How To Create A Trading Strategy Using CHAT GPT Step-By-Step ( Real & Proven Results ! )

today I will use the chat GPT to create a full day trading strategy that you can use in every Market such as in Forex crypto or even in the stock market I will show you the step-by-step process so you can do it yourself too after the back test this strategy gave me a return of one thousand percent in just two years this is not liquid stay tuned because I will share all the real and proven results with you let's go so for those who don't know about the chat GPT this is an AI assistant trained to help answer questions and provide information on a wide range of topics so you can ask it everything you would like to know and it will most of the time get you the correct answer this program is completely free I will leave the link to it in the description first I will ask it about the best indicators I can use to day trade in the markets as you can see the AI advised me with 5 popular indicators since in other videos I have already tested the macd and the stochastic indicator I will now ask it if it can create a code using as the main indicator the Bollinger Bands indicator which I have never tried before so let's do this in pieces first I will ask it to create a strategy code based on the entry signals from the Bollinger Bands in this part we must specify what we really want so I will ask it to create the strategy using the Pines script version 5 so then I can copy and paste it on the trading view to always use a risk per trade of two percent and to only considered signals that appear during the London and New York sessions because I will want to try this strategy on the one hour time frame as you could see the AI created a simple code for us but I don't want to use the same stop loss and take profit values in every trade because I went these values to follow the market volatility for those who already know me you know I like to use the ATR indicator for this purpose so I will ask the AI to do those calculations based on the ATR where for both the stop losses and take profit values the calculations will be always using two times the atrp value so we can get a minimum risk to reward ratio of one to one well then now comes the tricky part I don't want to close the full position on the take profit because I want to scale my profits and so I want the algo to close only 50 of the position on the take profit and then scale the other 50 by using a trailing Stop Plus system that is always two times the 80rp value behind the price in this way we will always catch the big moves that appear in the market also due to this condition when the tech profit is hit the stop loss will go automatically to our entry point so the second trade gets free risk in a minute I will give you a practical example of this condition let's see if the AI can code that as well amazing as you can see the AI changed the code just as we asked the risk management part is done now let's just ask for more two indicators to improve the quality of the signals first I want to use the moving average to act as a baseline so for a valid long signal from the Bollinger Bands the price must be above this Baseline and for a valid short signal the price must be under the Baseline I will ask it to use a 200 exponential moving average as a baseline which is normally what most Traders use and again the AI coded that extra condition perfectly now to improve a little bit more the quality of the signals and to show you the potential of this tool I will ask it to code one more indicator that will act as a second filter which will be a volume indicator first let's just know what it is his opinion about the best indicators of this nature I will choose the volume oscillator so I will ask it to code that indicator too and again I need to write in detail what I really want in this case I want to have high volume on every entry signal so I just want to have the volume oscillator above the level 0 in every single trade and again the AI programmed everything I asked for I know this part of the video has been extensive but let's just ask one more simple thing because I want to perform a full back test on this strategy I want to get the profit always on the same currency which will be on US dollars so instead of Googling or trying to code that Nuance for myself let's simply ask the AI to do it the code is ready now let's copy and paste it on trading View and see what happens as you can see the code has some technical mistakes but I think the AI can easily solve them I will do this part off camera so the video doesn't get too long I see you in a bit so as I told you I asked the AI to solve the mistakes one by one then I just made the code cleaner and now we are ready to see if everything is working properly here we have an example of a long signal the algo considered the entry point after the closure of the signal candle given by the Bollinger Bands which was when the price crossed from below the lower band to above it the price is above the 200 exponential moving average and the volume oscillator is above the level zero also the signal was given during the London session the stop loss value is two times the atrp value in this case 2 times 28.8 which is 57.6 Pips and for the take profit the value is the same one here the price reached our Tech profit but the position was not fully closed yet only 50 percent the algo applied a stop-loss trailing system we could catch the overall trend and the second position was closed on the 1 2 2.8 risk to reward zone an amazing trade now let's look into this short signal the algo considered the entry point after the closure of the signal candle given by the Bollinger Bands which was when the price crossed from above the upper band to below it the price is under the 200 exponential moving average and the volume oscillator is above the level zero also the signal was given during the London session the stop loss value is two times the atrp value in this case 2 times 21.4 which is 42.8 Pips and for the take profit the value is the same one here the price reached our take profit but the position was not fully closed yet only 50 percent the algo applied the stop loss trailing system we could catch the overall trend and the second position was closed on the 1 to 5.6 risk reward zone another amazing trade so as you can see the algo is working correctly for the back test process I will use the data from the years 2021 and 2022 I will apply the algo to a large sample of currencies cryptos and famous stocks and I will point out the results on the same Excel sheet I used in the last videos I will now speed up this part of the video a little bit but you can slow it down to see the results of every single pair I'll see you in a bit huge back test but here are the real and proven results and you can see that after over 13 000 traits our chat GPT strategy at an average win rate of 48.62 percent and an insane profit of above one thousand percent this strategy really showed us the power of trading with an algo in several different markets you can see that the strategy performed really well in completely different markets which shows us its efficiency and adaptability since this return is from 2 years 2021 and 2022 we can conclude that this strategy can give you an average annual return of 542 percent which is wonderful of course we could try to go further asking the AI to optimize the indicators for example but I think I have already shared the message I wanted and I think I have managed to show you the step-by-step guide to how you can use the chef gpt2 and I honestly hope you can use it to improve your trading career and that's it I hope you learned something from this video and don't forget to subscribe share and like it to support me in bringing more content to you be well thank you bye bye [Music]

Channel: AlgoTrade Pro

Views: 22,888

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Id: ZJG-MXJKh3E

Length: 10min 19sec (619 seconds)

Published: Tue Jan 17 2023