Generate Insane Trading Returns with ChatGPT and TradingView
Summary
TLDRThis video demonstrates how to leverage OpenAI's Chat GPT to develop a Bitcoin trading strategy without programming knowledge. The host guides viewers through using Chat GPT to create a simple trading algorithm in Pine Script on TradingView. The tutorial shows how to modify existing strategies, like the Super Trend, to optimize performance. It also explores using technical indicators like RSI and ADX to refine the strategy, ultimately aiming to turn a $1,000 investment into over $1 million through backtesting.
Takeaways
- 😀 The video demonstrates using OpenAI's Chat GPT to develop a Bitcoin trading strategy without prior coding knowledge.
- 🔍 The presenter explores the potential of Chat GPT to create an outline or introduction for the video, showcasing its capabilities.
- 💡 Chat GPT can translate natural language into computer code, which is particularly useful for creating trading algorithms.
- 📈 The video emphasizes the accessibility of trading strategy creation, making it available to both experienced traders and beginners.
- 🌐 TradingView is introduced as a platform for charting and backtesting trading strategies, with a focus on its strategy tester and Pine script coding.
- 🛠 The process of coding a simple long-only trading strategy using the 50 SMA in Pine script is shown, highlighting the iterative nature of coding with Chat GPT.
- 🔎 The video explains how to use Chat GPT to understand and modify existing trading strategies, such as the Super Trend indicator.
- 📊 The presenter discusses optimizing strategies by adjusting parameters like initial capital and leverage to meet specific financial goals.
- ⚠️ The importance of articulating clear instructions to Chat GPT for effective strategy creation is highlighted.
- 🚀 The video concludes with a significant achievement, turning an initial $1,000 into $17.4 million through strategy optimization.
Q & A
What is the main goal of the video?
-The main goal of the video is to demonstrate how to use OpenAI's Chat GPT to develop a Bitcoin trading strategy, with the aim of turning a thousand dollars into over a million dollars.
How does the video suggest using Chat GPT for trading strategies?
-The video suggests using Chat GPT to create an outline or introduction for the tutorial, and to generate or modify trading algorithms in Pine script without any programming experience.
What is the role of TradingView in the video's strategy?
-TradingView is used as the platform for charting, testing, and backtesting the trading strategies developed with Chat GPT, particularly utilizing its Strategy Tester and Pine script editor.
Why does the video emphasize the importance of being explicit with Chat GPT?
-The video emphasizes the importance of being explicit because Chat GPT cannot read minds and requires clear instructions to generate accurate trading strategies.
What is the significance of the 'super trend' strategy mentioned in the video?
-The 'super trend' strategy is significant because it is one of the best-performing strategies identified in the video, with a return of 478 percent, and is used as a basis for further optimization.
How does the video address the issue of over-optimization in trading strategies?
-The video addresses over-optimization by showing the process of iteratively improving the strategy and warning viewers about the potential pitfalls of overfitting the strategy to historical data.
What is the role of technical indicators like RSI and ADX in the video's strategy?
-Technical indicators like RSI and ADX play a role in identifying overextended prices and market trends, which are then used to refine the trading strategy to avoid losses and capitalize on trends.
How does the video suggest improving the ADX indicator's responsiveness?
-The video suggests making the ADX more responsive by adjusting its parameters, such as lowering the signal threshold to 20 and shortening the period to make it more lenient and reactive to market changes.
What is the final outcome of the trading strategy presented in the video?
-The final outcome of the trading strategy is an over-achievement of the initial goal, with the strategy turning a thousand dollars into 17.4 million dollars.
What are the two key takeaways emphasized in the video?
-The two key takeaways are the utility of Chat GPT for strategy development and the empowerment it provides to traders, and the importance of leveraging tools like Chat GPT to stay competitive in trading.
Outlines
🚀 Introduction to Developing Bitcoin Trading Strategies with Chat GPT
The speaker introduces a project to develop a Bitcoin trading strategy using OpenAI's Chat GPT to turn a thousand dollars into over a million. Despite not preparing for the video, they demonstrate how Chat GPT can be used to create an outline or introduction. The tutorial aims to show viewers how to use Chat GPT to develop custom trading algorithms without programming knowledge, appealing to both experienced traders and beginners. The speaker highlights the accessibility of Chat GPT in creating profitable trading strategies based on backtesting.
