Chat GPT DAX Strategy Update

How has the strategy performed so far?

At the beginning of April, I used Chat GPT to come up with a 15-minute trading strategy on the DAX.

I was doing a presentation in London and wanted to just show how you could use ChatGPT to build a simple strategy…

Watch the whole thing here if you like.

I won’t waste your time going over old ground, but as a reminder, for fun, I asked Chat GPT to come up with a SHORT strategy for me.

Bearing in mind the DAX has been on a tear recently, trading at ATH… that’s not the most genius of requests. Trade with the trend and all that.

But it did it, and suggested going short at 8.30 each day and closing 15 minutes later, the results were decent enough all things considered.

Not bad…

Anyway, since then it’s still been performing well!

Amazingly even though the DAX has made fresh highs, this intraday short strategy has made fresh equity curve highs. (This is what the quant crowd call out of sample data.)

Here’s the equity curve: The crosshairs show the date of the presentation, you can see the curve since then.

Doing alright actually.

And interestingly, if you made the same trade just one hour later, the equity curve would look like this.

Probably what you’d expect shorting in a bull market.

So, do I recommend trading the short strategy?

Probably not.

But it does show you two things:

1 – Timing is everything when day trading (we knew this, but those equity curves highlight it.)

2 – Chat GPT is well worth using to get better insights into the markets you trade.

Exciting times!