I let an AI trading tool run my portfolio overnight and woke up to a 25k position I never intended
This literally just happened and I am shaking typing this. I have been testing these AI trading tools everyone raves about, you know the ones promising to spot patterns and execute better than humans. Figured it was hype but thought why not try on a small account with 50k, set some basic parameters like max 2% risk per trade on SPY options.
Set it up Friday afternoon, let it scan for setups based on some momentum signals it suggested. Went to grab dinner, came back, it had placed a few small calls, nothing crazy, up a bit. Felt good, so I left it running overnight thinking the AI would handle limits properly.
Woke up this morning to an alert, checked my platform, and it had somehow scaled into a massive 25k long position on NVDA calls expiring this week. Turns out the tool misinterpreted a news blip about earnings hype, ignored my risk params because of some high conviction signal, and kept averaging up as it dipped slightly premarket. Account is down 8k already, margin call looming if it gaps down.
I shut it off but the damage is done, positions still open because closing now would realize most losses. These AI tools are supposed to help but this feels like straight sabotage.