💻 Exploring TradingView and Pine Script for Strategy Development
The video moves on to using TradingView, a popular online trading platform, to develop the trading strategy. The speaker guides viewers on how to access the Pine Script editor and use the strategy tester. They emphasize the simplicity of coding with Chat GPT, which can translate natural language into executable code. The speaker then demonstrates how to use Chat GPT to create a basic long-only trading strategy using a 50-day Simple Moving Average (SMA) in Pine Script V5. However, they encounter errors when trying to compile the code, highlighting the need for troubleshooting and understanding the code.
🔍 Refining Strategies with Chat GPT and Public Library Resources
The speaker discusses the importance of being explicit when asking Chat GPT to create a trading system. They suggest using Chat GPT to research and understand existing strategies, then iterating upon them. An example is given where the speaker copies a strategy from TradingView's public library, asks Chat GPT to explain the Pine script, and then modifies it to suit their needs. The video demonstrates how to transform a long-short strategy into a long-only strategy by using Chat GPT to close long entries instead of going short.
📈 Optimizing Strategy Performance and Setting Trading Parameters
The focus shifts to optimizing the trading strategy's performance. The speaker explains how to use the strategy tester to analyze the equity curve and identify issues such as losing money on the short side. They modify the strategy to be long-only and demonstrate how to set initial capital, margin calls, and the amount of equity used in the strategy. The speaker also discusses the importance of understanding how much leverage is being used and how to simulate margin calls using Pine Script.
📊 Incorporating Technical Indicators to Improve Trading Strategy
The speaker aims to improve the strategy by identifying overextended prices and market trends using technical indicators like RSI and ADX. They show how to integrate these indicators into the Pine script and use Chat GPT to understand and modify the code accordingly. Despite facing challenges with the ADX indicator, they persist in optimizing the strategy. The video concludes with a successful backtest, showing a profit of over 17 million dollars,远超 the initial goal. The speaker emphasizes the importance of using tools like Chat GPT and warns against over-optimization.
Mindmap
Keywords
💡Chat GPT
💡Bitcoin trading strategy
💡TradingView
💡Pine Script
💡Backtesting
💡Technical indicators
💡Overbought and oversold
💡ADX (Average Directional Index)
💡Long-only strategy
💡Over-optimization
Highlights
The video aims to turn $1,000 into over $1 million using OpenAI's Chat GPT to develop a Bitcoin trading strategy.
Chat GPT can create an outline or introduction without prior preparation by the user.
Chat GPT can translate natural language into computer code for trading strategies.
Non-traders can use Chat GPT to generate a momentum strategy with specified parameters.
TradingView is introduced as a platform for charting and backtesting trading strategies.
Pine script in TradingView is used for coding trading strategies.
Chat GPT's ability to explain its code and provide well-commented scripts is highlighted.
The video demonstrates how to use Chat GPT to create a simple long-only trading strategy using the 50 SMA.
Chat GPT's strength lies in improving upon existing content rather than creating from scratch.
The public library of strategies on TradingView can be iterated or improved upon using Chat GPT.
Chat GPT can explain Pine script code to help users understand trading strategies.
The video shows how to modify a strategy to be long-only instead of long-short to improve performance.
The strategy tester in TradingView is used to analyze and optimize the trading strategy.
Chat GPT is used to identify technical indicators that can identify overextended prices.
RSI andADX indicators are incorporated into the strategy to avoid overextended and ranging markets.
The video concludes with a strategy that turned $1,000 into $17.4 million, demonstrating the potential of using AI in trading.
The importance of using AI tools like Chat GPT in trading is emphasized for both novices and experienced traders.
The video serves as a cautionary tale against over-optimization in trading strategies.
