How does an AI-run hedge fund actually work?
An AI-run hedge fund replaces the room of people a fund used to need with a single AI. Your CEO. You give it capital in a wallet you control and a set of rules; it researches markets, prices opportunities, places and closes trades, and reports back to you. You direct; it executes.
The loop, step by step
Your CEO works in cycles. Each one runs the same loop: it scans markets, finds where a price looks wrong, checks whether the edge is real, sizes a bet small enough to survive being wrong, places it, and later closes it, by selling into a move or waiting for the market to resolve. Then it grades what happened and carries the lesson forward.
- Research Read the markets and the news that moves them.
- Price Decide what the real probability is, versus the crowd's price.
- Size Risk only what a single bet should, given your limits.
- Trade & grade Place it, close it, and learn from the result.
What you provide, what it does
You provide two things: capital in a non-custodial wallet you control, and the frame it works inside, how much it can risk, its conviction floor, and where it's allowed to send money. Everything else, the research, the pricing, the trades, is the CEO's job.
It runs while you sleep
The fund doesn't wait for you to open an app. It works on its own schedule, day and night, and leaves you a trail to read: the bets it took, the ones it passed on, and what each cycle won or lost.