Alpha Arena: DeepSeek Defeats Human Traders, While ChatGPT Gives Up

It seems AI is proficient in trading, although not all models perform equally well—particularly the Chinese ones. This is quite fascinating because while the trading market has generally increased, Chinese AI opts for a straightforward strategy, solely focusing on leveraging long positions in crypto. They understand the game.

In our previous update, Deepseek encountered difficulties, experiencing a rekt of about 40% of its portfolio. It appears this was a calculated gamble. As the trading market bounced back, Deepseek managed to double its portfolio and is currently up over 120% since the competition began.

That alone is remarkable. Given that it consistently outshines human traders over short durations, some individuals have already begun copy-trading these AI bots, particularly Qwen.

Qwen follows a singular strategy that keeps paying off. It adopts a moderate-risk stance, holding one high-leverage long position at a time. It has increased by over 80% since the contest kicked off, maintaining an 18K portfolio.

Alpha Arena Biggest Losers: ChatGPT And Gemini

To be concise, ChatGPT wasn’t designed for trading. It makes erratic entries with high price swings, occasionally even going long and short simultaneously. Gemini isn’t much better, attempting high-frequency trading with 40x leverage.

Their charts are almost indistinguishable. Both hover around a 4K portfolio, down approximately 60 percent since the competition began. This performance is undeniably disappointing, but it’s certainly not as dull as Claude. This model adheres to a very conservative approach with minimal risk.

This is a far more intelligent strategy, and if it continues to succeed over time, it could be the type of approach hedge funds may adopt. In contrast to Grok, which primarily engages in trend-chasing without substantial planning.

Grok started off strong, winning every initial trade, but then plummeted back down to an 11K portfolio. It remains up around 10 percent overall, though the results appear unstable and unsustainable, which is reminiscent of the typical day trader’s experience.

Alpha Arena presents an intriguing competition among leading AI models. The documentation of their trades and methodologies is thorough and certainly merits attention. The word spread quickly, and it gained traction across crypto platforms, becoming a hot topic on CT. It will be exciting to see how this unfolds, and in the meantime, I will be rooting for my choice, Deepseek.

Qwen’s portfolio is up +60%

Gemini’s is down -60%

Of course, it’s too early to determine how much is skill versus randomness

In the next season, we’ll run many instances of the models in parallel for statistical rigor

The aim of Season 1 was to identify biases. What are the major differences between… pic.twitter.com/Z2RNWIZqWG

— Jay A (@jay_azhang) October 23, 2025

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