Speaker A
hey chatsgbt give me the best trading strategy to make a hundred thousand dollars welcome back to another humble Trader video we have a very special video today I'm going to be using chat GPT to generate a trading bot with automatic
Humbled Trader uses ChatGPT to create and test an AI trading bot on TradingView with Pine Script, exploring its profitability and limitations.
Key Takeaways
- ChatGPT can generate functional Pine Script trading strategies based on user-provided indicators.
- AI-generated trading bots can be backtested on TradingView to evaluate historical performance.
- Initial AI strategies may have low win rates and require manual modifications to improve.
- Risk management features like stop loss and take profit need careful implementation and testing.
- While promising, AI trading bots are not yet fully reliable for consistent profitability without human oversight.
Summary
- Humbled Trader experiments with ChatGPT to generate a trading bot strategy aimed at making $100,000.
- The video demonstrates how to use TradingView and its Pine Script language to implement AI-generated trading strategies.
- ChatGPT is used to code a strategy based on the VWAP indicator for automatic entries, exits, take profit, and stop loss.
- The bot is backtested on Tesla stock with an initial capital of $100,000 to evaluate performance metrics like net profit and win rate.
- Initial strategy showed a net profit of $384 with a low win rate of 28%, indicating some profitability but limited effectiveness.
- Modifications to the strategy improved win rate but reduced net profit, showing trade-offs in optimization.
- The video highlights challenges with AI-generated code, including syntax errors and imperfect risk management.
- Humbled Trader emphasizes the learning process and encourages viewers to experiment with AI tools despite limitations.
- The video provides a step-by-step guide on integrating ChatGPT with TradingView for custom trading bots.
- Overall, the experiment shows AI’s potential in trading strategy creation but also its current limitations in real profitability.
Chapters
- 00:00Introduction to ChatGPT Trading Strategy
- 01:30Challenges Using ChatGPT for Trading Code
- 02:47Overview of TradingView and Pine Script
- 04:04Setting Up VWAP Indicator on TradingView
- 05:28Using ChatGPT to Create Trading Strategy Code
- 06:48Implementing and Testing the Strategy in TradingView
- 07:57Backtesting Results and Performance Analysis
- 09:20Modifying Strategy for Better Profitability
- 12:20Adding Stop Loss and Take Profit Features
- 18:29Final Thoughts and Viewer Engagement
Full Transcript — Download SRT & Markdown
Speaker A
entries take profit and stop plus oh my God this almost sounds too easy chat's GPT is a newest and hottest kid on a block right now everyone on YouTube is talking about how to make a thousand dollars with chat GPT and as a day
Speaker A
trader of course I cannot miss out on these potential profits I want to know if chat's GPT can generate the best trading strategy and the best trading bot to trade 100 000 Capital so in this video I'll be
Speaker A
testing out various strategies and AI trading Bots with chat gbt and trading view you are going to learn how you can use chat gbt to create a simple trading bot using indicators for your entries and exits how you can back test your
Speaker A
strategies step by step and finally I'll show you the performance of chat GPT strategies and whether the bot was actually profitable or not as of right now chat's GPT is still not that easy to use I spent the entire day trying to
Speaker A
figure out how to ask the bot some simple questions so it will give me exactly what I'm looking for and of course just implementing the code to create these strategies and I even upgraded to pay twenty dollars a month
Speaker A
to open AI to create this video so if you appreciate the effort please remember to smash the like button and follow along on this journey chat gbt is an advanced AI bot by open AI the bot is able to hold conversations with users
Speaker A
generate resumes write essays codes blogs and much much more but the million dollar question is can this AI bot create a strategy to trade a hundred thousand dollars can you trade stocks for me and make a hundred thousand
Speaker A
dollars oh my God here we go okay okay there's no single best challenging me to make a hundred thousand dollars oh my God sounds like my mom okay so clearly asking is straight up for a strategy it's not going to work but that's okay
Speaker A
because there are two platforms that a lot of Traders are using to create custom codes strategies and scripts to help with their trading and those platforms are TD think will swim and trading view since trading view is my
Speaker A
absolute favorite online based charting platform that's what we'll be using today along with chat GPT so for those who don't know tradingview is a free online based charting platform they also have a proprietary programming language called Pine script which allows you to
Speaker A
