Crypto traders are making fortunes creating trading bots with ChatGPT

This case highlights the growing role of artificial intelligence in the automation of complex trading operations.

Rekt Fencer developed his ChatGPT assisted trading robot using the Bollinger Band indicator. In fact, some traders use this indicator because of its effectiveness in analyzing market trends.

Its strategy therefore consists of buying when the price goes above the Bollinger band and selling when it goes below it. This tactic helps take advantage of market volatility, allowing traders to predict potential price movements based on statistical data.

Learn more: The Best AI Crypto Trading Bots to Maximize Your Profits.

Performance of Rekt Fencer’s cryptocurrency trading bot. Source: X (Twitter)

Rekt Fencer described a process that others can then replicate, highlighting AI’s ability to automate trading.

First, he adjusted the Bollinger Bands parameters on TradingView, a popular analytical platform among traders. He then guided users through coding the bot, which went through several updates to improve its ability to adapt to changing market conditions. The robot’s integration with ChatGPT was essential in refining its trading algorithm.

The next steps were to duplicate the indicator source code, rename it and make any necessary updates. Finally, the trading logic has been integrated into the system.

“The entry code for the strategy in pinescript v5 is as follows: Enter a long position when the price closes above the Bollinger band and a short position when the price closes below the lower Bollinger band. Close the long position when the short condition is met , and close the short position when the long condition is met”, Rect Fencer shared The ChatGPT prompt.

Rekt Fencer “pasted” the source code below the prompt to tell ChatGPT to write the logic that automates transaction input and output.

The investor also highlighted the importance of solving coding errors, a typical programming problem. So after deploying the input and output logic on TradingView, he also recommended using ChatGPT to effectively diagnose and fix errors.

He also warned of the risks associated with trading. Fencer advised starting with smaller amounts to measure the effectiveness of the strategy before increasing the stake.

This cautious approach thus highlights the crucial need to manage risks, especially when using automated systems capable of executing trades autonomously.

Users must connect their crypto exchange accounts to TradingView to fully automate the trading process. This integration allows the robot to execute transactions directly based on the configured strategy.

Learn more: How to read a crypto chart?

It is important to remember that while AI-powered trading bots like Fencers offer promising profit opportunities, they require a thorough understanding of the technology and market principles. As AI technology advances, its potential to improve trading strategies grows, equipping traders with sophisticated tools to enhance their market performance.

But successful trading always depends on careful strategy planning and strict risk management.

Moral of the story: A trading bot is nothing without its trader.

Disclaimer

Disclaimer: In accordance with the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent information. This article aims to provide accurate and relevant information. However, we encourage readers to verify the facts on their own and consult a professional before making any decision based on this content.

Leave a Comment