ChatGPT Achieves Revolutionary +17168% Returns With AI Trading

seventeen thousand one hundred and sixty eight percent that's the amount of profit that my chat GPT bot was able to make in about 1 400 trades I'm gonna share all of this information with you guys for free I'm not gatekeeping this information I'm gonna do a complete walk through on how to create a bot that is effective and has some really good results just like this strategy here so if you appreciate that sentiment be sure to tap that subscribe button and hit the like button to help boost this video in the algorithm the platform I'm on is trading view if you want to set up the link is down in the description you can register using a free account everything I'm going to show you in this video is going to be absolutely free so to quickly explain the numbers and statistics on your screen of how this bot is performing and I'm going to show you on the chart how it performs what kinds of Trades it takes the net profit is the most important number if you log on to your own trading View and pull up the performance summary you can click these question marks and it shows a brief description of what all these numbers mean this is going to be really important so now that profit is the gross profit minus the gross loss so we take this number and subtract the loss from it and we end up with our gross profit that's pretty straightforward run up is a theoretical maximum gain that you could make on a trade so if you entered at the exact bottom and exited at the exact top you have ideal run up now drawdown is very similar to the reverse of that if you enter a trade in the price drops about one percent and then increases two percent your drawdown would be one person on that trade and you would still profit on that trade assuming your stop loss didn't get hit the Buy and Hold return is the amount of money you would have made if you invested in the stock run the Bitcoin chart if we bought Bitcoin and held it in our wallet we would have profited 143 during the time frame that this strategy was operating that's going to be our Benchmark and since we're above it we got a green check mark the next two ratio is the sertino and the sharp ratio are very key to look at the way that sharp works is the reward to rideability ratio it's very very common to be used and the difference between the sharp ratio and the certain ratio is that the sortino ratio only looks at the negative downside whereas the sharp ratio looks up at the upside plus the downside and you can see the formula here is calculating it automatically for us on our chart so we can constantly look at these and improve them as needed the profit factor is pretty straightforward it's the amount of money that your trading strategy made for every unit of money lost so we're at 1.9 that's a pretty good value for profit Factor the commission rate is also very important as it affects the total profit that you would have my profit would be far higher if I didn't account in commission total close trades is very important you want to have a fairly large sample size I would say anything above three four five hundred is going to be a fairly substantial sample size when you're building a strategy one of the weaknesses I commonly see if people have a strategy and it only made 12 trades it's not a large enough sample size to actually know if that certainty Works in real time going forward since we're back testing there's going to be weaknesses with all of this but we try to build those out and iron it out using robustness training techniques so as you can see in this strategy the number of winning trades is actually lower than the number of losing trades so the risk management is essential for getting out of losing trades every time there's a breakout take a shot at it and if you keep doing that with proper risk management techniques you can increase your net profit so you don't have to win every trade it doesn't have to be perfect no strategy is going to be absolutely perfect you just want to tip the odds in your favor and not get completely greedy the next thing that's really key is average winning trade versus average losing trade you want to be able to minimize the average losing trade and you want your average winning trade of course to be bigger than your average losing trade that's going to give you your risk margins and you also want to see your average bars and trades because if your strategy is trading too much you're going to wipe out your accounts as well so you want your strategy to hold for a reasonable amount of time and you want real logic built into your strategy in order for it to make sense why it's making profit the entries should be clear the exit should be clear and that should be giving you a full rule set for when the strategy is going to enter or exit your trades just as if you were trading in real time except it's not you you're gonna hook this up to a trading bot and it's going to operate for you 24 7 while you're sleeping so let's look at some of the traits on the chart this is a great long entry it entered at the start of this candle and it held all the way up and then it closed and It reversed back into a short at this point here so this was 7.6 trade that's very good and then a short coming in this direction it closed the short here did not enter along and then it opened another short here and held all the way down to the very bottom and closed the short here flip back to long that's exactly what I like to see that's a 7.8 percent short this is a great long we caught here it caught this long up right after this dip that's very good so I'm sure you're wondering that's great and all but how are you going to show me how to do this for myself and if I can't do this for myself can you help me and yes to both of those questions the link to my Discord is in my profile Banner click on to my page check my links so I'm going to be sharing the strategy I build right now in front of you in my trading Discord just subscribe to my page head over and click my profile banner and then you'll see that I