Gemini's Stock Predictions: More Confident, More Wrong

aufgeblobt · reddit · 2026-07-15

The author created a continuous, time-locked stock prediction dataset to evaluate **Gemini 2.5 Flash** without look-ahead bias. Using Google Search grounding, the model predicted stock price directions, sentiment, confidence, and full reasoning chains for the next 10 trading days. The experiment ran from 2026-02-17 to 2026-05-19, exceeding 90 days. Key finding: **the more confident the model, the more it erred**. The overall Expected Calibration Error (ECE) was 0.217, with accuracy dropping to 28% in the 0.8–0.9 confidence range. A "downside risk" prompt aimed at correcting LLM over-optimism led to overcorrection, causing 'Down' predictions to exceed actual market downturns. Additionally, a "phantom pivot" detector—designed to catch hallucinated trend reversals—plateaued at roughly 50% on high-volume tickers. The author has open-sourced the methodology, dashboard, and results online, with a multi-model dataset available on HF.

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