven't even done anything yet. This is fantastic. So, the demo fund is already pulling from the demo top down bot and it's already starting to kind of, you know, pull this out. So, let's go ahead and just green it. But just so you see how this is built, let's lock this top down sandbox. Sandbox locked.

Bottom up is unlocked inside that box only. So what are we looking for right now? We're looking for AI, semi tech, quality growth, selective healthcare, profit, multiple names, midcap, small cap, beta, banks, RSP, energy default, etc. I'm sending them on the hunt right now. Set demo risk rules while the bottom up hunts. Sure. Let's go ahead and lock risk rules. Now, this is what I was talking about when I'm talking about managing risk, right?

Let's set a Let's set a uh $25,000 uh account here for the demo. Tell me how much we should risk on each trade, etc. Let's just do that. So, the demo account's $25,000. Let's go ahead and start there really quick. Base risk is 1%. You already know that that's kind of the where everybody starts. Whether you follow it or not is completely up to do up to you. But Grockbot is saying, "Listen, let's go ahead and risk 1% per idea, $250, high conviction, which is post skeptic with clean levels.

You can get up to 1.5, which is $375." And you can see we can come down as well. It should be a sliding scale, right? Depending on how um much conviction you have, the actual setup. Shows you the size formula, etc. Caps on 25K. You can see all this stuff. Long at 100, invalidation would be $5. Sure. You know what? That looks okay. Let's go ahead and just lock that. But what we don't want to do is we don't want to put like 15 to 20% into each stock.

At least not right now. Let's go ahead and run a couple trades first. Probably a sample size of like 25 to 50 trades with the stuff that's actually being recommended from Grockbot before we start upping the risk. We want to make sure that there's actual edge here, right? What kind of technical setups are you looking for right now? I think that's a fair question, right? Because we haven't even done anything. So it says right now it's looking for relative strength levels trigger invalidations, right?

So here's what it tells me. three patterns only. We're either at all-time high or near new highs. So, we need names that are leading in relative strength against the broader market. Sitting just under new highs. Trigger is a daily close that holds the pivot or reclaim after a shallow dep uh dip. All right, that makes sense. Uptrend pullbacks keep higher lows. That makes sense, too. Quality leg re reclaim secondary profits funded mega that underperformed year to date but is rebuilding.

Sure, that makes sense. Let's say you want to add something, right? I want to add some momentum here. Let's use the RSI and MACD just see what it does. So adding the RSI with a 14 period look back MACD to every score. Default rules unless you want them tighter as a continuation equals RSI roughly 50 to 70 which is perfect. If you don't know that's a bullish momentum machine. That's what we want. And the MACD line above signal or histogram flipping up at the trigger.

What does that mean? Momentum is reacelerating which is what we want. If we're looking for stocks that are just breaking out here, we want names that are reacelerating into the high, not losing steam into the high. While this is kind of finishing up, let's go and look at the demo quant. So, this is generally what you're going to see when you first start these things. Um, you're going to get like these questionnaires.

And I think it's important to not skip through these because this really dictates the way the bot interacts moving forward. If you want to go ahead and change anything in the future, you can. But this gives you right off the bat an opportunity to kind of lay down the ground rules. Right now it's asking life for the demo fund. I'll do metrics signals simple back test correlation size math under the demo risks etc. So what do we want to do first?

You can either paste the setup you can pull the book and risk limits or you can stand by. So right now I think what we're going to do is just click let's standby until the demo PM kind of routes work towards the demo quad MACD's on every card and RSI Nvidia TSM Google Meta Microsoft and AMD. So AMD is a stretch. So when we go back demo fund it's reranking these. Nvidia is the best. RSI's at midband, MACD with a flip up.

Apple next TSM, Google, Meta. Meta's demoted to wait because it's overbought in mine line of work. Overbought's pretty good, but I will agree that we should wait because Meta, like I said, just went up 12%. Uh, yesterday still wait watch Microsoft AMD. So, let's go through these really quick, right? Because you don't just want to buy things straight up off of this. You want to go through and like actually see this stuff, right?

Go to TSM. I love the TSM setup. I do not currently have it right now. There's absolutely a play here. You have momentum re accelerating. You're within a bullish momentum regime. You're in a new 50-day highs. You're stacked above all three moving averages. The only knock is the short terms below the intermediate term, but a couple more days of up and that'll change. And you're breaking out into, you know, there's no overhead supply here.

Very little overhead supply is indicated here by the VRVP. So TSM actually looks pretty good here. Let's go ahead and say, yeah, I like Nvidia here. Let's go ahead and plan the whole trade. What would be an entry stop and take profit that makes sense if I'm looking to hold until at least the end of the year? So, I threw that in there because I'm not a day trader. I don't want it to come out and say like I'm looking to scalp a 2% move and only risk a.3% pullback.

