ChatGPT made these TradingView strategies

hey what's up Traders welcome back to
another video in today's video we are
going to be exploring chat GPT again so
in a previous video I about a year ago I
showed you guys what chat gpt3 was
capable of with pinescript and uh let's
just say it was not good it was pretty
appalling but chat GPT 4 the premium
version of chat GPT the latest version
is a different story so let's have a
look at that today I think you guys are
going to find the results pretty
interesting I know I did
[Music]
all right so the plan for today is to
let chat CHT write all of the code I
might do some editing here and there
just to tweak the script but the whole
script the foundation of the script is
going to be written purely by chat GPT
based on prompts that I give it
questions I ask it so to do that I'm
going to be using a book my favorite
book one of my favorite books on trading
I threw out the jacket cover so you'll
have to deal with the spine there it's
called Unholy Grails a new road to
wealth by Nick ratch now my version of
the book is pretty knacked cuz I've read
it through several times um I've even
got it signed look at that how exciting
U and in today's video we are going to
be focusing on two systems in this book
to start with maybe I'll revisit this uh
Series in the future if you guys are
really interested in it but for today
today we'll keep it simple we'll keep
the video as short as possible and stick
to two systems in this book the thing I
like about this book is that these
systems are purely systematic rules
based no subjectivity no discretion
they're literally just black and white
rules you tell the system what to do and
the system does it with no input from
you other than parameter tweaking so
that's why I'm using this book because
with computers uh when it comes to
telling it what to do simple is better
obviously and chat GPT has come a long
way but it's still got some limitations
so the more incise we can be in our
commands the better so to start with a
bookmarked a couple of uh systems here
and by the way if you haven't read this
book if you don't have a copy of this
book you need to get a copy I'll leave
it in the pin comment below a link to it
um it's a fantastic book it really is
it's a must read for any serious
systematic Trader um the main system
which we'll cover in a moment the uh
Ballinger breakout strategy that's I
can't angle this to the camera the the
Ballinger breakout strategy which is
hard to see there but you'll see it in a
moment on the charts when I tell chat
GPT to write the scripts it's a very
simple system it's quite old now but it
still stands up so it's pretty robust to
this day I did some testing on it
yesterday through real test on a
portfolio based level SO trading
thousands of stocks with a 20 position
portfolio and it still does pretty good
so we'll stick with that to start with
um let me outline the rules so the whole
concept of this system is um I'll throw
throw it on the charts real quick just
so that we can see what we're doing all
right so the book outlines this is a
daily chart system long only for
equities so let's have a look at this
Market real quick the book outlines that
the Ballinger band must be based on a
100 period SMA and it uses two different
standard deviations so for the upper
band we're using a three standard
deviation if price closes Above This
upper band we buy for our stoploss SL
triling stop uh we use one standard
deviation from the low uh from the the
middle moving average the base Anchor
Point for the for the Ballinger band so
if price closes below this band we exit
any open positions it's a trend
following system
essentially and um very simple those are
the only rules literally it gets a
little more complicated later on as we
build on it so we'll add a regim filter
will um and in the in the book it's
based on a portfolio of stocks instead
of a single market system so you would
trade in the book it says 20 different
positions 20 different uh stocks at a
time for today because trading view is
incapable
currently of doing portfolio based
testing we're just going to cycle
through some systems and just see what
chat GPT is capable of that's the main
point of this um video it is not
investment advice it's not trading
advice do not get your trading advice
from chat GPT do not rely blindly on
chat gpt's code to trade it's a very
very bad idea as I'll show you later in
the video um examples of why that's the
case but chat GPT has come a long way
and it's a very very valuable tool for
us as programmers and Traders so let's
get into today's video by converting
this initial Ballinger breakout system
into pinescript using chat GPT now as
mentioned this is uh chat gbt 4 the
premium paid version of chat G uh chat
gbt currently it's I think $20 a month
to get access to this it is worth it
compared to chat gpt3 especially for
pinescript that's because chat gpt3 is
only trained up to 2022 I believe
internet information and so it's
outdated it doesn't have the latest
pinescript syntax it's trained back on
pinescript version 4 syntax however chat
GPT 4 is trained on old version 5 syntax
it's not up Tod dat currently there are
a lot of new features it's not aware of
but um it is aware of the base Syntax
for the latest version of pinescript so
we can get some decent scripts out of
this so first of all I'm going to start
with a prompt a simple prompt I want you
to write a script for me in pinescript
version 5 Syntax for the trading view
platform can you do that for me all
right so it said absolutely I can help
with that it knows what we want now we
just need to feed it the information the
parameters of the script I've written
these prompts out in advance to save
time in just notepad and I'm just
copying and pasting them in but I'll
read them to you as I go I want you to
write a strategy script the system is
long only trades the daily chart and
does not use margin the rules are as
follows one enter long if the market
closes above its upper Ballinger band
set to a 100 period moving average for
the band and three standard
deviations two exit the entire position
if the market closes below the Ballinger
band's lower band also set to a 100
period moving average for the band and
one standard deviation let's see what it
does here we go this script is for
educational purposes and should be
tested thoroughly before any live
trading good advice is doing the
disclaimer for me so far looks okay it's
not a perfect script uh I don't need to
hear it tell me how to do this let's
just copy this code or you can click up
here copy code jump over to my charts
paste it
in now I've just pasted this in
completely from the uh chat GPT code box
let's save the script see if it works
cannot compile script that's a good
start okay strategy. exit must have at
least one of the following
parameters okay so not a great start for
chat GPT 4 I have to admit I don't think
we need this line of code at all cuz we
have this exit clause here this exit
condition so it doesn't need a strategy.
