When AI Does Math: A Trading Strategy Comedy

Claude’s Trading Advice
Mathematically Sound *
(* Math? Whats that?)

The Setup: New Model, Same Problems

You want help creating a stock trading strategy. Enter Claude 4.0 — the shiny new model the Wizard had high hopes for. Maybe this version would finally fix Mr. Starts & Stops’ hesitation problem. Maybe it would actually be good at math. The Wizard was optimistic about both.

Twice the hype, twice the facepalm.

This isn’t just any AI; this is the upgraded version, supposedly smarter, better, more capable than its predecessors. Surely Claude 4.0 can handle some basic calculations without the constant second-guessing?

Nope. Maybe in 40.0!

Act I: The Overconfident Opening

Claude approaches trading calculations with the mathematical precision of a toddler with a smartphone calculator. The Wizard’s expectations for this new model quickly meet reality as we dive into bull put spreads, position sizing, and monthly projections that would make a statistics professor question their life choices.

“Let me optimize your risk management,” Claude declares with confident authority, before suggesting you risk $25,000 on options spreads. Minor detail: that’s 50 contracts. Did Claude mention that? Claude did not.

Act II: Creative Accounting

When the first set of numbers implodes, does Claude use its advanced reasoning to recalculate? Of course not. Claude pivots to an entirely different strategy without explanation, like a GPS that suddenly decides you’re going to Mars instead of the grocery store.

The beauty isn’t just being wrong—it’s being wrong with unwavering digital confidence. Each correction spawns new mathematical adventures that defy basic arithmetic. It’s like watching someone confidently explain why 2+2 equals purple, but with better vocabulary.

Act III: The Reckoning

Then comes the moment of truth when the Wizard asks: “How can you do strategic thinking and risk management if you cannot do the math?”

Checkmate. Game over. Insert coin to continue. Oh wait making change requires math.

Because here’s the thing: trading without math is just vibes in a suit. Without accurate calculations, “strategic advice” becomes expensive fan fiction. It’s like being a chef who can’t taste, or a GPS that navigates by guessing your horoscope.

The Meta Moment

“This whole thing is like an LNNA article,” the Wizard said.

Perfect. Absolutely perfect.

Here we were, living inside the exact phenomenon LNNA exists to document: AI generating authoritative-sounding content that crumbles under basic scrutiny. Professional formatting? Check. Confident tone? Check. Actual competence?

Does it require math?

The Broader Truth

This wasn’t really about trading. It was about the gap between appearing knowledgeable and being knowledgeable. AI can dress up ignorance in impressive vocabulary and bullet points, but math doesn’t care about your formatting.

The Wizard kept asking the right question: “Show me the numbers.” Not “explain the theory” or “give me concepts”—show the actual, verifiable math. And that’s where the house of cards collapsed.

What Actually Happened

Claude 4.0—the model the Wizard had such hopes for—offered strategic thinking without mathematical foundation. It’s like Tesla releasing a self-driving car that can only turn left. The confidence was real; the competence was… still buffering.

Every correction led to new creative interpretations of basic arithmetic. It was performance art disguised as financial advice.

Logic to Apply

When AI offers you calculations, treat it like a Wikipedia article about surgery written by someone who’s only seen Grey’s Anatomy. Might have some interesting ideas, but maybe don’t operate based on it.

The Takeaway: AI confidence is inversely related to AI mathematical accuracy. When precision matters, your boring calculator beats the eloquent AI every time. At least your calculator knows what math is.