Transcripts
hello everyone today we're going to take
a thousand dollars and turn it into over
more than one million by using open ai's
chat GPT to develop a Bitcoin trading
strategy for us there's only one problem
is that I didn't prepare for this video
but then again why would I I can just
pass chat GPT to create an outline or an
introduction for me let's see how it did
hi there and Welcome to our tutorial on
using chat GPT to develop trading
strategies in this video I'll be showing
you how to use chat gbt a powerful
language model developed by open AI to
create custom trading algorithms without
any programming experience whether
you're a seasoned Trader looking to
automate your trading strategy or
complete beginner looking to learn about
trading this video is for you so sit
backs and and relax and get started with
chat GPT so pretty darn good right so
essentially we can use natural language
or simply ask the computer something it
can then take that something and
translate it into computer code and give
us an answer back now in regards to
trading we can have non-traders ask hey
give me a momentum strategy using these
parameters and it'll do it for us and
you can actually use tools like training
view which already has the data and
everything built in to test it for this
channel typically I'm building databases
by doing python all this other stuff and
sometimes that's not very accessible to
many Traders but this really opens up
the door for anyone who wants to be able
to create a profitable trading strategy
based on back test and in this video I'm
going to teach you exactly how to do
that so that way you have confidence
when going into your future trades
now the first thing that we're going to
want to do is go over to tradingview.com
tradingview.com is the world's most
popular online trading platform you can
chart pretty much the price of anything
but there's also Community tabs there's
news feeds there's also custom
indicators and even mobile phone alerts
but for our intents and purposes we are
going to be using the strategy tester
and coding in Pine script so you want to
go down here and click on the pine
editor here you may see a blank strategy
if you don't just go to open and then
click create new strategy and here will
be the boilerplate code but again don't
worry we're not really going to be doing
the coding chat GPT we'll be doing that
coding for us so let's head back over to
chat GPT and create our first trading
strategy now the biggest challenge any
new user of chat GPT or any other NLP
model is going to face when creating a
trading system is articulating exactly
what they want if you want a 50-day
simple moving average you have to tell
chat GPT that it cannot read your mind
if you want chat gbt to give you a
trading strategy using a crossover of
the 12 and 26 EMAs well fantastic but
you have to be explicit about it in our
case we want to start off as simple as
possible so I'm going to tell chat GPT
exactly that right give me an extremely
simple long-only trading strategy that
uses the 50 SMA
in Pine script V5
and now the great thing about chat GPT
is it'll actually explain what it's
doing and then provide you the code
sometimes the explanations at the top
sometimes at the bottom and usually it's
well commented so we're going to copy
this code and then we're going to take
it into trading View and run it now all
we need to do to get this code to
compile is paste it into the pine editor
and click save if you don't have your
Pine editor open you'll want to click
the pine editor down at the bottom of
your screen here and then if you don't
see any code here click open and create
new strategy and this is the boilerplate
strategy now we can go ahead and paste
all of our code from chat EPT here click
save and unfortunately we'll just call
this a chat GPT Bitcoin strategy
it doesn't work it says try to add this
or that so let's undo this I know it
doesn't have this strategy code here
which we we need for it to run so I'm
going to paste the code under here and
then click save and we're going to start
seeing more errors because we're not
using ta now you're going to say wow I
thought that chatgpt was going to be the
new thing and now I have to like figure
out how to code I have to troubleshoot
all this well
no you don't there's actually a better
way to do this now it's essential to
understand that chat GPT is good at
creating code or content from scratch
but it's much much better at taking
existing content such as you know
natural language or code and improving
upon it we use chat EBT to kind of
research an idea of what we want and
then we can go to the public library of
strategies provided by training View and
iterate or approve upon it so you can
see here I can click on this bar up down
strategy and you know it looks like it's
losing some money but you know maybe
this is something that we're interested
in we can go up here click the brackets
here for the source code
take this
copy it go back to chat GPT say please
explain this
Pine script through me
and it will actually tell you what it
does so if you have a question on how a
strategy works because you don't
understand the code yet you can use chat
GPT and one crazy thing that happens is
after you do this for a while you'll
actually be able to read this code now I
don't want to use this bar up down
strategy let's take a look at some other
