DEEPSEEK V3 AI Turns ANY TradingView Indicator into a Winning Strategy! (FULL Guide)

Summary

In this video, the host reviews Deepseek AI's new 0324 release, testing its performance against a variety of challenges. The first test involves converting a volume-based indicator into a strategy, which Deepseek successfully handles, earning a 10/10 score. In the second, Deepseek attempts to improve a profitable stock strategy by adding new indicators. However, it overcomplicates the strategy, resulting in worse performance, earning a 5/10 score. Finally, the hard challenge asks Deepseek to create a profitable strategy from scratch, but it over-engineers the solution, scoring just 1/10. Despite these results, the host acknowledges Deepseek's potential when engaged more interactively.

Takeaways

• 😀 Deepseek AI is tested using a series of challenges to assess its ability to create and optimize trading strategies.
• 😀 The first challenge involved converting a trading indicator into a strategy that takes positions based on specific candlestick conditions.
• 😀 Deepseek successfully completed the first challenge, converting the indicator into a strategy with correct trade execution at the close of the bar.
• 😀 The second challenge required Deepseek to improve an existing trading strategy for SPY, focusing on increasing net profit, win rate, and profit factor.
• 😀 Deepseek's changes to the SPY strategy did not improve performance, with results showing reduced net profit, win rate, and profit factor.
• 😀 The third challenge involved creating a new profitable strategy for SPY that would beat the buy-and-hold return over a 30-year period.
• 😀 Deepseek's strategy for SPY was overly complicated, resulting in very few trades and a non-profitable outcome, with only three trades in 30 years.
• 😀 The third challenge received the lowest score due to the strategy's poor performance, but Deepseek's creativity and reasoning were praised.
• 😀 Deepseek achieved an overall score of 16/30, with strong performance in the first challenge but weaker results in the medium and hard challenges.
• 😀 Despite the mixed results, Deepseek's ability to think through trading conditions and create unique solutions was seen as a positive aspect.
• 😀 The creator suggested that with more time and interaction, Deepseek could improve and potentially produce better results in future challenges.

Q & A

What is the main goal of the video?

The main goal of the video is to evaluate Deepseek AI's performance in converting trading indicators into strategies, enhancing existing strategies, and creating new strategies from scratch. The video aims to test Deepseek across three levels of challenges: Easy, Medium, and Hard.

What is the significance of the 'Easy Test' in the evaluation?

The Easy Test involves converting an indicator (Volume Count IQ) into a working strategy. This test assesses Deepseek's ability to understand and execute simple tasks like creating trading conditions based on existing indicators, such as executing trades at the close of a bar.

What was the outcome of the Easy Test?

Deepseek successfully converted the Volume Count IQ indicator into a working strategy and handled the specified conditions well, such as executing trades at the close of the bar. The test was rated 10/10.

What does the Medium Test involve?

The Medium Test requires enhancing an existing strategy by adding new indicators and improving key performance metrics like Total P&L, Max Drawdown, Win Rate, and Profit Factor. The test measures Deepseek's ability to improve a strategy's effectiveness.

How did Deepseek perform in the Medium Test?

Deepseek added multiple indicators like VWMA, MACD, and other conditions to the strategy. However, the performance worsened, particularly in Total P&L and Win Rate, with only the Max Drawdown showing improvement. The test was rated 5/10.

What is the Hard Test designed to assess?

The Hard Test challenges Deepseek to create a profitable trading strategy from scratch for the SPY daily chart. It evaluates Deepseek's ability to generate new strategies that outperform a simple buy-and-hold strategy over an extended period.

What were the results of the Hard Test?

Deepseek's strategy in the Hard Test had poor results. It was overcomplicated, with too many indicators, resulting in only three trades over 30 years and no significant profitability. The strategy failed to outperform a buy-and-hold approach. The test was rated 1/10.

Why was Deepseek's performance in the Hard Test so poor?

The strategy created by Deepseek was overengineered, involving too many indicators and a lack of sufficient trades, which led to poor performance. The approach failed to achieve profitability and didn't generate enough trades to provide meaningful insights.

What overall score did Deepseek receive across all challenges?

Deepseek received a total score of 16/30 across all three challenges. The score reflects its strong performance in the Easy Test but a decline in effectiveness in the Medium and Hard Tests.

What recommendations were given for Deepseek's future use?

The reviewer recommended that Deepseek could improve its performance by adopting a more iterative approach to strategy refinement. While the tool showed creativity, it would benefit from careful optimization and fine-tuning to achieve better results in real-world applications.