exit function there we go perfect not
bad 500% return on this stock with a 90%
draw down meaningless on a single Market
but the script let's get rid of my
Ballinger band there the script appears
to be working I did have to modify it
slightly there I had to remove that
redundant piece of code at the end this
strategy. exit now before I started
recording this video I did ask it these
questions already um because I wanted to
make sure I wasn't wasting my time and I
wanted to be prepared um in advance for
anything that that throws at me and I
have to admit the first time I asked
that uh this exact prompt it did spit
out a script that worked without any
editing so I don't know why the second
time it included this ER erroneous line
of code uh but that's that's the catch
with chat GPT it's a valuable tool but
it's not very consistent at times
but anyway this script is doing what
it's intended to do we're not displaying
the Central Moving average so let's go
back and ask it to do that can you add
the Central Moving average to this
script as a
plot I'll fast forward all this for some
reason it takes a long time to print
this stuff I don't know why it doesn't
just print it out immediately still
included the erroneous line of code
that's okay let's copy that paste it in
remove that line of code save the
script
uh there we go there's our 100s SMA
let's add on a Ballinger band really
quick just to make sure that this is in
fact drawing the correct indicator
values so we need a 100 period with a
three standard
deviation looks good remember the lower
band is one standard deviation so that's
going to be off here we set that to
one now it matches the bottom band
it's
working so pretty cool pretty powerful
stuff I didn't have to write a single
line of code there in fact I had to
remove code to get this script to work
so pretty interesting stuff chat GPT is
coming a long way when it comes to um
pin script at least and coding in
general I have to admit I work on a few
hobby projects in my spare time some
gaming stuff making games working on
modding existing games just for fun um a
lot of nerdy coding stuff and I use
chaty all the time to assist me in stuff
that I don't understand for example 3D
Vector
math completely outside my pay grade um
but if I need to ask it to do something
in 3D space uh sometimes it will just
give me a formula that I can plug into
my code and it just works and I don't
understand why it works but it works so
that's really cool this is a very
powerful tool that is going to be
invaluable in the future and if you're
not learning and playing around with
these um language models uh you're
missing out really are this is the
future um in terms of another tool in
our tool belt um I remember when I
started coding you had I used notepad um
literally just Microsoft Notepad back in
2005 I think is when I started to write
my first code maybe even sooner than
that
and autocomplete was not a thing typing
in something like uh strategy Dot and
then having this list of functions
contained within the strategy library
that didn't exist back when I started
coding at least it wasn't easy it wasn't
inbuilt into every coding um editor ever
um so much of coding writes itself
nowadays it's amazing it really is we
are so blessed to be living in a time
where this these features exist and chat
gbt is going to take that to the next
level well not chat gbt specifically but
AI language models are going going to
integrate with coding Platforms in the
future there's no doubt and we will be
able to do things like ask it to spit
out a template for specific purpose and
it won't be perfect all the time but
this is pretty close now none of these
parameters are user
inputs um we could ask chat gbt let's
say can you make make the system
parameters user
inputs see what it does all right right
still included this line of code at the
end I don't know why it's doing that but
anyway that's fine let's paste this in
get rid of that last line of code save
it and check the settings menu let's
change it 50 period moving average it
works very cool very
cool change our standard deviation to
two Works amazing very cool stuff again
I haven't written a single line of code
here I've just asked chat gbt to write
it for me and it's done a decent job I
have to admit it's not perfect but it's
decent even the formatting is impressive
the commenting I mean this is the exact
structure that I would normally use I
normally put my plots at the very end of
the script but hey that's just
nitpicking I mean this is formatted well
the descriptions are good very good a
little bit too verbose if you ask me a
bit too
detailed but everything here is is spot
on to what I wanted so that's very
impressive all right so in the book
there's one more feature of this
Ballinger band breakout system which is
a regime filter a regime filter is where
you reference an an external market so
in this case we're trading stocks so
let's go to something like apple if we
were trading Apple or a US market a
regime filter in that context would be
like a trend filter keeping you out of
bare markets so we don't want to be
buying markets during the 2008 financial
crisis for example um or during co co
selloff
and a regime filter keeps us out of
trouble by overlaying a 200 period index
filter over the system so let's ask chat
GPT if it can add that into this script
all right so here's my prompt okay now I
