Build your own AI for algo-trading with Python — Transcript

Full transcript

1. 0:00Hey guys, so in this video I'm going to
2. 0:02show you how to create your very own AI
3. 0:04quant to help you write algo trading
4. 0:06strategies with Python. With this setup,
5. 0:08you'll be able to use whichever LLM
6. 0:10model that you like, whether it be
7. 0:12locally, such as the ones Olama provides
8. 0:15for us, or the ones that are
9. 0:16cloud-based, such as OpenAI or Cloud
10. 0:19Sonet. Now, by the end of this video,
11. 0:20you're going to have a setup that can
12. 0:21help you write strategies, debug them,
13. 0:24or even improve the results of it. So,
14. 0:26it's going to be really cool. So, let's
15. 0:27get right into it. In case you didn't
16. 0:28know, recently I released the second
17. 0:30generation of our own Jesse GPT. With
18. 0:33the new model, you can use whichever
19. 0:34model that you like, such as the Gro 3,
20. 0:37GPT 4.1 or 3 Mini, or even the Deep Seek
21. 0:41Chat or Cloud Sonnet 3.7. Now, if you
22. 0:43want to use this one, simply sign up and
23. 0:45you'll be able to use it. It has both a
24. 0:47free and a premium plan. Now, of course,
25. 0:49for more expensive models, you're going
26. 0:50to need a premium plan. But here's the
27. 0:52thing. Let's say you don't want to use
28. 0:53this because of a privacy concern or
29. 0:55maybe you don't like our pricing and you
30. 0:57think it's too expensive. Well, that's
31. 0:59when this new setup that I'm about to
32. 1:00show you is going to be really helpful
33. 1:02for you. We can do this setup in a
34. 1:04couple of ways. You're going to need a
35. 1:05software or whichever kind of
36. 1:07application that allows you to use local
37. 1:09models or to use the API keys of third
38. 1:12party cloud providers. Now, the one that
39. 1:14I use is called Jan.ai, which is pretty
40. 1:16cool. It is open source and completely
41. 1:18free and they provide installations for
42. 1:21all the three major operating systems.
43. 1:23Simply go to the download page and get
44. 1:24the one right for your operating system.
45. 1:26The setup is really easy, so I'm not
46. 1:27going to walk you through it. Now,
47. 1:28another really cool project that I found
48. 1:30is called Open Web UI. It is completely
49. 1:32open source and it allows you to do just
50. 1:34the same thing, but I found the setup
51. 1:36for this one not to be as easy as
52. 1:38Jan.ai. So, I still suggest to go with
53. 1:40that one. Now, once you install Jan.ai,
54. 1:42I you're going to see a page like this
55. 1:43which allows you to look for the model
56. 1:45that you want to download. So let's say
57. 1:47I want to get the llama tree model for
58. 1:50example, right? I can simply look for it
59. 1:52here and click the download button and
60. 1:54it will be ready for me to use. It will
61. 1:56even guide me to know which models I can
62. 1:58run and which ones I can't. But the
63. 2:00thing is you're not going to get the
64. 2:01same kind of quality with local models
65. 2:03that you're going to get with the edge
66. 2:05cloud models such as gro or cloud set.
67. 2:08So what we're going to do is to use the
68. 2:10API key of these services. Now to
69. 2:12generate an API key, you can use
70. 2:14platforms such as Antropic or OpenAI
71. 2:16directly. However, if you do that way,
72. 2:19you're going to be limited only to the
73. 2:20models that they offer you. But if you
74. 2:22use another platform such as Open
75. 2:23Router, you'll get access to all sorts
76. 2:25of models. And the thing is, we have a
77. 2:27new model like every week these days. So
78. 2:29I think the best option is to actually
79. 2:31go with this solution. So I'm going to
80. 2:32show you how to do it with open router.
81. 2:34Now I already have an account here. If
82. 2:36you don't simply sign up, it doesn't
83. 2:38even require anything. And one really
84. 2:40cool thing about open router is that it
85. 2:42actually allows you to charge your
86. 2:44account using cryptocurrencies. Now, to
87. 2:45me, that's really great because I won't
88. 2:47have to give them my credit card
89. 2:49information. All right. So, assuming you
90. 2:50already have charge your account from
91. 2:52the credits page. To create an API key,
92. 2:54simply go to the keys page. And here you
93. 2:56can see I've already created two API
94. 2:58keys. And to create a new API key,
95. 3:00simply click on this button. Give it a
96. 3:02name. It could be anything you want. I'm
97. 3:03going to name it YouTube test.
98. 3:06And we can even specify a limit for it.
99. 3:09Now I'm going to give it $1. Click on
100. 3:11the create. And here's the API key that
101. 3:14it has given me. Copy it. And now go to
102. 3:16the Jan AI. Go to the settings page. And
103. 3:19here you can see we have all sorts of
104. 3:21options. Now I'm going to find the open
105. 3:23router. And here I can paste my API key.
