How to use ChatGPT for trading (Part 2)

ChatGPT is the topic of the day on the internet! Let's see how artificial intelligence (AI) can be used in the field of online trading (Part 2).

Reading Time: 9 minutes         Financial activity: Trading          Knowledge level: Beginner

Summary

Use ChatGPT as a coding assistant

Conclusions

Use ChatGPT as a coding assistant

I hope you have read the first part of these multiple posts about ChatGPT.

In addition to teaching trading, ChatGPT can also be used as an assistant in programming the code of automatic trading systems.

I will present below some examples based on the PineScript programming language of the (free) TradingView platform.

Let's start by asking ChatGPT if it knows the Pine Script programming language.

ChatGPT (screenshot by Author).

The answer is positive!

Now let's see if ChatGPT can help us write a simple automatic trading system based on SMA(200) and RSI(10).

ChatGPT (screenshot by Author).

This is the answer:

...

ChatGPT (screenshot by Author).

And this is the full code generated by ChatGPT:

//@version=4
strategy("My Trading System", overlay=true)

// Define the moving average length and RSI length
ma_length = 200
rsi_length = 10

// Define the RSI levels for entry and exit
rsi_entry_level = 20
rsi_exit_level = 50

// Define the MA and RSI indicators
ma = sma(close, ma_length)
rsi = rsi(close, rsi_length)

// Buy signal
buy_signal = crossover(rsi, rsi_entry_level) and close > ma

// Sell signal
sell_signal = crossunder(rsi, 80) and close < ma

// Exit signal
exit_signal = crossunder(rsi, rsi_exit_level) or close < ma

// Buy and sell orders
if buy_signal
    strategy.entry("Buy", strategy.long)
    
if sell_signal
    strategy.entry("Sell", strategy.short)
    
// Exit orders
if strategy.position_size > 0 and exit_signal
    strategy.close("Buy")
    
if strategy.position_size < 0 and exit_signal
    strategy.close("Sell")

If you want to learn how to program TradingView, you can read my book: "Learn to program automated trading systems for TradingView from scratch" (watch Our Shop).

Now let's check how it works on the TradingView platform (Remember: ChatGPT works using a database updated until 2021, so the Pine script version used by ChatGPT is the number 4 and not the actual number 5).

First of all, it points out that version n.4 of Pine Script is obsolete (but we already knew that!).

TradingView (screenshot by Author).

However it is able to work (it was applied to S&P 500 index CFD, timeframe 4h, data from OANDA).

TradingView (screenshot by Author).

Conclusions

As you could see in the example shown in the lines above, ChatGPT is able to write an entire automated trading system in TradingView's Pine Script language; therefore it can be used as a valid assistant/teacher for programming.

In the next post, we will continue to exploit these capabilities of ChatGPT in the field of programming automatic trading systems.

Stay tuned!

A sincere wish of good work to all!

Written by F. GRAMOLA (*).

(*) Member of S.I.A.T., the Italian Society of Technical Analysis (member society of I.F.T.A. – International Federation of Technical Analysts).

Warning

We merely cite our personal opinions for educational purposes only.

All trademarks are the property of their respective owners.

Investing and trading are risky. Don't invest or trade money that you cannot afford to lose.

Initial Photo by Rolf van Root on Unsplash.