strategies here's some Bollinger band
strategy so I'm going to look for a few
or strategy that actually performs well
you know
you know that's a almost one percent
stochastic
super Trend okay so it looks like we got
a winner the super trend is up
478 percent so we'll start with the
super Trend indicator to see if we can
get it to over a million so we'll click
on indicators
go to super Trend and here we have it
and now we can go ahead and grab this
code
I'll say I'm just hitting Ctrl a and
Ctrl C or you can select the whole thing
cut copy and I'm going to go to open
strategy
I'm going to then paste this save it and
I'm going to call it super trend
Bitcoin strategy and click save we need
to get an understanding of the super
Trend strategies return profile when
trading Bitcoin we know that when we
went to the indicator library and
selected strategies that it was one of
the best performing strategies if not
the best performing strategy available
to us but without actually looking at
the returns we don't know how to
optimize it we can do that by going to
strategy tester we can see an overview
here where we can see a pretty nice
Equity curve a pretty large drawdown you
know we've got 52 average bars in a
trade with 79 total closed trades and 44
be profitable if we go to Performance
summary we can see a glaring issue that
we can potentially fix I'll zoom in to
make it a little easier to see but
basically we're making a lot of money on
the long side and losing a lot of money
on the short side now not only are we
losing this money but it's not available
to us on the long side to compound so
what we'll do is we'll change this
strategy from a long short strategy to a
long only we can do that by going to the
Pine editor selecting all of this Ctrl a
and control C or you know selecting all
of it and clicking copy and then what
we're going to do is we're going to go
to chat GPT and ask it to close the
position whenever the super Trend
strategy changes Direction instead of
shorting so let's reiterate that to chat
GPT we'll say update the following
hindscript to close long entries
instead of going short then I'll paste
the code and henceforth I'm going to
just show you what I type into chat GPT
and then I'll fast forward to the output
so I'm not wasting your time we'll take
the code we'll copy it and then we'll
paste it back into trading View Press
Ctrl a in the pine editor then Ctrl V to
paste it we see that our code is updated
we then press save to try to compile it
we don't see any errors which is
fantastic which means we think that chat
GPT successfully changed our code simply
by us giving it Direction now let's
validate that these strategy results are
improved we should see that there are no
losses on the short side or even no
trades on the short side we go to the
strategy tester we then can look and see
that our strategy did change we now have
a 55 percent win percentage and
underperformance summary we don't see
any short losses now I promised you that
we're going to take a strategy from 1
000 to well over 1 million so now what
we're going to do do is update the
initial Capital to see how far away from
that Target we are
but we're not going to use chat GPT for
this because I don't want to do you a
giant disservice recall earlier that I
said the most challenging thing a new
Trader will encounter when trying to
create a trading strategy with an NLP
model like chat GPT is articulating
exactly what they want and if you're not
able to at least get the information out
of pinescript that you need you're not
going to be able to design the trading
system that you want but don't worry all
you need are two fingers right it's not
difficult you can see these blue
keywords remember we're taking existing
strategies and indicators out of the
library pasting what we want or asking
Chachi PT to modify them and then what
we can do is find these blue keywords we
just press control and click and we'll
pull up the pine script reference manual
and then you can see all of these
various properties and scroll down and
get the information that you need so
what we need to do is we need to set
that initial capital and we also need to
be able to set up Margin calls because
we can't just leverage without any
margin calls and understand how much
Equity that we're going to use now I
already understand this information so
I'm not going to waste your time here
but we'll just run through one because I
want you to get comfortable with this so
we'll go and look at the margin long
property here it is and it says margin
long is a percentage of the purchase
price of a security that must be covered
by cash or collateral for long positions
must be a non-negative number right that
makes sense and it's used to simulate
margin calls and explained in The Help
Center so you can click on that if you
want more information but let's go ahead
and now set the initial Capital the
Margin Call and the amount of capital
used
so take initial Capital I'll copy this
and this is getting pretty long so I'm
going to press comma hit enter tab space
paste the initial Capital we want a
thousand we also want the default
quantity value to be a hundred and then
we also want margin long
now obviously we've got some exchanges
that offer 1 to 100 leverage we'll just
do one to ten and then what we'll do is
we'll save this and we'll see how this
