ChatGPT Coding - Profitable Trading Strategies (FULL TUTORIAL)

Using ChatGPT to Create a Profitable Trading Strategy

In this video, the speaker demonstrates how to use ChatGPT to brainstorm, create and troubleshoot a profitable crypto trading strategy.

Brainstorming a Breakout Strategy

• The speaker selects breakout strategies as his preferred trading method.

• He asks ChatGPT to help him code a pine script trading strategy that identifies range highs and range lows.

• He specifies that he wants to enter long trades when price breaks above the range and short trades when price breaks below the range.

• The speaker also requests that his position size per trade be calculated using 2% risk per trade with a stop loss and profit order for each trade.

Troubleshooting Position Size Calculation

• The speaker notes that ChatGPT often gives him trouble when calculating position size.

• He shows how he troubleshoots this issue by manually calculating position size based on account balance, risk percentage, stop loss level, and entry price.

Coding the Breakout Strategy

• The speaker codes the breakout strategy in Pine Script using the prompts generated by ChatGPT.

• He explains each line of code as he writes it, including how to identify ranges and set up stop losses and take profits.

Testing and Troubleshooting the Strategy

• The speaker backtests the strategy on historical data using TradingView's backtesting feature.

• He identifies some issues with the strategy's performance during certain market conditions and makes adjustments accordingly.

Conclusion

Overall, this video provides a useful demonstration of how to use ChatGPT to generate and code a profitable trading strategy. The speaker also offers valuable insights into the process of troubleshooting and refining a strategy based on backtesting results.

Trading Strategy Development

In this section, the speaker discusses how to develop a trading strategy using ChatGPT. They cover topics such as determining take profit and stop loss levels, calculating range high and range low, and troubleshooting code in Pine Ed.

Developing a Trading Strategy

• Determine take profit level to be 25% of the distance between the range high and range low for long trades.

• For short trades, determine take profit level to be 25% down and 3% above where we enter.

• Set stop loss order to be 3% below the range high for long trades.

• For short trades, set stop loss order to be 3% above the range low.

• Calculate range high and range low algorithmically using highest high function and lowest low function.

• Troubleshoot code in Pine Ed by identifying errors highlighted by red squiggly lines.

Position Sizing

• Double check position size before executing trade.

Introduction to Pine Script User Manual

In this section, the speaker introduces the Pine Script User Manual and explains how it can be used to learn about Pine Script.

Using the Pine Script User Manual

• To access the Pine Script User Manual, open a new browser and type in "Pine Script User Manual".

• The manual provides information on how to use Pine Script functions.

• Use the search function to find specific functions or topics.

• If you come across something you don't understand, search for it in the manual.

Finding Functions in the Pine Script User Manual

In this section, the speaker demonstrates how to find specific functions in the Pine Script User Manual using timestamps.

Searching for Functions

• Use timestamps to navigate through different sections of the manual.

• Search for specific functions by typing them into the search bar.

• Look for highlighted sections that match your search query.

• Use control+F to search within a page for a specific function.

Troubleshooting Issues with ChatGPT

In this section, the speaker explains how ChatGPT can be used to troubleshoot issues with code.

Troubleshooting with ChatGPT

• If you encounter issues with your code, ask ChatGPT for help.

• ChatGPT may suggest checking range periods or other parameters that could be causing issues.

• Adjust parameters as needed based on ChatGPT's suggestions.

Troubleshooting Trading Code

In this section, the speaker discusses how to troubleshoot trading code and make sure it is generating signals correctly.

Checking Chart and Data

• Check the chart and data.

• Make sure you're using the correct chart and time frame for the asset you're trading.

• Check the strategy settings, check the code logic, review the code logic to ensure it's correct.

Adding Print Statements

• Add print statements to help understand what's happening in the code.

• For example, print out range, high, and range low values. This helps with troubleshooting.

Troubleshooting Range High and Range Low

• There seems to be a problem with range high and range low.

• The range high moves up to be that new range high every time there's a breakout of the range high.

• No signal is ever generated because of this issue.

Attempting Fixes

• A fix was suggested by ChatGPT but did not work.

• Changing long entry condition was attempted but still no signals were generated.

