How I'm Making Passive Income with ChatGPT AI

Summary

The video showcases a content creator in Japan sharing insights on how to generate passive income through crypto trading bots using ChatGPT. The creator explains two trading algorithms: one based on the 25-50 day simple moving averages for Bitcoin and another using an Ethereum squeeze momentum indicator. They provide a detailed walkthrough of setting up the bots on the Pionex platform, automating trades, and generating income without technical expertise. The video also highlights the potential of trading algorithms and invites viewers to explore the platform for bonuses and passive income opportunities.

Takeaways

• 🌍 The speaker is in Japan and emphasizes the value of achieving location freedom.
• 💰 The video is about generating passive income using automated crypto trading bots.
• 🤖 The speaker uses ChatGPT to help write and implement trading algorithms.
• 📈 The primary trading strategy is based on the 25 and 50-day Simple Moving Averages (SMA) crossover.
• 📊 The Bitcoin trading bot earned $62 in one day and once made $250 using this strategy.
• 🛠️ The speaker is using the Pionex platform for crypto trading bots and mentions they are sponsored by Pionex.
• 🧠 The Ethereum trading bot is still in testing and uses a different algorithm, currently up by $3.
• ⚙️ ChatGPT helps generate and modify trading algorithms, which can be backtested on the TradingView platform.
• 🔄 The speaker is also exploring the Squeeze Momentum Indicator for Ethereum trades and believes it could be highly profitable.
• 💡 The speaker encourages viewers to try trading with bots and explore strategies from Pionex's GPT marketplace, but warns of associated risks.

Q & A

What is the primary focus of the video?

The video focuses on using ChatGPT to generate passive income through crypto trading algorithms, with examples of two trading bots set up by the creator on the Pionex platform.

What kind of trading algorithm does the creator use for Bitcoin?

The creator uses a momentum trading algorithm based on the crossover of the 25-day and 50-day simple moving averages (SMA). When the 25 SMA crosses above the 50 SMA, it generates a buy signal, and when it crosses below, it generates a sell signal.

How does the creator use ChatGPT in their trading strategy?

The creator uses ChatGPT to help write and modify crypto trading algorithms. They ask ChatGPT for specific trading strategies, like the SMA crossover, and then copy and test the generated code on the TradingView platform.

What is the performance of the Bitcoin trading bot?

The Bitcoin trading bot made $62 in one day, and in another instance, it earned $250 by shorting during a bearish market. The bot trades automatically based on the SMA crossover signals.

What other trading bot is the creator testing?

The creator is also testing an Ethereum trading bot that uses a different algorithm. The bot recently opened a position, and while it has only made $3 so far, the creator is hopeful about its performance.

What platform does the creator use to run these trading bots?

The creator runs these trading bots on the Pionex platform, which also sponsors the video. Pionex offers various automated trading bots that users can customize and use to trade cryptocurrency.

What is the 'Squeeze Momentum Indicator' used in the Ethereum trading bot?

The Squeeze Momentum Indicator is a popular technical indicator that identifies price bands and detects moments of rapid price movement or 'squeeze' zones. The creator uses this indicator to predict market squeezes and make profitable trades.

Can users copy the trading algorithms used in the video?

Yes, the creator shares the source code of the trading algorithms, which users can copy, modify, and use for their own crypto trading. Users can also access pre-made strategies from the GPT Marketplace on Pionex.

What is the backtested performance of the Bitcoin trading algorithm?

The backtest of the Bitcoin trading algorithm showed a 23% return on investment over a given period, which is encouraging for the creator. When backtested for a month, the algorithm achieved a 16% return, with the potential for annualized gains up to 200% APY.

What advice does the creator give regarding the use of trading bots?

The creator advises viewers to start small and do their own research before using trading bots, as there is inherent risk in trading. They emphasize the importance of not trading based on emotion and letting the bots handle market decisions automatically.

Outlines

00:00

🌏 Exploring Japan with Passive Income Goals

The speaker begins by sharing their excitement about being in Japan, emphasizing that achieving this level of freedom is possible through passive income. They introduce the idea of using ChatGPT to create automated systems for generating income, enabling travel while still earning. The speaker explains their use of crypto trading bots and showcases two that they’ve developed: one for Bitcoin and another for Ethereum. The bots use technical indicators and algorithms to execute trades autonomously.