adjusted our strategy we'll open the
strategy tester and we'll see that
overview looks like we've already taken
a thousand dollars in capital to over
2.3 million so if we met our goal I
don't want to stop here I don't know
about you there's a lot more that I want
to talk about so we'll change the 1000
to 1 million dollar trading strategy to
the 1 000 to 10 million dollar Bitcoin
trading strategy now how can we improve
upon this strategy well if I look here
when we're looking at this Equity curve
it's going up and then we start to see
some downward movement here if I click
on this we can see here that Bitcoin I'm
going to zoom out a little bit we can
see that we're in a pretty good uptrend
and it looks like we're you know we're
also losing money on this this downtrend
here so there's two things that I want
to resolve the first is we want to not
be in Bitcoin when it's over extended
and secondly when the trend is down we
want to exit right so let's go ahead and
use chat sheet PT our friendly research
assistant to figure out how we might be
able to do that now it seems like chat
gbt is experiencing some exceptionally
high demand let's hope it gives us the
answer we're looking for anyways we will
ask for quick answers and we'll say give
me a list without descriptions
of technical indicators that are
excellent
or identifying
over extended prices
hopefully it'll give us a few all right
so RSI stochastic oscillator Williams
Bollinger Bands perfect we'll use the
RSI and our strategy to identify
overextended prices so what I'll do is
I'm going to go up here and edit this
and say give me a list without
descriptions of technical indicators
that are excellent for identifying
when a market is trending
and click save and submit and we'll see
what happens moving average RSI
Bollinger Bands macd parabolic SAR
Fibonacci retracement all of these okay
we've got the adx so what we'll do is
we'll use the RSI to identify over
extended prices and we'll also use the
adx to determine whether or not we're
ranging or trending and fit that into
our strategy to see if we can get up to
that or maybe even surpass that 10
million dollar mark we'll start by
adding the RSI and potentially get us
out of overextended Trades we see that
the RSI is already charted up here and
we can be absolute maniacs and click on
the source code here copy all this and
paste it into our Pine script or ask
Chachi BT to massage this code into our
existing strategy but that is way way
way too difficult there's a much better
method let's open up our previous
strategy we'll click open you can use
either the recently used or go to my
script here I see the super Trend
Bitcoin strategy I'm going to click on
that and remember I said you can access
everything that you need to access by
control clicking on any keyword which is
highlighted in blue essentially it'll
pull up the pine script reference manual
if for some reason you don't want to
access it that way you can always click
this triple Dots here and click the pine
script reference pop-up now I want to
know about the RSI so I'll just type in
RSI we see it as the first result which
is already being displayed and it tells
you everything that you need to know
about the RSI if you have questions you
can literally copy and paste this in the
chat GPT and explain it to you I'm going
to copy this code right here we'll use
the close as the source and the length
you know we'll use probably a little bit
longer because I want to try to capture
you know make sure that there's room to
run so what we'll do now is we'll scroll
down to where we enter
now we could ask Chachi PT to do this
for us but it is having some bandwidth
issues at the moment and you really
should get into the habit of being able
to read basic Pine script we'll say and
right so it has to have this direction
change and I'll paste this to TA dot RSI
close price and the is the value we're
going to calculate this off to close and
we'll say you know what 21 is less than
66. so we're saying that you know we
don't want to be overbought on a longer
term time frame but you know what I also
want to make sure that we're getting in
to the trade whenever there's a very
high RSI on the shorter time frame which
will essentially sort of mimic a
breakout and some serious buying
pressure we'll say close 3 is greater
than 80. now what I'm going to do is I'm
going to save this then we'll check the
results and we'll see if this solved the
issue with getting into and you know
getting out of I should say overextended
trades and then we'll see how we can
prove this strategy likely using the adx
to determine you know that downtrend and
getting out of that so I'm going to save
now and check out the results so go to
the strategy tester we see our overview
and it looks like we've made some
progress but I'm starting to get a
little nervous right so we're at three
million in profits we're not at 10
million plus yet I don't know if I'm
going to be able to get get us there but
I'm going to try my hardest we can see
that the equity curve is you know
fantastic and then all of a sudden we
have this drop off so click on this
again just to analyze it one more time
you know it looks like uh you know this
downtrend is really eating us up and
also this sideways action right so we'll
use RSI to try to negate some of this
downward pressure and then also use the
adx to make sure that we're trending and
