Rigatoni Capital Podcast
How Robinhood AI Agents Could Run a Kelly Criterion Trading Strategy
So is it theoretically possible that Robinhood's new AI agents could eventually run a Kelly Criterion style strategy for you, sizing every trade at a fixed percentage of your bankroll off an algorithm you write yourself? It is a compelling thought for anyone who wants exposure to active trading without sitting in front of charts all day, because the agent runs your scanner and your rules autonomously while you keep your nine-to-five or play 18 holes of golf. As cool as that sounds, I want to be clear that the expenses and token fees involved would probably drag your performance, so I am not claiming this is a successful strategy through Robinhood agents today as it stands. Of course, there could be many errors and the algo written would have to be quite extensive and would require ongoing recursive learning to ever compete on a professional level like Jane Street or Citadel. What makes the conversation timely is how fast the agent race is moving. OpenAI stumbled through its Dottie demo while Meta ripped on that news, and the Wall Street Journal finally caught up to what I have been saying for a week, that AI agents could quietly move cash out of low-yield bank deposits and into higher-yielding accounts. That is the deflationary and disruptive undercurrent I care about as a long-term investor, and it is why I keep telling you there is no excuse to leave money sitting in a checking account earning nothing. Also, accepting this is quite a reality now going forward, we need to think twice before we purchase any old-economy bank or insurance company or stock. Meanwhile, Core PCE came in below every one of the 51 forecasts Bloomberg tracked at 3.0% year over year, Fed hike odds plunged on the softer print, and Trump's White House AI summit leaned toward voluntary standards and faster data center build-outs, which is a friendly read for AI CapEx. And yes, the moment everyone fixated on was Dario Amodei, the founder of Anthropic, appearing to injure his foot on the way into the room. Rigatoni Capital is a daily morning podcast for long term, buy and hold investors. You can find every episode on Substack , YouTube , Spotify , Apple Podcasts , Amazon Music , and iHeart Radio . This is not a show for short term traders or people looking for quick wins. Every morning I go through the most important headlines in finance, markets, and macro, and call out fake narratives in the financial media so you know what actually deserves your attention and what to ignore. Subscribe to Rigatoni Capital on Substack: https://rigatonicapital.substack.com Disclaimer: This blog is for informational purposes only and does not constitute financial advice. All opinions are my own, and I am not a financial advisor. The information provided reflects my personal views and is intended to encourage discussion and thought among readers. Investments involve risk, including the loss of principal, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified professional before making any financial decisions. Timestamps:0:00 Welcome & PCE Day0:47 Trump's White House AI Summit2:20 Anthropic's Dario Amodei Gets Injured3:30 Trump & Zuckerberg Bromance4:10 Fed Rate Hike Odds Plunge5:27 Meta Muse & AI Deflation6:22 OpenAI's Dottie Fumbles While Meta Muse Rips9:18 WSJ: AI Agents Threaten Bank Deposits11:34 Robinhood Unveils AI Agents13:17 Robinhood Agent Running Kelly Criterion18:43 Robinhood Agents Demo21:11 PCE Falls Below Every Forecast #investing #stocks #finance #wallstreet #stockmarket #investor #wealth #money #financialfreedom #passiveincome #dividends #compounding #longterminvesting #buyandhold #valueinvesting #portfoliomanagement #bitcoin #crypto #macro #Nasdaq #SPY #QQQ #SP500 #Robinhood #AIagents #KellyCriterion #MetaMuse #OpenAI #PCE #Anthropic #RigatoniCapital $HOOD $META $NVDA $MU $QQQ $SPY $BTC