05:00

📈 Bitcoin Trading Bot Based on Moving Averages

In this section, the speaker delves into the specifics of their Bitcoin trading bot, which operates using the 25-day and 50-day Simple Moving Averages (SMA). The bot generates buy signals when the 25-day crosses above the 50-day and sell signals when it crosses below. The speaker highlights a recent success, where the bot made $250 during a bearish downturn. This bot operates autonomously, protecting market positions by executing trades even while the speaker is sleeping. They mention their use of the Pionex platform and provide details on how the bot manages momentum trading.

10:02

📊 Testing and Optimizing the Ethereum Bot

The speaker introduces their Ethereum trading bot, which uses a different algorithm and was recently set to open positions as Ethereum began to rise again. They explain how to modify the bot’s code through Pionex GPT and show how to backtest the algorithm using a specific date range (from March 1st). The backtesting reveals an annualized potential return of 200%, which motivates the speaker to continue using the bot. They stress the simplicity of setting up such bots with minimal technical knowledge but also caution viewers about the risks of crypto trading.

🔧 Customizing and Automating with Pionex GPT

This section covers how to further customize trading algorithms by working with Pionex GPT to generate trading strategies. The speaker shows viewers how to set up a webhook URL, connect it to a trading signal, and automate the process for seamless execution. They provide step-by-step instructions for integrating these signals into a trading bot, including copying and pasting codes and setting up message parameters. The speaker encourages viewers to experiment with different strategies to create a personalized passive income system.

🚀 Ethereum Squeeze Algorithm – A New Strategy

The speaker introduces a more advanced trading strategy based on the Ethereum Squeeze Momentum Indicator, which identifies rapid price movements and trades accordingly. They explain that the strategy is derived from the popular Squeeze Indicator, found through community scripts on TradingView. The speaker emphasizes that this algorithm signals when to buy during 'squeeze zones' and sell when momentum declines, thus optimizing profit-taking opportunities. Although this strategy is still being tested, the speaker expresses optimism about its potential.

💡 Building Strategies with MACD and Squeeze Indicators

The speaker explains how to adapt simple trading strategies, such as the MACD (Moving Average Convergence Divergence), which works similarly to the SMA strategy by tracking momentum. They describe using Pionex GPT to generate and modify code for these strategies. The speaker also discusses the Squeeze Momentum Indicator again, highlighting its popularity and ease of use. They share that with the help of ChatGPT and Pionex GPT, even users with no coding experience can create effective crypto trading strategies that function automatically.

💻 Final Thoughts on Trading Algorithms and Future Potential

In the concluding section, the speaker reflects on their crypto trading journey, discussing the profitability of their strategies and the benefits of automation. They reiterate that their bots consistently trade based on market conditions, allowing them to earn money without constant oversight. The speaker encourages viewers to explore Pionex GPT, the marketplace of pre-crafted solutions, and various types of bots, such as grid trading and DCA bots. They express enthusiasm about the future potential of these tools in both bullish and bearish markets, and offer a parting note to viewers to share their thoughts on the strategies discussed.

Keywords

💡Passive Income

Passive income refers to earnings generated without active involvement, often through investments or automated systems. In the video, the speaker emphasizes the importance of passive income to achieve 'freedom of location,' allowing individuals to travel while still supporting themselves financially. The speaker's use of crypto trading bots to generate money while sleeping exemplifies passive income.

💡Crypto Trading Bots

Crypto trading bots are automated software programs that execute buy and sell orders based on predefined strategies. In the video, the speaker discusses how they are using bots to trade Bitcoin and Ethereum using algorithms based on technical indicators. These bots are integral to the speaker's passive income strategy, as they make trades 24/7 without emotional involvement.

💡Simple Moving Average (SMA)

The Simple Moving Average (SMA) is a technical analysis tool that calculates the average price of an asset over a set period, smoothing out price data to identify trends. In the video, the speaker uses the SMA 25 and SMA 50 (25-day and 50-day moving averages) to develop a trading algorithm, with buy signals generated when the 25-day SMA crosses above the 50-day SMA and sell signals when it crosses below.