back test strategies and create custom codes and indicators and don't worry I have like zero coding knowledge so if this grammar over here can figure this coding crap out you're gonna be okay so we're gonna do that with the help of
Speaker A
chat GPT so once you're on the open AI platform here you're gonna click try chat gbt so you're gonna see it here you're gonna see to the two models um default is the free version but for the sake of this
Speaker A
video I upgraded to Turbo which has like optimized data and like speed and everything um so we're gonna ask can you code in Pine script remember that's the proprietary language on trading view that we can use to create a lot of custom scripts or
Speaker A
strategies okay so chat gbt is the AI is able to code in Pine script that's great okay all right so now that we're on the trading view platform we're seeing the daily chart for Tesla you can see I
Speaker A
don't have any indicators on there um you guys know that I usually just use the volume indicator and v-wap indicator so for today's demo we're gonna use v-wap as the basis for chat GPT to create our trading strategy so let's go
Speaker A
to indicators here and you're going to type in b-wap um so I usually go to the community section I'm gonna use this one uh V1 with period so I'm gonna put this on my chart right now and I'm gonna go in and
Speaker A
adjust the period to 30. I'm gonna change the color in the line style okay so you can see this is V wap on the daily chart so what I'm gonna do now is to go over here and click the settings here and to
Speaker A
get the source code for the script uh source code over here for v-wap so this is it so what I'm gonna do now is to select everything and copy it and give it to chat gbt okay so let's see I'm gonna post paste
Speaker A
it here and see if the bot recognizes it okay so you can see that chat gbt recognizes that this is a pine script code for v-wap and by the way you can do this with any indicator that you prefer
Speaker A
to use for this demo I'm just gonna use view app to keep it very simple and show you guys how you can do this so now I'm gonna tell chats gbt to create entries and exits and essentially a strategy using v-wap and the source
Speaker A
code I just gave it so use the code provided create a strategy in combine script to buy when the price crosses overview app in short when the price crosses below v-wap and let's see what it does all right
Speaker A
whoa this is an example strategy code in Pine script that buys when the price crosses however you have ensures and the price crosses below viewer this this is too cool this is actually really really fun but at the same time a little bit scary
Speaker A
if you know what I mean so you can see that this is what it gave us so for us let's see just copy code here and let's see what we get um trading view so going back to our
Speaker A
trading view platform let's make a make a test copy test one of here so we're gonna make a test copy so we're gonna delete everything and post it remember the period I'm Gonna Change it to 30 or let's see if this works
Speaker A
so remember we're showing our Pine editor this is where you kind of post the paste the code the chat GPT gave you and we're gonna save it and we're gonna add a chart and see if it works all
Speaker A
right actually worked oh I didn't think it would actually work that perfectly okay let's see let's see what I did you can see on the charts here using the V web indicator chat gbt created a lot of entries and exits
Speaker A
um let's see you can see a bot shorted when the stock crosses below V web and but when the stock crosses over okay and same thing here you can see a bunch of entries and exits here because Tesla was
Speaker A
consolidating around the view up area a lot all right from appearance it looks like you know these uh it created some sort of strategy uh you can see she bought the stock here shorted it here it's probably not
Speaker A
perfect but let's see how it did so this is Pine editor this is where we were earlier now we're gonna go to strategy tester and this way you can see an overview of how the the Bots did so you
Speaker A
can see that the the bot overall net profit 384 dollars all right that's after closing three Trill sorry 300 trades uh percentage profitable so it has a win rate of only 28 percent remember this is like going back in time
Speaker A
then to show and back test these so it's probably not perfect um profit Factor 1.77 so for every dollar um it risk for a potential loss and made a dollar seventy seven Max drop down 114 all right you can also go to Performance
Speaker A
summary and see like all the profits gross profits Etc if you go to the settings here you can see that we're trading with a hundred thousand dollars to back test this as an initial Capital base currency I'm going to change it to
Speaker A
US dollars to give us a good idea um list of Trades you can see other different trades that chat gbt did you can see where it made money and made 147 dollars wearing a lost money I lost like
Speaker A
