Step By Step Guide: Making Money With A ChatGPT Trading Bot In Minutes

Introduction

In this guide, I’m going to demonstrate how to create a profitable trading strategy using ChatGPT in less than seven minutes. Since the launch of this AI, it has showcased impressive capabilities, from passing law exams to identifying security vulnerabilities in major banks. Most importantly, it has proven beneficial in the financial markets. In my previous video, I showcased how ChatGPT helped me develop a trading strategy using the Relative Strength Index (RSI) and moving averages, which achieved a remarkable 70% win rate. I still rely on this strategy today, and it has even enabled me to retire my cat, Mykonos.

Today, I want to share my knowledge to help everyone else retire their cats by teaching how to create a trading system with ChatGPT. You don’t need to be a trader or a coder; all it takes are a few sentences. I'll guide you step-by-step in transforming those sentences into a strategy on TradingView. Please consider subscribing and liking the video, as Mykonos would surely appreciate it. Stay tuned until the end, where I will reveal the trading strategy I’m coding.

Getting Started with ChatGPT

Let’s head over to the OpenAI website and get the first line of code for our TradingView strategy. These prompts are particularly crucial, especially if you lack coding experience. I’ll go back to TradingView, copy the first line of the code, and paste it into the Pine Editor. We’ll name our strategy “RSI strategy,” as that will be the basis of our approach today.

Next, I will request ChatGPT to add code that specifies entering a trade when RSI is below 30 and selling when RSI is above 70. This gives us a straightforward entry strategy to work with, allowing us to buy low and sell high based on RSI readings.

Enhancing the Strategy

However, I also want to capture bearish market movements, so we need to incorporate short positions. I’ll ask ChatGPT to write the code to short the market when RSI is above 70 and to buy back that short when it's below 30. The result is a strategy that enables us to make money regardless of market direction, utilizing the fluctuations of the RSI.

After making these adjustments, I’ll copy the full code back into TradingView. It’s crucial to save the code and verify its validity. I encountered an issue stating “version 2,” so I’ll add a statement at the top to indicate we are using version 5, the latest update.

Once I update the RSI code, I want to see how it performs. I’ll add it to my chart and analyze several parameters, including profitability percentages and the number of trades.

Testing and Refining the Strategy

To test this strategy, I’ll aim to scalp on SPY, operating on a one- or three-minute chart. I’ll adjust conditions—like entry and exit points—based on profitability factors. For example, adjusting entry points from 30 to 35 could affect profitability. I want to ensure I’m capturing both long and short trades effectively given the current market volatility.

While conducting a backtest, I realize I need to ensure we exit positions at appropriate points to avoid confusion in the strategy. Thus, I’ll refine the exit conditions: long positions at 50 RSI and short positions at an even tighter margin.

After implementing these changes, I monitor the results for potential alerts triggered by the strategy, which can send notifications to my phone, email, or even through Discord, making it a versatile tool for trading.

Live Trading Results

On the first day of using this automated strategy, I engaged with the market using a 10-second chart for SPY. The bot generated a profit of $ 7 on its first trade, showcasing its capability. After applying this bot, I realized it could generate a potential passive income of about $ 300 per day.

After two days of running the bot, I noted a total profit of $ 100 from a paper account, which translates to an impressive potential of $ 12,000 in passive income annually. My trading bot was able to maneuver through various trades successfully, capitalizing on market volatility.

However, I encountered challenges when the market became aggressively bullish, causing losses from shorts. Nonetheless, by adjusting the strategy—like avoiding trades during high-volatility times—this approach can still yield substantial returns.

In conclusion, this quick walkthrough illustrates how ChatGPT can assist in creating a profitable trading bot in mere minutes, turning AI technology into passive income.

Keyword

ChatGPT, Trading Strategy, RSI, Profitability, TradingView, TradingBot, Algorithms, Passive Income, Financial Markets, Short Positions.

FAQ

Q: What is ChatGPT?
A: ChatGPT is an AI developed by OpenAI, capable of understanding and generating human-like text based on user prompts.

Q: Do I need coding experience to create a trading bot with ChatGPT?
A: No, you don't need coding experience. The process can be done with simple prompts and adjustments.

Q: What type of strategy did you implement using ChatGPT?
A: The strategy is primarily based on the Relative Strength Index (RSI) to determine when to enter and exit trades.

Q: Can I make money using this trading strategy?
A: While the strategy has shown potential for profitability, trading always involves risk, and results can vary based on market conditions.

Q: How long does it take to set up the trading bot?
A: You can create a trading bot in less than seven minutes using the guide provided.

Q: What kind of returns can I expect from this strategy?
A: Results can range significantly based on market volatility, but in testing, the strategy showed impressive potential for generating passive income.