AI Enhanced Trading
Exploring The Capabilities of ChatGPT
In the video, you will see a step-by-step process where I asked ChatGPT to formulate a trading strategy. I had it help me formulate a simple short strategy… In a relentless uptrend!
I asked it to :
1. Find me a profitable trading strategy in the DAX
2. Backtest the strategy
3. Show me the equity curve
4. Explain the rules
5. Write me a TradingView indicator to help trade the strategy
Watch and see what happened…
Filmed live at Pepperstone talks in London.
A Precaution to Relying on AI for Trading
It’s important to recognise the limitations of using AI for trading decisions. While AI can process huge amounts of data and identify patterns we might have missed on the charts, it’s not infallible.
The golden rule here is simple: assume everything it suggests could be wrong. Double-checking every piece of advice, doing your own research (DYOR), and not solely relying on AI for trading decisions are key steps every trader should take.
Potential of AI in Trading
Despite the need for caution, there is some potential in using AI for trading. AI’s capabilities to develop trading strategies, summarise articles, backtest ideas, write code, and even act as your risk manager can enhance your trading performance.
Wrap-Up
While it’s easy to get caught up in the hype surrounding AI, the advantage lies in leveraging these tools responsibly and strategically.
By verifying, checking, and using AI as an aid rather than a crutch, traders can unlock opportunities without compromising diligence.
Explore AI, experiment with its offerings, and prepare to use its future advancements. This is not about keeping up; it’s about staying ahead of the game.
As Seneca once said, “Luck is what happens when preparation meets opportunity.”