That's not my thing. I'm looking for bigger moves. I'm looking for double digit moves really is what I'm looking for here. So, for example, I want it to move 10% while I'm risking 2% or 3%. Looking for a 3 to one or greater setup. So, let's see what it says here. Did I say Nvidia? Whoops, I meant TSM. TSM is now on the list. So, the entry here would be 445 with a recline of 455, an alt dip by of 430. If it pulls back, add strength through 460 to 479 with a stop of 420.

And it gives you some size requirements, right? At entry, kind of where your stops are going to be and take profits or 460 to 479. And T2, it even tells you how to take profits. I haven't told it to do any of this stuff, right? So risk-to-reward, if you're looking at this stuff, I don't love the risk-to-reward here. How about this? I'm looking for a minimum of 3 to one for R. You don't have to agree with everything that it's saying.

Like I said, take your time to kind of set up the actual premise first and then it'll go through and it'll from now on it'll only look at 3:1 setups. You don't have to fight it anymore. Just tell it one time. Minimum 3 to one. It doesn't make any sense for me to get involved if it's not at least 3:1. Now it's going to go through and it's going to build a new trade idea. So it locked 3:1 setup no matter what. You can see entry 455 to 1 R35 560 520 etc.

So the Yay package has to change cut early into 46479 as a profit take that's fading at 3:1. So it's telling us what we're actually changing go through etc. I'm sending skeptic the rebuttal pack. No, we're going to wait. We're not going to relax. 3:1 is a hard rule in my book. I don't want to trade anything less than a 3 to one. But here you go. I locked it. I said we're waiting for the pullback. I want that 3 to one.

Here is kind of the entire trade right now. live card. Wait for the zone pullback. Soft stops, hard kills, first objectives, etc. Skeptic is kind of going through it to see if it makes any sense. And let's see what it says at the very end here. Demo quant's kind of running through the the numbers behind it, right? Going through and figuring out all the different RS. This is great, by the way, because we're not doing any of it.

We said 3 to one minimum risk-to-reward. Demo quant's going through. It's figuring out exactly what the price points need to be in order to go ahead and lock that in. Demo risk rules are locked, right? We just said 3:1 minimum. Nothing else. Nothing lower than that. Demo fund TSM on for the pullback under 4375. 3:149. Skeptic repass in flight. Still no capital. So skeptic is doing its job. It's sitting there going, "Listen, it looks like a good trade, but there's definitely some things we have to be skeptical about.

No pun intended. It's still a hold. Starter math passed. Five fails left." This is the benefit of having this entire team go through checks and balances. Instead of just yoloing random stocks, instead of just following tickers on FIN Twit, instead of just following your group chat, you can go through set up a system and it will tell you whether or not the math makes sense. It'll tell you how much you're going to lose if you don't win.

It's going to tell you how much you're going to win if you do win. And you can kind of figure out even before the trade gets on whether it's even worth the time and effort to put it on. Demo Ops is going to go and fill out its scorecard at the end of this and tell us whether or not this was a a winning trade or a losing trade once we end up taking it and then closing it, right? So, Demo Ops is going to record all of this.

So, let's say in the future we want to go through and look at the TSM trade. Let's say we take this, I don't know, let's say we get stopped out. We can go through the demo ops that records all of this stuff and figure out maybe can we learn something from the loss. Let's go through and kind of mine through the the thought process here. Can we clean anything up? Can we tighten anything up, etc. Cleared? Skeptic hold. Cleared.

Risk already. Okay, this is it. Right. Capital. Yes. Yes. Let's go. The entire trade idea is here. It has the $25,000 account. Tells you to buy eight shares. Risk 140 bucks on it. Here we go. There's the entire trade. But I highly encourage you to kind of build this system yourself. Okay? Build this system yourself. Have a series of checks and balances. You can build all of this stuff through any sort of agentic harness that you want.

Again, my favorite right now is Crockpot. We'll see what happens when Enthropic and OpenAI drop theirs, but as of right now, I love this stuff. I think it's the future. This puts the power back in the hands of individuals. It's not just like hedge funds and quant funds that are doing this anymore. You can do it as well. You can make this as robust as you want, as complicated as you want, or as simple as you want. It's completely up to you.

All right. My name is Hamilton. I'm here with the Trading Initiative. Let me know what else you like to to hear about. You know, is it more about this agentic trading? Is this something that you really like and you want to explore more? I do it every single day. We can dive into specific ideas and setups, etc. within different harnesses, ways to build the team more robust, come up with better trades, etc. Also, subscribe to the substack below.

There's a $10 sub if you want these scanners sent to you every single night with the full list. I'll send one to you for $10 a month. Every single trading day, you'll get one. If you want to join TTI, there's a coupon in the substack. Again, if you like this type of content, please like and subscribe and leave a comment below. Enjoy the rest of your night. All right, see you in the next video, folks.