106. 3:27Once you do that, you can simply add
107. 3:29model. Click here. Go back to the open
108. 3:31router to the models page. And here look
109. 3:34up the model that you want. Now, as it
110. 3:36happens, last night OpenAI released
111. 3:38offer mini model. So, let's click on
112. 3:40this one and copy the unique ID of that
113. 3:44model. Go back to the NAI and paste it
114. 3:47here. Click on add. And now, if I scroll
115. 3:49down, I should be able to find it. So,
116. 3:51now I should be able to find the key of
117. 3:53the model that I just added. But here's
118. 3:55the thing. I already have some credits
119. 3:56left on my Antropic account. So, I'm
120. 3:58going to use this one. Now, to start a
121. 4:00new chat, go to the thread section.
122. 4:03Click on the new button if you don't
123. 4:05already have one. And here we can see
124. 4:07the instruction section is empty. Now we
125. 4:09can start chatting with it. So for
126. 4:11example, I can ask it to write a golden
127. 4:13cross strategy for me. Now if I press
128. 4:15enter, you can see it immediately begins
129. 4:18writing the code for me. But first it is
130. 4:20explaining what a golden cross strategy
131. 4:22is. What are the entry or the exit
132. 4:24rules? And the code that it is giving
133. 4:26me, it is already in Python. But this
134. 4:28isn't really practical. I'm not going to
135. 4:30be able to run a back test on this. And
136. 4:33even if I do, it definitely won't be
137. 4:35accurate. And even if it was accurate, I
138. 4:37wouldn't have been able to run it live
139. 4:39and actually make some money with it.
140. 4:40Right now, what we need is a setup that
141. 4:42can write the code using the Jesse
142. 4:44framework syntax. Then we'll be able to
143. 4:46run back tests, import data, optimize
144. 4:49it, and even run it to live. Now, to do
145. 4:51that, I'm going to use the exact
146. 4:52instructions that I used to build a
147. 4:54Jesse GPT on our website. Now again if
148. 4:57you don't want to go through with the
149. 4:58setup just sign up and use it as it is.
150. 5:01You can even get it started for free.
151. 5:03But again we need the instructions. Now
152. 5:05where can we find it? Well I open
153. 5:07sourced it on GitHub. So you can find
154. 5:09the repository under our organization
155. 5:12and it is called GPT instructions. You
156. 5:15can also use this URL which I'm going to
157. 5:16put down in the description section of
158. 5:18the video. All right. So here's the
159. 5:19readme file. But what I'm interested in
160. 5:22is this instructions.mmd file. So click
161. 5:24on it. Then click on the row so that we
162. 5:27can copy and paste
163. 5:29everything. Now by the way notice that
164. 5:31this is a giant file. It has all sorts
165. 5:34of strategy examples. It has a summary
166. 5:37of the whole documentation of Jessie
167. 5:38framework. So that's why it's really
168. 5:41long which is also another reason why
169. 5:43it's best to use a cloud version because
170. 5:45if you try to use a local model with
171. 5:48this much instruction at least the
172. 5:50initial request is going to be really
173. 5:52slow. So select all of it, copy it, and
174. 5:55go back to jan.AI and paste it here. So
175. 5:58now the instructions is not empty
176. 6:00anymore. Now let's say I want to see the
177. 6:03result of it for this exact request that
178. 6:06I made here. Write me a golden cross
179. 6:07strategy. So I can just go down and
180. 6:09click on the retry button
181. 6:11here. Now notice the strategy that it is
182. 6:14writing for me this time has the exact
183. 6:16syntax of the JC framework. It is
184. 6:19Python. It's also much cleaner. So,
185. 6:22here's a fast moving average, a slow
186. 6:24one. Here are the inter rules of the
187. 6:27strategy. Here's the position
188. 6:30sizing.