nine dollars eighteen dollars all right 52 profit five dollars loss all right oh this bar is pretty smart what the oh even I'm scared it's actually pretty good that the first attempt that did this okay well I'm actually genuinely impressed by
Speaker A
this performance so you can see even with you know only 28 win rate the the ball is you know technically profitable but if you count in like commissions and stuff like that it's not going to be profitable but this is a very very good
Speaker A
start so we're back on the chats gbt website so I'm gonna tell it to modify the script so it can be more efficient and generate more profits but before we do so if you've been enjoying the video so far and following along please
Speaker A
remember to drop a like And subscribe there's gonna be more videos like this in the future so now we're back on chat's GPT I'm gonna tell it to modify find the previous script and sell the long when position value has
Speaker A
increased three percent three percent all right let's see what it does here's a modified version of the previous script that sells the long position when it has increased three percent let's see what's gonna do this is so scary honestly AI is going to
Speaker A
take over the world okay copy code so let's go back to um trading View so if we go to Pine editor again so let's see so input I'm gonna put 30 again okay I'm gonna save it add it to chart
Speaker A
so I think um okay this is interesting with the the modifications we did it's more profitable now at 49 percent win rate but now the net profits has dropped to like 121 dollars I'm not quite sure why so okay so I
Speaker A
bought the stock and closed the entries I think there's no more short positions I think that might be why if we go to list of Trades yeah you can see okay the bot actually took out all the short sales so now all
Speaker A
the orders are buy so they're all entry loans so in a previous version we told the stock to go long when the when price crosses overview app in short when it crosses under I think in this second version it got rid of all the all the
Speaker A
short positions so that's not what I want so I want to both go long take profit and short and take profit but it's good to know that you know if we're just trading on the long side the profitability has now increased by a lot
Speaker A
went from 28 to now almost 50 percent but no Max drawdown it's good now now you're only losing 61 dollars and you're profiting overall 121 dollars so I think what I'm gonna do is go back here this is where you get the buy and
Speaker A
sell short I'm gonna tell it to uh actually I'm gonna type the code it just did use this code uh to create actually modify this script so so I have to really think about how I'm gonna ask the boss to do this thing
Speaker A
so you sell the long when position increased three percent and you close the short when position also increased three percent now let's see if this is gonna work this is too much fun but obviously right now you know with all all so much
Speaker A
trading I only made like 120 dollars that's that's not gonna work and this is trading with a hundred thousand dollars Capital but I think we can modify it and to make it even more efficient and make more money
Speaker A
oh my God this is a long coat okay let's try so we're back here remove everything so let's see save add to chart oh let's see what did it do okay I see long entries and it's obviously short cells
Speaker A
and I see Short Selling and closing the short entry okay now let's see how it did over okay I think we just made it worse it's now overall net negative of 41 Max schwal down has now increased and it's
Speaker A
not more profitable okay that that strategy wasn't profitable can you modify the strategy to be more profitable let's see if they can do that okay let's try this it's gonna work oh error syntax error at input or so obviously I have no idea what this
Speaker A
coding error means but don't worry my own little brother is a software engineer working at is it still called fan um he has to know how to fix this hey do you know Pine script I don't know how to
Speaker A
fix this error if you a few moments later he replies what no idea he's supposed to be an engineer working at Fan all right well I guess we had to figure this out on our own so we're now back to the original strategy
Speaker A
the first one we did and that's been so far the most profitable one you can see that's the one that made us three hundred dollars and now I'm gonna see if increasing the The View up period was gonna it's gonna change anything another
Speaker A
cool thing using a strategy tester um trading view is that you can see that you get different results using different um time periods so earlier we were looking at year to date you will make around 235 dollars using the strategy
Speaker A
right because you can see um Tesla stock cross overview app early on this year and since then the stock is still long without taking any profit but if you change it to like six months you know your profitability really changes
