Signals & Sentiments: How GPT-2 and FinBERT Beat Buy-and-Hold on the S&P 500
TL;DR for operators A recent arXiv paper tests whether financial-news sentiment from GPT-2 and FinBERT can improve S&P 500 trading when combined with technical indicators and time-series models.1 The strongest reported strategy, GPT-2 sentiment on Dow Jones news combined with VW MACD, returns 5.77% over the May 10-August 7, 2024 test period. The buy-and-hold benchmark returns -0.696% over the same window. ...