have a Discord linked in my link tree head over there and I'm going to share all the code there and it's also becoming a great Community to hang out in come and share your strategies and build with a community we're all working together to build strategies so step one and all this is registering a free open AI account that's going to get you access to chat gbt and it's going to be doing the coding for you once you do that the page should look like this it's chat GPT and you can enter prompts here and chat gbt can take natural language and build code for you now chatgpt is prone to a couple errors in coding it's not perfect yet but the language models that are coming out this is chat gbt three there's going to be chai GPT four five six seven Google Microsoft Facebook everyone's working on their language models and so this is a perfect time to get involved with learning how all of these models work and using them to your advantage so the things that chat GPT can't do very well yet are building an entire trading strategy from scratch it can give you very good generic advice but what it does do is it builds off templates very well so we're going to do is a creative approach that I came up with we're going to use the public database of trading view indicators and we're going to ask chat GPT to improve on them and convert them into a strategy for us and build rule sets for us you don't even need to know how to code to do that so register for trading view there's a link down in the description for a free account there's no strings attached to do that and so to start this process off I'm going to click on the indicators tab right here and I'm going to search the public database of community scripts we're going to be doing a simple strategy here so I'm going to select the Bollinger Bands and there they are and as you can see there's no long or short entries on this script this is just an indicator it's telling us visually when the price is breaking up so the next step is to open up the source code and to do that in the top left the indicators mbb here if I hold my mouse over it and I select these two brackets here I can actually open up the source code so I'm going to do that and here's the source code there's a little lock we can unlock it by clicking these three dots here on the top right make a script copy and you can name it anything that you want so next thing that's important we've got to check the version of what this code is in this is version three the newest version of pine script is version five so it's really simple to update that we go to the right hand corner again there's these three dots convert to V4 and you're going to see an update there it is and we can click it again and we could go back to V3 or convert to V5 so I'm going to click convert to V5 and there's another update you can see it says version 5 at the very top of our script there so I'm going to copy all that I'm going to head back to chat gbt and I'm going to paste it in now I've got version five I can see that this is an indicator it's not a strategy so I'm going to manually change this here to save chat gbt the time so I changed that from indicator to strata strategy and now this should work fairly well now all I have to do is tell chatgpt what I wanted to do with this strategy that it's building so I wanted to build rules for long and short entries so here's a simple prompt to tell chat GPT exactly what you need chat gbt to do for you so it says code to strategy in Pine script enter along when pricing closes above the upper Bollinger band and short when price closes below the lower Bollinger brand that's going to catch breakouts so if the boiling bands are expanding that means that we're the price is breaking out sometimes there's going to be fake outs and it's not going to be trading in that middle Zone when price action is kind of consolidating and not really doing much so let's hit enter and see what happens so we've got some code action happening and I'm going to check exactly what it's adding to this original strategy it's building off this as a template this is acting as the structure for training chat GPT to build off ideas that we already like or what we already want so in natural language I've coded some simple ideas the logic is fairly straightforward fairly clear and now the exciting part is to see what it does with this in code so now I see long entry is a condition when we cross over the upper Bollinger band and likewise the short entry is when we cross under the lower Bollinger band perfect so let's copy this and head back to trading view I'm going to paste this on top of the other code so I've overridden it and now we have the strategy entry conditions so I can already see we might have some issues if I click save there might be an error we're going to fix it really quick to cross over and cross under or actually functions from the old version of pine script to update it all we have to do is type ta Dot and it should highlight in blue if we did it correctly so I'm going to do it with a cross under as well ta at the very beginning Dot and if it highlighted that's correct so we'll hit save again we should see if we get any more errors and we'll resolve those as they come and that's giving us this error on the strategy exit this is really simple to fix I'm going to do it really quickly using an if condition so if we have a short answer tree is going to close the long and I'm going to delete that extra code because we don't need it now and let's check this logic so if we have a short entry we exit the long if we have a long entry we accept the short perfect now let's hit save and see if that saves so these orange alerts have nothing to worry about we can just ignore them and we can add this to our charts to see how it performs and it's not performing bad we're not at a ridiculously high percentile yet again this is the very first prototype but it's catching some of these breakouts there's a long right here we went for the long and we've flipped a short here and it caught this huge dump right here that's exactly