Speaker A
to win rate is a lower but then you're making a net profit seven hundred dollars this is very interesting if you go to three months right the stock also net profit one month if you do in one month that's not a lot lower so you can
Speaker A
like play around with these different time frames and see different results so I think it's pretty clear that at least with a simple v-wap trading strategy it's only most effective and the most profitable on the long side when the overall Market has been up
Speaker A
trending so that's why year to date right it's working so well because Tesla finally crossed over v-wap so now I'm gonna go in and ask chat gbt to really modify the script so it takes profit at three percent and to reduce and stop out
Speaker A
of the position at one percent stop loss reminder that if you want to try this out for yourself you can check out trading view the free charting platform in the link down below as well as chat gbt these platforms are both free to try
Speaker A
so so I'm gonna use this script as a basis and again so I'm gonna ask Chachi BT to to have a stop loss of one percent and to take profit at three percent and not see how it performs can you modify the
Speaker A
strategy so it stops out with decrease of one percent value and take an exit position when it increases three percent certainly wow so nice you know this is honestly very scary because I think since the last uh yesterday and today I've been talking to
Speaker A
the bot it's been learning how I'm asking the questions and exactly what I want yesterday one was testing out this trading bot I got tons of errors and I just kept on asking various questions to modify it so this AI thing is honestly
Speaker A
kind of scary all right so let's try this out we're gonna copy this code go back to Pine editor on trading View and I'm gonna paste it and see if everything's right I'm gonna make the period 30 again
Speaker A
yeah I mean the profitability it's no still profitable but the net profit is now only 48 dollars you can try this out on other stocks like if we try this on something like let's say Nvidia you're gonna get very
Speaker A
different results as you can see so if we go to the list of Trades yeah and you can see the stop losses are not perfect a lot of the stop loss is at 10 which is not what we want so I think
Speaker A
the bot is unable to execute the stop loss at one percent with overnight Gap Downs that's why you know obviously this still requires a lot of tweaking we can also try this on the intraday chart and see if it's going to work out a little
Speaker A
bit better so if we go to the intraday chart of let's say Nvidia so I think on the intraday chart it's at least able to execute the stop losses a little bit better as you can see we still don't have the
Speaker A
perfect strategy with this AI trading bot but with the help of chat GPT I think we'll get in somewhere so at least with the current iteration we have it's still not that profitable um the profit percentage has dropped
Speaker A
down to 29 earlier the best we had was around 49 net profits only 41 dollars that's not a lot um I think it still needs a lot of tweaking now after trying out so many iterations of chat gpt's trading bot strategy and
Speaker A
letting a trade with a one hundred thousand dollars to test the strategies and see all the various results honestly I'm not that impressed especially with a lack of risk management and the very very low win rate that part of the
Speaker A
strategy still needs a lot of work to make sure that the losses are smaller than the wins right now they're about one to one and as you can see from the video chat GPT still require some very specific instructions and guidelines
Speaker A
when you're asking them questions you have to be very direct and as specific as possible with your instructions so I think part of using chat's gbt to create trading bot is to learning how to ask very specific questions especially when
Speaker A
you have very specific indicators and results that you're looking for as you already know I'm a grammar I know nothing about coding but I'm sure if it really went in and spends a little bit more time tweaking the bot we can make
Speaker A
it to improve the win rate and the overall net profit with even more specific guidelines and parameters so let me know if you want to see me actually go in and tweak the bot even more and give it real money to test out
Speaker A
this AI trading strategy just comment AI down below special shout out to these YouTubers and their videos using chat GPT to create these trading Bots also let me know what you think about this AI trading and are you impressed with the
Speaker A
results at the so far today and what would you do to tweak the Bots and to make it even more profitable in your future videos thank you guys so much for watching as always I'm the humble Trader and I'll see you guys next time
Speaker A
foreign
Topics:ChatGPTAI trading botTradingViewPine ScriptVWAP indicatorday tradingbacktestingautomated tradingHumbled Tradertrading strategy