Changing Long Entry Condition

• The long entry condition was changed to check if current high is greater than value of range high on previous bar.

• This change did not generate any signals either.

Fixing Position Size Formula

In this section, the speaker discusses how to fix the position size formula used in generating signals.

Position Size Calculation

• The problem is that the position sizes that we're trying to take are too large or too small.

• Calculating position size is easy if you know the math but tricky if you don't understand it.

• The speaker has taught a lot of students about position sizing and will share his knowledge.

• The current formula used for position sizing is wrong and giving way too large or negative numbers.

Debugging Code

• There's an issue with short trades as they seem to be off.

• When entering into a short trade, it defaults to take profit instead of stop loss.

• This happens because the same variable is being used across both shorts and longs.

• Two ways to fix this: use VAR to initialize or use separate variables for take profit for long and short trades.

Solution

• The simplest answer is probably the best answer - just use separate variables for take profit for long and short trades.

• Copy the new code provided by Pine Script and change version number.

Dynamic Trading Strategy

In this section, the speaker discusses a trading strategy that dynamically calculates position size, take profit, stop loss and when to enter trades. The speaker also talks about optimizing parameters to make consistent gains.

Dynamic Trading Strategy

• The trading strategy is dynamically calculating position size, take profit, stop loss and when to enter trades.

• Trades are interrupted by opposing signals. A condition is added to close out previous long or short trade before entering into a new one.

• Parameters can be optimized by changing range period, stop loss percent and risk percent. Take profit strategy can also be modified by changing the percentage from 25% to 50%, 75% or even 100%.

Conclusion

The speaker discusses a dynamic trading strategy that calculates position size, take profit, stop loss and when to enter trades. They also discuss optimizing parameters for consistent gains.

Introduction

In this section, the speaker introduces the concept of stop loss and take profit in trading.

Stop Loss and Take Profit

• The speaker talks about the importance of having a stop loss and take profit in trading.

• They mention that having these parameters can help traders manage their risk and maximize their profits.

Testing Trading Strategies

In this section, the speaker discusses testing trading strategies using GPT.

Testing with GPT

• The speaker mentions that sometimes long conversations with GPT can cause issues.

• They start testing a strategy and adjust parameters to find the sweet spot.

Finding the Sweet Spot

• The speaker finds that a 50% parameter seems to be the sweet spot for their strategy.

• They note that they have a profitable strategy at 50%, but not at 75% or 100%.

Refining Trading Strategies

In this section, the speaker refines their trading strategy by adjusting various parameters.

Removing Short Trades

• The speaker tests removing short trades from their strategy using GPT.

• They find that removing short trades makes a big difference in profitability.

Adjusting Parameters

• The speaker adjusts various parameters such as arranged period and take profit percentage to refine their strategy further.

• They find that increasing arranged period to 30 results in a massive change in profitability, while increasing take profit percentage to 50 results in even better performance.

Conclusion

In this section, the speaker concludes their discussion on trading strategies and offers some recommendations.

Final Thoughts

• The speaker notes that their refined strategy is a safer way to implement trading with Bitcoin.

• They emphasize the importance of knowing when to turn a strategy on and off based on market conditions.

Recommendations

• The speaker recommends adding additional take profit methods and methods to check whether to enter or exit a position.

• They suggest using plots to double-check position sizing.

Finding Answers for Pine Script Coding Issues

In this section, the speaker discusses resources that can be used to find answers for coding issues with Pine Script.

Resources for Finding Answers

• Trading View Public Chats: The Pine Script Q&A chat room on Trading View is an invaluable resource with over 200,000 individuals who are eager to help. Posting a question in the chat often results in a quick response and helpful guidance.

• PineCoders.com: This website is filled with tons of code examples and learning resources. Using the search function (control F), you can easily find what you're looking for and get your answer.

• Cracking Cryptocurrency Discord: Joining the Cracking Cryptocurrency Discord and utilizing their free coding channel is another great resource. The community is very active, with lots of people posting their scripts, indicators, ideas, and trading strategies. They are eager to help with any Pine Script trading questions.

Overall, these three resources provide ample support for finding answers to coding issues in Pine Script.