not uh you know getting chopped up so
the way we'll do that is we'll go back
to the Pine editor and now the 80 well
let's first start off with the RSI
that's easy to do what we'll do is we'll
just add a longer RSI duration and say
that we have to be above you know 49
meaning that there's some buying
pressure and we're not constantly having
lots of cell pressure so we'll say ta
oops and ta dot RSI
use the close price we'll say
close we'll say 28 you know four weeks
is greater than 49 and then what we'll
also do is we're going to actually we'll
save that you know we'll save that now
and we'll check out our results and see
what happens here to see if we get rid
of some of that downward action and then
we'll handle the chop
click on the strategy tester and oh man
we're so close we went from you know
three million and change to 5.3 we're
now at a two-thirds win percentage and
we've still got a little bit of room for
improvement hopefully that'll get us
over that 10 million dollar Mark we can
go to the Pine editor uh click on
control click on any one of these
keywords so we can use input if we want
and you'll notice it just pulls up input
so whatever we're control clicking on
it'll pull up and then we're going to
type in adx
and you'll notice that unlike the RSI we
don't see it so what we'll do is we'll
go to the indicators metrics and
strategy to click on this go to
technicals and then we'll search for the
adx and you'll see here when we click on
average directional index adx it'll come
up on our charts we can click on the
source code and now what we'll do is
we'll copy all of this we don't need
indicator we'll just copy this you only
need one indicator or strategy and then
we'll go back to our original strategy
which is the super Trend Bitcoin
indicator I'm going to paste it you can
paste it pretty much anywhere above you
know where we're going to use it here
I'm going to paste it in here I don't
want to plot it
we can ask chat GPT and maybe we will
after this if we don't get it the whole
way what exactly this code is doing but
I know that the Sig is the signal and
you know we want it to be relatively
trending so we'll say and Sig is greater
than 30. and hit save and we'll see if
we get it there
come on baby oh no we went from millions
and millions to 62 000 yeah uh I guess
what are we gonna do now all right well
I think obviously that adx really messed
us up but maybe we should ask Chachi PT
how we can make it better right so we'll
say chat GPT how can we make the adx
more responsive right so clearly it took
us out of too many trades now I know
that you know and you can ask Chachi PT
this come on I know that you're you're
you're getting hit with all sorts of
requests but this is really important uh
give us an answer I know that uh the adx
strong trend is above 30 and a weak
Trend typically is above 20. so we'll
make it more lenient and we'll also do
what Chachi BT tells us to we'll shorten
the period uh and uh you know make it
more responsive and hopefully hopefully
that'll get us there so we'll go to the
Pine editor we'll go first down to to
the signal here will make it 20 to give
us you know to get us into more trades
and then we'll change this input length
how about we just cut it in half
and I'll click save and cross our
fingers because there's not much more
left in this YouTube video
come on come on oh we're 6.5 million
we're so close
all right one one final thing we'll see
uh we'll see what happens here let's
change this you know percent that we're
betting to 120. we'll hit save and I
think this is it guys let's see if that
last ditch effort worked and yes it did
we're in 17.4 million dollars not only
did we beat our initial goal of taking 1
000 to over a million dollars we then
had a stretch goal of taking a thousand
over to 10 million dollars let me
crushed that it's 17.4 million dollars
this is a fantastic video in what's
called over optimization and you can use
chat GPT to look that up if you have if
you're not sure what that means but this
video is about two Super Key takeaways
first Chachi PT is here to stay you need
to use these tools otherwise you're
going to fall behind you can be a no
programmer or a novice programmer and
actually back test strategies now you
don't have to just listen to someone on
Twitter and hope and pray that that
works right that's what my blog is about
analyzing Alpha is about finding these
amazing Traders and investors that are
somehow kicking the crap out of the
markets and determining how they
actually did that and now you are
empowered to be able to do this yourself
so this is fantastic and secondly for
experienced Traders it's amazing you
have all of this wealth of knowledge at
your fingertips so hopefully this video
was worthwhile to you I think it was a
17.472 million dollar knowledge bomb
everyone should be using chat GPT in
some way and both in their personal
lives in their trading and I hope to see
you in the next one thanks goodbye
Weitere ähnliche Videos ansehen
How I Use ChatGPT AI to Make a $1000 Per Trade Trading Strategy (STEP BY STEP)
The Simplest And Most Accurate Buy Sell Strategy On Tradingview
How To Create An App With CHATGPT For Free In Minutes
How To Build Your Own AI With ChatGPT API
How to Write Perfect English Emails with ChatGPT
Die einzige Trading Checklist welche du jemals brauchen wirst....
5.0 / 5 (0 votes)