Pluto.fi Review - The AI Investment Philosophy

Founded by an investment trio, Jacob Sansbury, Dakota McDaniels, and Caroline Mendel, Pluto democratizes trading by providing powerful tools to everyone, not just the Wall Street elite.

Pluto is backed with an AI co-pilot named after the philosopher Plato that can be utilized to turn the platform into a data-rich trading environment suited for extensive automation.

In our review of Pluto.fi, we have covered what this new platform is all about, how their AI-supported app helps you develop sound investment strategies and what are its main features.

The Power of Automated Investing with Pluto

All strong stock trading strategies work in-tandem with the ability to quickly execute a sale or a purchase of an asset, which is why traditionally a lot of effort went into the execution of timely trades.

With automation however, these tasks can be handed over to machines, such as Pluto’s AI algorithm, that can implement well-thought out strategies in a blink of an eye, ensuring timely acquisition or sale of stocks, 24/7.

Automation in Pluto relies on a pre-set trading strategy that dictates the execution of specified actions when the right predetermined conditions are met. The system includes:

Sections (Rules)

Segments of your grand strategy fall under sections that contain a preset of triggers. You can customize each section with a specified set of rules that will execute trades based on preset conditions set for that section.

Triggers

Pluto offers a variety of triggers that can help you customize your trading conditions. Triggers are a way for Pluto to make decisions based on real-time data. For example, you could set a trigger to sell a company stock if they missed earnings at the end of a current quarter.

Actions

The list of available actions for automation include: Buy, Sell, Short and Cover, and they can be set up alongside relevant triggers to fully automate the trading process.

Match Types

This setting allows you to control the number of triggers required for an action to occur, giving you a lot of flexibility when creating your trading strategy. 

The Match Types include:

• All: All triggers within the section must be met for the action to be performed.
• Some: At least one trigger within the section must be met for the action to be performed.
• None: None of the triggers within the section must be met for the action to be performed.
• At least: A specific number or a weighted number of triggers within the section must be met for the action to be performed.

Automated vs Manual Trading

As already mentioned, automation has a lot of benefits when it comes to trade execution. In recent years it has become the staple of everyday trading and with the arrival of AI, Wall Street is defining the use of automation and instantaneous data processing, the difference now being that these systems can be implemented and used by everyone, through platforms like Pluto.

Trade Consistency With Pluto

Investment strategies can easily fail due to a few integral factors of manual trading - emotion, lack of confidence or overconfidence. Pluto ensures that a preset strategy will be executed without second guesses or risky moves, allowing for meaningful post-trade analysis helping you polish future trades based on the full outcome of your implemented strategy.

Data Analysis and Well-Informed Trading

Through its AI integration, Pluto can save you a lot of research time and aggregate important, stock-relevant data about companies from news outlets, social media, websites and more, to give you a breakdown of the current trading environment so that you can create strategies that are suited for active trends.

Instantaneous Trades

Compared with manual trading, automations can execute trades instantly when the right conditions are met. Pluto can ensure that you don’t miss out on the best calls, which with manual trading can be a few seconds too late.

Access to Backtesting Through Pluto

Pluto can aggregate historical data that allows you to run tests on investment strategies, giving you an evaluation and prediction on how well your strategy might perform. Without tools like Pluto, this is left to your own deductions.

Risk Management and Safety

Pluto provides risk control for your strategies and portfolios by allowing you to set up shields that are preset conditions which protect your investments. If a stock underperforms and falls below a threshold you’ve defined, Pluto's automation can sell the position and stop trading the asset for a predefined time period, helping you avoid bigger losses.

Diversification and Manageable Portfolio Scaling

Through automation, you can be active in multiple markets with many varying strategies. Manual trading is too inefficient to handle so many vectors. Pluto can help you leverage the benefits of a greatly diversified portfolio while helping you stay in control over your trading strategy.

Automation With Pluto’s Plato

Plato, the AI co-pilot integrated into Pluto’s platform, can help you set up automations with a few simple prompts. You don’t have to have coding experience and understand Python to implement a strong automated investment strategy. Plato can work with you to give you important data, test and develop strategies with key triggers and parameters all through a few simple prompts powered by GPT-4.

Plato is available on your portfolio page, automations page and Pluto’s homepage. You can talk to Plato directly by:

• Asking questions
• Giving instructions
• Testing strategies
• Getting recommendations
• Getting real-time updates

An Example of How Plato Works

You can set up an investment strategy by simply prompting Plato to create a new strategy and writing something along the lines of:
“Hey Plato, let’s create a new investment strategy.”

You’d probably want to follow this up by creating a section. Simply continue the conversation by writing a prompt like:
“Plato, let’s add a new section to this strategy.”

Once you have a section you can set up triggers. For example:
“Plato, set a trigger if the price of MSFT goes under $200 for at least an hour.”

You’d want to follow this up by setting up relevant actions:
“Plato, add an action to buy 10 shares of MSFT.”

Following actions you’d want to set up a match type which in this case will be ‘all’ given that we’ve provided just one condition:
“Plato, set the match type to ‘all’.”

You can also secure your investment by setting up a shield:
“Plato, set up a shield to sell this position and stop trading MSFT for a week if the trade is down over 2%.”

You can then test this strategy before it goes live by asking Plato to test it from a certain point in time in the past, say January 1st to December 31st of 2022.

If you’re happy with the strategy, going live is as simple as telling Plato to activate the strategy for your live portfolio with the amount of money you wish to invest.

There really is no end in your interaction with Plato. The AI assistant is there to streamline automation so that you don’t have to code it yourself.

Pluto’s Pricing Model

Our Final Thoughts on Pluto.fi

Pluto is a new type of product which we haven’t seen before, as most AI trading tools are. We think that in this new era of investing, tools like Pluto, along with its AI co-pilot will help everyday investors compete with the Wall Street elite. 

Pluto itself is a very new concept, tool and company, and we advise all our readers to carefully research their investment strategies and take AI advice with a grain of salt. There are a lot of important vectors to consider and even though AI has come very far, the decision making and contextualizing of the investment environment is still on the trader.

Pluto is a great tool when used with this, aforementioned, mindset. It can automate and streamline tedious tasks and provide a rundown of important information without the requirement for coding knowledge, but it shouldn’t be relied on to make the right investment call, responsible investing is still on the investor.