189. 6:32And here's when to liquidate the
190. 6:34position. It also gave me a very short
191. 6:36description of the strategy, but not too
192. 6:38much. So, and that is the result of this
193. 6:40instruction. I asked it to give me the
194. 6:42code, nothing more, nothing less. Now,
195. 6:44let's say this is good, but I wanted to
196. 6:46add, let's say, the ADX indicator
197. 6:48because I want to filter some bad trades
198. 6:50because the thing with the trading
199. 6:51strategy is that it tends to take too
200. 6:53many trades and the trading fees usually
201. 6:55eat our profits. So, I'm going to ask it
202. 6:57to do that. If I press
203. 6:59enter, all right, so it gave me the
204. 7:02exact strategy, but this time it is also
205. 7:05using the ADX. And inside my entry rule
206. 7:09of the strategy, I can say it is
207. 7:10checking to see if the trend is strong
208. 7:13enough by saying whether or not the
209. 7:15current ADX value is above the number
210. 7:1725. Now, of course, I could also ask it
211. 7:19to modify that number if I need to or
212. 7:21even to prepare the strategy using the
213. 7:24syntax for optimization so that we can
214. 7:27find this number dynamically which would
215. 7:29save us a lot of time. Now if you want
216. 7:31to know what other types of things you
217. 7:33can do with it, a good example is to
218. 7:35look at the Jesse GPT page on our
219. 7:37website here. The first one is asking it
220. 7:39to write a golden cross strategy. The
221. 7:41second one says prepare my strategy for
222. 7:44optimization because I find the task of
223. 7:47replacing some of the parameters of the
224. 7:49strategy with the syntax that is
225. 7:51required for Jessie sometimes to be a
226. 7:53tedious task. But when I ask the AI to
227. 7:55do it, it's really easy for it and it
228. 7:57does it immediately. Even the smallest
229. 7:59and cheapest model can take care of this
230. 8:01type of task very good. I can also ask
231. 8:03it to prepare my strategy for live
232. 8:05trading because I want to make sure that
233. 8:08the monitoring stuff are in place. I can
234. 8:10also ask it to suggest other indicators
235. 8:12to improve my already existing
236. 8:14strategies. You get the idea. Just check
237. 8:15out this page and you'll see all the
238. 8:17tips and the latest stuff that I come up
239. 8:19with. And if you can come up with some
240. 8:21stuff that I haven't, let me know and
241. 8:23maybe I add it to this page. But that's
242. 8:25not all. Because all the instructions
243. 8:27are here, you can easily customize it
244. 8:29however you like. So let's say there's a
245. 8:31syntax here that you don't like. It
246. 8:33works for me, but for whatever reason,
247. 8:35you want to improve it. Go nuts. Just
248. 8:37maybe copy this whole file inside your
249. 8:39editor of choice, such as VS Code, and
250. 8:41add a section to it or modify an
251. 8:44existing one. In fact, if it was really
252. 8:45good, maybe submit a pull request to our
253. 8:47repository, and I'll merge it so that
254. 8:49the others can use it and take benefit
255. 8:51from it. Another really cool thing that
256. 8:52you can use this setup for is to convert
257. 8:54the existing strategies on trading view
258. 8:57which uses this syntax called pine
259. 8:59script into python so you can back test
260. 9:01it with Jesse. Now to do that we can
261. 9:04simply look for now you can find them on
262. 9:05the trading view website but another way
263. 9:07is to simply search for it. So I'm going
264. 9:10to say EMA
265. 9:13strategy and there are so many of them
266. 9:15but this one for example is using MACD
267. 9:18and EMA. So let's click on it.
268. 9:25Now you can see the result of the back
269. 9:27test of trading view which by the way is
270. 9:29not accurate. So never count on this.
271. 9:32Trading view is great for charting but
272. 9:34it is not for back testing. For back
273. 9:36testing you want to use something
274. 9:37accurate such as Jesse. But anyways if
275. 9:40the strategy is profitable enough we can
276. 9:43use this code. Just simply go here to
277. 9:46source code and here it is. Now I can
278. 9:49copy the entire thing. I can go back to
279. 9:52Janai and create a new thread. And
280. 9:54notice that the instructions are still
281. 9:56here. But if they weren't, make sure to
282. 9:58copy and paste them again. And I can
283. 10:01simply ask it convert this
284. 10:06strategy into Python code and then paste
285. 10:10the whole thing. And now it's giving me
286. 10:12the Python code. I can copy this whole
287. 10:15thing, go to the JC framework and back
288. 10:17test it with Python, which allows me to
289. 10:19see the actual result of the strategy,
290. 10:21not the fake ones on threading view.
291. 10:23Now, by the way, they aren't really
292. 10:24fake. It's just that it isn't accurate
293. 10:26enough, especially in most cases, it has
294. 10:29the issue of the look ahead bias, which
295. 10:31in Jesse doesn't exist. All right, the
296. 10:33possibilities are endless here. You can
297. 10:35use everything locally on the cloud or
298. 10:37use just GPT on our website. It doesn't
299. 10:39really matter. I open sourced this setup
300. 10:42because my goal for creating Jesse GPT
301. 10:44was not to make money on top of it. I
302. 10:46just wanted you guys to be able to do
303. 10:47research faster and use Jesse more
304. 10:50frequently. Especially for those who
305. 10:52aren't even great with Python, this
306. 10:54enables them to start a good trading
307. 10:57today rather than months later. So, I
308. 10:59hope you enjoyed this video. Thanks for
309. 11:00watching and I'll see you in the next
310. 11:02one.
311. 11:07[Music]
312. 11:08[Applause]
313. 11:11[Music]