💡Crossover Strategy

The crossover strategy is a trading method where buy or sell signals are generated when two moving averages (like the 25-day and 50-day SMA) cross each other. In the video, the speaker explains how their trading bot executes buy orders when the 25-day SMA crosses above the 50-day SMA, indicating a bullish momentum, and sell orders when the opposite occurs.

💡Pionex

Pionex is a cryptocurrency trading platform that supports automated trading through various types of bots. In the video, the speaker uses Pionex to run their trading bots and mentions that the platform offers a feature called 'Pionex GPT,' which helps users generate custom trading algorithms using AI. Pionex is also sponsoring the video, offering bonuses for new users.

💡Backtesting

Backtesting is the process of testing a trading strategy using historical data to see how it would have performed in the past. In the video, the speaker backtests their crypto trading algorithm on TradingView by inputting a sample of $1,000 capital to see if the strategy would yield a profitable return. The results show a 23% return on investment, which gives the speaker confidence to use the strategy in live trading.

💡TradingView

TradingView is a popular platform for charting and analyzing financial markets, offering tools for backtesting and strategy development. In the video, the speaker uses TradingView to test their algorithms by copying and pasting the code generated by ChatGPT. TradingView provides real-time data and tools to visualize the performance of their trading strategies.

💡Squeeze Momentum Indicator

The Squeeze Momentum Indicator is a technical tool used to identify periods of low volatility followed by potential explosive price movements. In the video, the speaker creates a custom trading algorithm based on this indicator, which identifies 'squeeze zones' where the market is likely to experience sudden momentum shifts. The speaker mentions that the indicator is based on John Carter’s TTM Squeeze volatility research.

💡GPT Marketplace

The GPT Marketplace is a feature on the Pionex platform that offers pre-made trading algorithms generated by AI (ChatGPT) that users can implement with a single click. In the video, the speaker highlights the convenience of the GPT Marketplace, where traders without coding knowledge can select and copy successful algorithms tested by others.

💡MACD (Moving Average Convergence Divergence)

The MACD is a trend-following momentum indicator that shows the relationship between two moving averages, typically the 12-day and 26-day EMAs (Exponential Moving Averages). The speaker mentions the MACD as an alternative to the SMA crossover strategy and demonstrates how to use Pionex GPT to generate a MACD-based trading algorithm for automating buy and sell signals.

Highlights

Introduction to the video, explaining the setting in Japan and the concept of passive income through automated trading bots.

Explanation of how using ChatGPT helped the speaker create trading algorithms for Bitcoin and Ethereum.

Overview of two trading bots being used: a Bitcoin trading bot and an Ethereum trading bot.

Bitcoin bot earned $62 in one day, and at one point, $250, based on a technical indicator using the 25-day and 50-day Simple Moving Averages (SMA).

The crossover between the 25-day and 50-day SMAs is used to generate buy and sell signals for the Bitcoin trading bot.

The Bitcoin bot sold at the right time during a bearish downturn, helping to save money, and bought again when bullish momentum returned.

Explanation of how the Ethereum trading bot works, with the speaker hopeful about its performance as Ethereum shows signs of a rebound.

Speaker uses Pionex GPT, a tool that automates trading strategies based on user input, such as the 25-50 SMA crossover strategy.

The trading algorithm can be backtested using TradingView with an example showing a 23% return on investment using $1000 in capital.

Modification of the algorithm to trade within specific date ranges, resulting in a 16% return for the month of March, showing promising results.

Introduction of the 'Ethereum Squeeze Trading Bot,' a more advanced strategy using the 'Squeeze Momentum Indicator' to detect volatility and profit from rapid price movements.

The Squeeze Momentum Indicator is popular and based on John Carter’s TTM Squeeze Indicator, identifying when to buy during low volatility and sell during high momentum.

The speaker used ChatGPT to convert the indicator into a fully functional trading strategy, automating buy and sell signals.

Backtesting of the Squeeze Momentum Indicator-based algorithm shows a 16% return over a month, with tighter profit margins and better market timing.