need to improve that script I need to
add what is called a regime filter this
filter will only take trades if the S&P
500's daily price is trading above the
S&P 500's 200 period moving average a
lot of numbers there can you add that
filter to this script let's see what the
robot does to integrate a regime filter
based on the S&P 500's daily price being
above its 200 period moving average we
need to use trading view security
function correct in this example I'll
assume the ticker symbol is SPX but Ure
that you're using the exact symbol used
on your data provider correct good
advice this updated script will include
the regime filter Logic the script will
only enter trades when the condition of
the S&P 500's trading above its 200
period moving average is met perfect
let's see if it oh it's not done
yet still included that erroneous line
code I could probably tell it to stop
doing this but I won't bother it's easy
to easy to
remove uh let's have a look at our raim
filter code all right so we're getting
the daily close using the security
function on the S&P 500 symbol which is
a user input that's good very good 200
SMA on S smps close on the daily chart
regime filter spot on let's see if this
script compiles there we go appears to
have
worked um what's this line here oh these
are drawing tools let me remove them um
okay all right so I can't turn the
regime filter on or off um let's quickly
ask it if it can make can you make
whoops whoa can you make the regime
filter a user input I'll fast forward
this bit certainly I'll adjust the
script I like how it just tirelessly
does what you say um that's kind of nice
I have to admit all right let's paste
this code in see if it works oh again
we've got this line of code at the end
let's get rid of that so as you can see
chat gbt not perfect but pretty good all
right so let's see what happens when we
turn our regime filter off all right we
get a much bigger return on
Apple let's turn it back on and keep an
eye on the draw down the point of a
regime filter is more to limit draw down
it's a risk management tool more than a
profit maximization tool so let's turn
that on see what happens oh didn't
change the draw down at all interesting
let's try Tesla let's see what happens
when we turn it off on Tesla still no
difference it only took six trades on
Tesla
anyway um I don't know what's the stock
we could test it on let's try JP Morgan
all right so it is it is working because
when I turn it of the stats here change
um it's just rarely coming into effect
it seems again these are s single Market
tests in an actual portfolio based test
a regim filter has a big effect because
you're trading so many stocks so many
markets it does limit um the amount of
Trades that are taken in non-ideal
circumstances so anyway this first
script is a success we have successfully
converted the Ballinger breakout
strategy or system from Unholy Grails
the book based on the original rules and
it's working this is exactly what I
expect we're buying breakouts Above This
upper band we are selling closes below
the lower band that's exactly what the
system was intended to do successful
test right there very impressive chat
bd3 would not have been able to do this
um or it might have been but it would
have been in version 4 syntax and would
have required some editing and
modification which goes against the
whole purpose of using this tool so
before we wrap up this video Let's do
one more system out of the book so the
system I chose to do is called a moving
average Channel system the Mac is
created using two moving averages the
first is a 10 period moving average of
the daily highs as opposed to closing
prices which we usually use a moving
average on and then next it uses a 8
period moving average on the lows of
price action as its stop- loss
the book goes into more detail here
again if you haven't read it you really
need to get your hands on it um but
basically the rule here is we have a 10
period SMA based on let me get my dra
drawing tool out and I'll hide hide the
script we're going to have a 10 period
SMA based on candle highs and an 8
period based on candle lows and that'll
give us a channel and the system is we
need five candles that print entirely
above the upper band so the low of this
These Bars must be above the upper band
band all five of them consecutively
before we buy and then it's the same for
sell signal we need five bars closing
below the lower band where all of its
Highs are well below the band we can't
touch the band if we touch the band our
counter resets and that's the system
it's very simple um so let's ask chat
GPT if it can make a script based on
these rules okay so here is my
prompt all right now I want you to write
a brand new strategy script unrelated to
the last the system is long only trades
the daily chart and does not use margin
the rules are as follows plot a 10
period upper moving average based on
candle highs and an 8 period lower
moving average based on candle lows
enter long if five consecutive bars
print higher than the upper moving
average if a bar touches the upper
moving average reset the counter we need
five bars to print with their low
entirely above the upper
Ma I'll say same name for the lower ma
but the highs must be below it and then
number four exit position if five
consecutive bars print lower than the
lower moving average let's see what chat