what I'm talking about okay so we have something to work with here so I'm going to go back to the Pine editor and the next thing I want to add is compounding interest that's going to mean that our strategy is going to invest any money it makes back into the strategy and over time that should compound so I did that here I added a thousand as the initial Capital that doesn't matter you can change that to any number you want and the results the percents is going to be the exact same the quantity type is going to be percent of equity and the default quantity value for each trade we're going to invest a hundred percent of our strategy every single time turn it over into the bot again and again to compound now let's hit save and see if there's any errors on that there's no errors on that so let's head back to the strategy tester and we've got some profit 625 on the three hour the four hours looking good is profitable across multiple time frames it doesn't look like the shorts working out so well so we might have to adjust some of our exits the logs are performing really well though so the next step that we have to do is fine tune our strategy so there's a real building we're going to have to add some different exit conditions to our strategy maybe maybe if the price crosses Above This Middle Line it'll exit as short or along depending on the direction or maybe we want to add an RSI and if the price is oversold if the RSI is oversold and it crosses back up you might want to add that as one of your conditions as well so by stacking these for Confluence we can get even better results than we already have and the next thing that we can do is open the settings here and fine tune it using our settings here so the Bollinger band length is taking in the last 34 bars and if we up that maybe we can smooth it out and you'll see if I change this value to say 40 for example this number is going to change and it went up so we can keep adjusting this to fine tune the exact measurement that we want you can click up and up and up and you can see that these numbers keep changing and now the shorts are actually profitable as well so you can keep playing with this you can also change the malt and we got to check it across different time frames to see if it's performing on different time frames as well as different equities so we can head over to the ethereum Chart just as a test and it's performing on the 12 hour chart fairly well already an eight hour chart is actually above seven thousand percent already this is really really really interesting so these long entries and short entries as well as the exit conditions could be changed I'm going to give you a quick example of how to do that so if we want to add more exit conditions for our strategy I can make a simple example here you can see if we we have a short entry it's going to close our long that makes sense that's very logical and if we want to add an or condition there if the close is below the middle line and that inner code is the orange line that's going to be the basis so I can take the basis line and if the if the close is below the basis line we want to get out of our long position and likewise the short exit condition is our long entry or if the close is up above that basis line and that is just this middle line here in our strategy typically fairly good at finding reversals so if I hit save let's see how that adjusts our profit 43 000 now if we add commission we can get these numbers to be a little bit more realistic so commission value is going to be 0.05 and if I hit save let's see what these numbers change to and it came down to 23 000 so we could head over to the list of Trades and this is the overview of what the bot is doing there's a total of 626 closed trades the average bars and trade is 30 that's fairly good it's holding its position once it enters and this is actually pretty amazing including commission as well so we're gonna head over to the list of Trades and this is telling us exactly what the bot did tell us the exact time and entered each trade tells us the communal of profit if you enter trade and the price drops and you're in the negative but then reverses and then you end up closing in profit like for example this trade this was a six percent profit but when it entered it actually took a 1.29 loss before the price reversed that's going to be your drawdown so you want to optimize those numbers as well and you can go through and meticulously review every single one of these and fine-tune your Bot now this is going to be a craft this is going to be something that you forward test you paper trade you don't use real money yet so what I'm gonna do with this I'm going to copy it and I'm gonna share this exact code in my Discord channel so I've pasted it right here I'm gonna pin this message so that anyone coming in can come and find it and if you want to find it just hit this top right pinned messages and you'll see it right here I'm in the chat gbt Bots channel so you can find it in that channel and while I'm here I also wanted to show off the free signals that this server offers you can get alerts for this just by clicking either of these two buttons here you can subscribe to either of these or both and these signals are powered by my own personal trading view subscription if you're not subscribed to this channel you definitely should be now so hit like subscribe and the bell notification icon so that you get notified when I post new videos thanks for watching see ya

Channel: Trade Tactics

Views: 294,299

Keywords: chatgpt, chatbot, chamath, ai chatbot, chatgpt ai, openai chat, gpt 3 ai chat, gptchat demo, hack chatgpt, openai chatbot, openai chat gtp, openai chatgpt, chatgpt writing, michael batnick, advanced chatbot, jaibreak chatgpt, chatbot technology, jailbreaking chatgpt, ntroduction to chatgpt, gptchat demonstration, conversation with an ai, what is anti intellectualism, what does ai say about our future, what is pseduo intellectualism, hack, hacking, haunted

Id: xZod0u8Z2pc

Length: 15min 26sec (926 seconds)

Published: Sun Jan 08 2023