Conclusion: The speaker leaves code examples for viewers to copy, modify, or create their own strategies. They recommend the GPT Marketplace for ready-made algorithms and trading tools, and highlight the potential for generating passive income through crypto trading bots.

Transcripts

hey guys welcome back so I'm in Japan

today now before everybody gets mad at

me for being in Japan I just want to say

you too can be in Japan I know we all

want to be in Japan eat some Sashimi

I'll give you a room tour too show you

off this luxurious room but what you

need is passive income in order to

achieve that freedom of location you

don't want to be chained to an office

necessarily and so today I'm going to

show you how you can use chat GPT to

generate some passive income for

yourself so that you're making money

even when you're sleeping allowing you

to travel and still be able to support

yourself while you're at it so let me

show you these two automated systems

I've set up for myself these are two

trading buzz on crypto that have been

running just a few days and we can see

the Bitcoin trading bot has already made

62 dollars and one day it actually even

made 250 dollars the ethereum trading

bot is using a different algorithm I'm

still testing this one but it's up about

three dollars right now and I'm hopeful

that this one may perform better but

basically I'm using chat gbt to write

this coding trading algorithm for crypto

that I've always wanted to do do in my

head like I knew this would be a strong

technical signal it would be a good

algorithm that could possibly make some

decent money here and now I'm finally

able to implement that algorithm through

the help of chat gbt on the pionex

crypto trading bot platform now pad next

has also kindly sponsored this video and

if you sign up with them you'll get a

bunch of free goodies like over a

thousand dollars worth of bonuses so

check them out there'll be a link in the

description below and you can also get

started making passive income with

crypto trading Bots but enough talk

let's take a look at what I've done here

so this is the crypto trading algorithm

and this is actually based on a very

simple but quite a strong technical

indicator which is the crossover on the

25 simple day moving average and the 50

day so we can see here these are the

simple moving averages the 25 and 50 the

25 is the brighter orange line and

whenever the 25 crosses the 50 it puts

in a Buy Signal and when it crosses down

under it it puts in a Cell so this is

kind of a momentum trading algorithm I

have it operating on bitcoin and we can

just see anytime the 25 crosses over it

puts in the buy order and then when the

cross is under it sells and so we can

see this indicator can be quite useful

like here and put in the buy order right

before this huge price ramp up caught

this huge bull market move and then it

sold when the price started moving

sideways again and this can also protect

your Market position so we can see if

putting a sell order for me right here

this actually saved me a ton of money

because there was this bearish downwards

momentum and then later on just this

morning actually it rebought that

position when the 2550 simple moving

average crossed over again so that's

signaling a little bit more bullish

momentum now and we can see the trades

is making here actually so this was the

cell here on the 420 at 6 am is so my

position and that coincides exactly with

the daycare 420 at 6am right there so I

would have been sleeping at this time

but it caught that for me I think it's

funny actually shorted that position for

me so it earned 250 dollars in that

bearish downwards momentum and then we

can see there's another open position

for Bitcoin here and that's the position

if just bought this morning and so this

is one of two crypto trading Bots I'm

running the other one here

I have high hopes for this one it is the

ethereum squeeze trading bot I'll talk

about this in a moment but this one just

began running recently because ethereum

was kind of in the down market so it

didn't buy any positions now that I'm

starting to climb up again it recently

opened the position so we'll see how

this one goes but here's how I'm doing

this and you can do something similar as

well you don't actually need technical

knowledge to do any of this it's very

simple you can just click a few buttons

If you want to earn some passive income

with this as well although you'll take

note there's some risk as well do your

own research of course and start small

but you go into more and then you click

pan next GPT now here you can ask

pionexgpt what type of trading algorithm

you want so I say give me a trading

strategy on the SMA 2550 because I know

this is a pretty strong technical

indicator it's been reliable for me in

the past and it's going to just turn out

this algorithm here now once you have

the code you can click copy and back

test on trading View and it takes you to

the charting platform trading View and

you can just come into the plan editor

and copy and paste in that code now take

note you may have to make a few small

small code modifications here because

chat GPT doesn't necessarily get

everything right right away but you know

you can also come into this GPT

Marketplace here and there's a bunch of

pre-crafted solutions here that other