GPT can do with this
prompt here's a pinescript strategy for
trading view that implements your moving
average channel strategy the script is
structured to follow the specific rules
you've outlined focusing on a longly
system that trades on the daily chart
without using margin the script includes
conditions for entering and exiting
positions based on the relationship of
consecutive bars to the moving averages
of candle highs and lows all right
there's our script it looks a bit better
than the first one in terms of not
including erroneous lines of code at
first glance at least let's see how it
stands up in the
editor save the script it seems to have
worked I mean this is a pretty simple
system so I'm not surprised this one
worked um sweet okay so we have our
parameters they're not user puts but
that's fine that's easy to fix uh we
have a 10 period upper and 8 period
lower ma length we're getting the smas
we're plotting them we're counting how
many bars printed above or below the
corresponding moving average and if we
have our consecutive five bar um print
we enter our trade so let's have a quick
look at how this works on let's go to a
different Market all right here looks
like this looks like a good trade to
examine all right so we've got one 2 3
four five bars that printed above the
upper band we open a trade on the next
bars
open that meets the rules we don't have
five bars in a row that print below any
of these moving averages the lower band
until here so we have 1 2 3 4 five I
guess that would be pretty close this
bar here since it doesn't have a wick uh
it did even though the moving average
crosses over the
corner um I think we'll find that the
opening price was below that band um so
we do have 1 2 3 4 five consecutive bars
below the band and we exit on the next
bars open so there you go um wow I'm I'm
going to guess that this stayed in a
trade for a very long time let's zoom
out and see if we can find that trade
yeah okay there's been a few of them
actually quite a few of them um so this
is data mining at this
stage this system would not perform this
well on most markets it just so happens
to have performed really well on Apple
because it's bought a lot of these
monster rallies and stayed in them for
very long time um that's not going to
work on most markets but very
interesting it uh it worked that's the
takeaway chat GPT did successfully write
this script feel free to adjust the
script oh that's very kind of it um it
gives us permission to adjusted script
or ask for additional features okay on
that note let's get back to the book an
interesting note in the book here um if
I find the page is here Nick says if a
fault had to be identified with this
system it would be that the exit
mechanism is based on a pattern sequence
so what he means by that is a
Candlestick pattern sequence the reason
that's a fault or um a risk in this
system is because candle patterns aren't
guaranteed to to ever appear on a chart
you could go months without this
condition being met a five bar
consecutive low for the entry it's not a
big deal you know because for an entry
we're not in a trade um the entry can be
as as complex as we want really to a
degree there's a balance there um if
it's too complicated it won't take any
trades um or not enough trades and if
it's not complicated enough it'll take
too many trades this particular system's
entry criteria is okay in my opinion and
I think Nick's as well it's acceptably
it's not particularly complicated but it
will filter out a lot of Trades so
that's not a bad thing but the exit is a
risk because let's have a look in the
example here Nick points out AGL energy
which is an Aussie stock between April
2010 and April 2021 so let's sorry 2011
so let's go to AGL on the ASX and go
back to 2010 and I'll show you what he
points out in the book here is the
trading question so in the book this
book was published back in um this book
was published back in 2012 um so quite a
while ago now but um these systems some
of them at least the Ballinger band
system for for example does stand up to
this day um it's not amazing it needs
tweaking probably but it's it's these
these systems are quite robust which is
what I love about niw work now what's
wrong with this trade let's zoom out the
chart and see if you can guess what's
wrong with this trade here that we
opened well it stayed in a
trade for nearly 3 years before it
closed for a loss so we held a trade for
3 years nearly um and took a 3% loss on
that position that's pretty nasty now 3%
loss not a big deal tying up your
capital for 3 years in a trade that goes
nowhere bad very bad very bad Trader
that's uh that's bad opportunity cost
right there and so the book proposes a
solution for that which is a
25% roughly it lands on a 25% trailing
stop from the high so the highest price
after entering a trade if the stock
Falls 25% which is a long fall uh we
exit the trade that's just an example
there are plenty of other examples we
could have a Time based stop if you're
in the trade for longer than x amount of
days get out of it um we could tweak the
exit reason so that instead of five bars
being below the moving average maybe we
only need five
lows um to be below the moving average
um obviously these tweaks will change
the nature of the system and its
performance metrics but this is
something you need to be care careflow
