GUARANTEED Returns From An AI Trading Bot?
GUARANTEED Returns From An AI Trading Bot?
What are the two fundamental types of artificial intelligence?
There are fundamentally two types of AI. One type is essentially an algorithm; you write the code, and it performs tasks, which has significantly eased coding requirements. For example, with GPT, knowing the prompts is crucial. When I instruct it to act as if it isn’t a language-based AI but rather a trader, it adapts and provides responses from that perspective. This simpler aspect of AI has facilitated creation.
The other type is neural networks, which resemble what you see in science fiction, like the Terminator. A neural network can think and learn from its errors. For instance, if it makes a poor trading decision, it learns and improves. The human mind might not grasp the myriad nuances that AI can handle daily. Neural networks are not new; I discussed them back in 1998 at TriNet. We encountered innovative technologies even then, such as silicon chips capable of self-replication, discussed by a brilliant MIT graduate from Germany. These discussions took place in advanced experimental settings where silicon chips were being designed to create other chips three decades ago. We also contributed to Fannie Mae’s Technology Council, developing the first version of a desktop underwriter using a virtual server. This system learned from its mistakes, continually enhancing its ability to predict and correct errors in loan underwriting.
How is AI revolutionizing the trading industry?
Neural networks have been around for a while. When I was running TriNet in 1998, we developed quite a bit of technology. I recall meeting a brilliant MIT graduate from Germany. His English wasn't perfect, but his ideas were groundbreaking. He told us about sophisticated experimental projects where they had created silicon chips that could self-replicate. They were building chips that could create other chips, even 30 years ago.
It sounds far-fetched, but we eventually worked with Fannie Mae, a well-known institution. We joined their technology council and helped develop the first version of their desktop underwriter system. This was a pivotal moment for me. The system could learn from its mistakes. If a loan went bad two years later, it would register that failure, analyze what went wrong, and improve. Over time, it became smarter and more efficient.
How do early life challenges influence entrepreneurial success and parenting?
When Ashley, my oldest, said I hadn't taught her to hunt, while Audrey, my youngest, was only 3 or 4, it made me realize I resented my dad for not giving us much besides knowledge.
I remember when I was six, my dad bought me a cool bike called a Vroom that looked and sounded like a motorcycle. He told me to take care of it because it was the last one I would ever get. That’s a tough thing to say to a six-year-old.
That pushed me to start selling greeting cards door-to-door when I was eight. I didn’t just win one bike—I won two bikes and a trip to Disneyland. I even brought my dad into that business as a crew manager. This taught me that you don’t need to make things easy for your kids, even if your dad didn’t make it easy for you.
I’m convinced I wouldn’t be where I am now if my dad wasn’t so frugal. And yet, I wanted to take away all the struggles from my daughters. Now, they can't be like me because their lives were maybe a bit too easy.
Why should financially secure parents teach their children practical survival skills?
Many people, probably most, live hand to mouth. I've been there myself. I have three millennial kids, and I see how tough it is for them. I try to help as much as I can, but my oldest daughter once told me, "Dad, I love everything you've done for me. You've made my life so easy, but you forgot to teach me how to hunt. I'm scared because you'll be gone someday, and I don't know how to hunt for myself." That really struck me.
I appreciate that you're encouraging your kids because it helps create something greater than yourself, which is the goal. My dad, on the other hand, always told me, "Nothing comes easy. Nice guys finish last." I used to say I'd be rich, and he'd respond, "Really? What are you going to do?" He'd say I was delusional, but that turned out to be the biggest compliment he ever gave me. Being delusional is powerful—nothing would ever get invented without someone delusional enough to believe in the idea. Thanks for that, Dad.
Because so many people live hand to mouth, it's hard to think spiritually or see money as energy. Plus, most of us have been told our whole lives that this is just "mumbo jumbo." Don't believe it.
How can attempting to correct past experiences through your parenting style impact your children?
Ashley, my eldest, once told me, "I love you so much. You made my life so easy growing up. And now I don't know how to hunt." We've helped her more than she ever wanted to ask for help, and she's not an entitled kid. It's hard for her to ask for anything. Usually, my wife or I notice things, like seeing her selling unused flooring on Facebook. That makes us think things might be tight because her husband has a business with a cement pump, and bad weather makes it tough.
I can't just offer her money anymore because she won't take it. She says, "Dad, if you saw the list of loans you've given me, it's overwhelming." So, we find ways to help differently. For example, I'll say, "The social media side of the business is really being neglected. We're just too busy." She'll ask, "Do you really need this? Or are you just giving it to me? If I didn't say yes, would you be hiring someone?" I tell her I swear we would hire someone. That's what it takes to help her now. I can't fool her—she'd know if we didn't really need it done.
How can networking with successful individuals benefit entrepreneurs?
I had an unusual experience in college while trying to get a job as a loan officer. I was part of the college's marketing club and eventually became one of its executives. Jim Rohn came to speak to us, and during his speech, he said something that stuck with me: poor people should buy rich people dinner. Instead of looking for a handout, take someone wealthy to dinner. Watch how they shake hands, make eye contact, and ask them questions—you'll learn more from that than anything else.
After his speech, I thought, "You could do this." As he was packing up, I approached him and said, "You mentioned that poor people should..." He interrupted and said, "Oh, yeah. Are you asking me to lunch?" I said, "Yes." He replied, "In all the years I've done this, no one's ever come up and done what you just did." So, I ended up working for him for about 8 to 10 months while trying to get that loan officer job. I learned more from Jim than anyone else could have taught me.
One thing Jim said to me, which many may have heard, was, "Let's talk about your library. What's in your library?" He made me promise to read for 30 minutes every night until I reached the highest possible level of success. He recommended starting with Think and Grow Rich, a classic, and Psycho-Cybernetics, which was just becoming popular. He also spoke a lot about Silva Mind Control, developed by José Silva.
*This interview has been edited and condensed for clarity.*