people have written and back tested and

you can check their performance and then

you can just copy trade these with a

single click of a button but if we come

back to here I'm going to click add the

chart it's going to compile that and we

can see it's actually putting in the buy

and sell orders here to show us when

it's doing that and so just like that so

simple we have this crypto trading

algorithm that I've always wanted to

implement in my head and we can actually

back test this just to check the

performance we go into the strategy

tester I'm going to set the properties

for this so we'll say maybe initial

capital of a thousand dollars and we'll

do thousand dollar order sizes or so and

then if I click OK it's going to show us

the back tester performance about 23

positive return on investment which

seems pretty good and is something I'm

willing to try on and test my money on

here now if you want to back test the

strategy from just the last month or so

on a technical note I realized that you

can actually modify the algorithm to

just trade within say from March 1st or

so so we can actually go back to Panax

GPT and modify the algorithm to be valid

from March 1st sure to modify the

algorithm we can add a simple condition

to check the date so it's going to do

that for us we've got a timestamp now so

I'm going to copy and paste this add it

to the chart and I had to modify the

timestamp parameters a bit but now we

can see it's only going to trade from

March 1st and so now if I run this back

test again we can see just within the

last month it averaged about 16 percent

positive return which annualized across

the year is almost like 200 apy which

would just be fantastic so I'm leaving

this crypto trading bot open just to see

what type of deals it can return for me

and you know the great thing about this

is is not trading based on emotion it's

just doing the trade space on the 2550

simple moving crossovers now once you

have this trading algorithm set up just

the way you want you want to choose the

time scale you want the iPhone set to

hourly or so then you come into pan X

and you can click a trade and create a

signal trading bot so this is going to

trade automatically based on trading

view custom signals so we'll call it the

BDC SMA 2550 or so click continue then

you're going to choose the web hook URL

copy that come into trading signal and

click on this alarm icon notifications

and paste in that webhook URL so you

paste that then it's going to send the

signal back to Planet X and then you're

going to want to copy this message

parameter so it's just a field here come

into settings and paste that here as

well and with that you click confirm and

your trading bot is created and then you

just choose the trading pair you want in

this case I'm doing Bitcoin you can

actually have leverage if you like as

well and then just choose how much you

want to put in and it's actually going

to start the learning and showing this

bot algorithm trading for you and so

that's a simple way to start trading

momentum on crypto and earn some passive

income in any type of Market whether

it's an up Market or a down market and

so if you like this algorithm I will

leave the code on screen here you can

screenshot it if you like and copy

modify however you like you know I could

probably charge something for this

crypto trading algorithm but you know

I'm a kind generous person but I also

want to show you another algorithm here

that I've been working on and this is

the ethereum squeeze algorithm now this

algorithm is just for the contest yours

it's custom stuff actually I've yet to

test it but I have high hopes for it but

before I get into this I also want to

show you by the way you can also use a

very simple strategy if you want to do

the simple moving average stuff you can

just do use macd to buy and sell so from

Panax GPT you can ask it for an macd

algorithm macd is moving average

convergence Divergence which is

basically very similar to what we just

did is trading on momentum when the

simple moving averages crossed this one

is actually based on the 1226

exponential moving average so it's kind

of similar basically similar Trends and

this one you can just copy and use this

code right away or again you can also

just go to the GPT Marketplace and it's

going to have all these algorithms that

you can just really quickly get in on so

definitely some fun stuff to play around

with but let me show you how I got to

this connoisseur algorithm that I'm

talking about the squeeze algorithm so

let's take a look at this algorithm we

can see it actually just got started

yesterday so I've yet to really fully

test this but it has already been in

profit making three bucks here could be

good so this algorithm is pretty

Advanced actually it's using something

known as The Squeeze momentum indicator

and the way I found this by the way is

if you go into Community scripts and you

sort it by the top most popular scripts

you can see the number one here is the

squeeze momentum indicator by lazy bear

and if you actually go into the

documentation here we can see that it's

based on This research paper John

Carter's TTM squeeze volatility

indicator in this book mastering the

trade okay now apparently this indicator

is so popular 83 000 people have liked