when you're developing A system that
uses a SE sequential Candlestick pattern
for an exit so anyway what's ni solution
trailing stop let's ask uh chat GPT if
it can add that can you adapt that
script so that it if the market closes
under 25% below its entry price the
system exits stop loss now this should
say below the highest price after entry
in a trade the system exits stop loss
and make that percentage a user input
let's see what chat GPT does with this
prompt all right it's going to track the
highest price okay it's done this in a
very convoluted way in my opinion but I
think it'll work let's have a
look again not perfect but if it does
the job it saves us
time um that's
valuable okay we've already got an error
I see what the problem is already um you
can't use Min Val Max Val unless you
specify what type the input is so if we
put input. int that should fix that
error there we
go um now it still didn't exit this
trade for some reason uh because the
close has to be below the let's change
this to low and save the code see if
this exits the trade down here it should
do and it doesn't okay
interesting it should have exited the
trade somewhere around here so
something's wrong with this code let me
add some debug code on the end here to
see what's going on okay I see what's
happening here was a new entry setup 1 2
3 4 five bars printed above
our um upper band I'm guessing that
condition resets our highest price and
it does so if I change this to say
answer strategy. position size equal Z
that should fix that issue let's have a
look there we go perfect fixed
it as you can see I needed to modify
that script slightly if you didn't know
Pine script quite well then this might
be completely useless to you if you're
not experienced with pine this script
would not have worked and you might not
have known why so it's still necessary
to understand pin script I think in
order to use chat GP and tools like this
in your coding process now if this was a
simpler script maybe you'd get away with
it um I think chat GPT is fantastic for
spinning out templates for educating you
about Concepts maybe relating to
pinescript but I don't think anything
can replace um actually learning the
language yourself I don't think this
tool should be depended on blindly I
think you still need to invest in your
own education as a Trader and learn the
languages you're going to be using
um but chat gbt can help with that
certainly now in this particular case
the trade still was open for uh over a
year here and we still took a 7% loss so
I think even Nick would agree that this
stop loss is not sufficient um I think a
Time based stop would be better maybe it
only kicks in after X amount of days or
x amount of profit um you know we had a
nice profit here of 10% maybe once
you're in 10% profit you ratchet up that
stop loss a bit more um or you get a
little looser on your conditions for
exit maybe instead of five lower closes
you start looking for five lower
lows um regardless of whether they they
touch a moving average the exit reasons
you could use and the creativity you can
use kind of endless U but I thought I
think this was an interesting overview
of what is possible with chat GPT here's
a nice nice trade right here um this
system is interesting I have to admit
this is interesting I wouldn't mind
plugging this into uh into real test and
and playing around with it on a
portfolio based level um I I've been
meaning to revisit all the systems in
this book and do that I did that with
the Ballinger band system yesterday and
and got some decent results so maybe
that's my homework for uh for the next
week but anyway I think that'll do it
for today's video I don't think I have
anything else to say other than uh chat
GPT is amazing chat GPT 4 is a a big
step up from chat gpt3 it talks too much
in my opinion uh but that's that's okay
I think that can be tweaked in the
settings and um this is something to
keep an eye on as coders especially and
as Traders this can really help us it is
a very valuable tool it will not replace
the power of the human brain anytime
soon I still think you need to know what
you're doing with your trading chat GPT
is a perfect example of garbage in
garbage out if you give it bad
information to work on it's going to
give you horrible information back
because even if you give a good
information to work on sometimes it
gives you bad information back so um
knowing what you're doing is still very
important in today's world of trading
and coding but we've got a very valuable
tool here to play with keep an eye on it
in the future definitely play around
with it uh but don't expect it to
replace the hard work involved in
actually learning what you're doing
learning your tools learning your trade
um as a Trader pun intended uh with that
said if you want to learn pinescript and
you're new to pinescript check out our
website I have a five or 6 hour long
free Basics course there completely free
no strings attached um if you don't like
my teaching style or you don't like
pinescript you lose Nothing by checking
that out uh if you do like pinescript I
have a course there teaching you the
entire language and everything I know
about it the Mastery course um so with
that said go and check that out check
out this book Link in the pinned comment
below um yeah good luck with your
trading I love you guys and I'll speak
with you in the next video take
care