it but what this does is it identifies

price bands the Bollinger Bands and when

the prices within those bands it says

okay there's not much movement here so

it's not going to make a trade long

story short it identifies these squeeze

zones when there's rapid price movement

the price is squeezed either upwards or

downwards and that's indicated by these

gray crosses here on the timeline and

then there's also these black crosses

here and the black crosses we can see

the price isn't really moving then

there's these gray crosses here rapid

price movement and then when the moment

momentum goes down negative then that's

when you want to sell and then when

there's a squeeze Zone here again you

want to buy it and then sell again when

the momentum turns red we can see here

actually though even though there's

green momentum it's not a squeeze Zone

and so in this section it says you don't

necessarily want to buy here because the

price movement is pretty neutral so you

only want to buy when there's this

confirmed upwards Trend so what I did is

I actually took this code you can

actually come here see the source code

and you can just copy that now the

problem here is that this code is just

an indicator it's not a trading strategy

and so it needs to be modified into a

trading strategy with buy and sell

signals right now it's just a bunch of

charts which is nice but you want to

automate the trading for it and so I

came into pinex GPT again I copied and

pasted this code and told Pi next make

it a strategy because hey who wouldn't

want the trade based on the most popular

technical indicator around here and then

plant next gbt basically helped me turn

this into a piece of working code now

take note I have no idea how to write in

this language it's Pine script are

basically using chat GPT and a bit of

human modification I was able to get

this code running I essentially changed

it from a study into a strategy and then

I added buy and sell signals here for

when to go long and when to close that

long and I said okay here's the

timestamp started from March 1st again

like usual and so now when I add this to

the Chart or voila this may be exactly

what's going to be making me Rich you

guys like this could be my ticket either

here because this is showing exactly

when I need to go long or to close these

loans based on the squeeze momentum

indicator which is like the number one

indicator out here we've got tens of

thousands of people following this thing

so showing you right here for example

when there's this gray Zone here on the

origin axi this is when there's a

squeeze coming in it's going to long red

there and it's going to sell right when

the momentum turns negative even a

little bit so it's going to lock in

these little profits for me just

whenever I needed to so this one is

really only doing loans I don't have a

shorting anywhere and so we can see

right here it's going to go long and

then sell right when the momentum turns

negative and so the indicators are going

to have tighter margins The Profit

signals may be much clearer I mean we

can backtest this as well just to see

like how rich am I going to be out here

you guys and we can see over the past

month The Profit has been about 16

return on investment which is maybe

similar to the simple moving average

strategy there's a 2.3 x profit Factor

35 trades are profitable and the max

drawdown here just about 70 usdt which

is pretty good based on putting in 1000

USD to the initial Capital so personally

I'm hopeful that this crypto trading

algorithm strategy may make me riches

some passive income at least or at least

get me an entry into some of these

trades maybe help me dollar cost average

and here's the source code if you want

to copy and paste any of it modified as

you wish but it's very similar to the

original code with just a few

modifications you know one Improvement

is you can make it short the markets as

well currently it just does loans but

even if you don't want the code you can

always come to the GPT Marketplace on

pan X and there's all these pre-crafted

trading strategies you can play with and

Beyond the custom coding algorithm Bots

you also have like grid trading Bots DCA

boss rebalancing Bots to our futures

Arbitrage Bots and so a lot of the tools

to play with here to help us make money

in any type of Market whether it's a

full Market bear Market or sideways

Movie Market which seems to be what

we're in right now and personally I love

how these Bots are watching the markets

24 7. so sometimes I just get a

notification on my phone like hey a buy

order has been placed and I'll take a

look and yeah there's a rally coming in

or suddenly there's a sell order and

I'll see I'll keep the Market's taking a

downturn so I don't have to worry as

much because the boss are making the

trades for me faster than I can more

unemotionally than me and I know that's

hard to believe but that's how it is so

if you want to check them out as well

pandex they've got all these bonuses for

you their Futures bonuses like over a

thousand dollars worth of bonuses you

can sign up in the description link

below other than that hope you learned

something new today let me know your

thoughts on these crypto trading

algorithms you think they'll work for me

think I'll be rich see you in the

comments below I'll see you at the top