ChatGPT o1: Python Strategy Makes 432% — Transcript

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1. 0:00hey guys it's s today I want to do
2. 0:01something a bit different so as you know
3. 0:03open AI recently released their latest
4. 0:05model called the 01 preview which is
5. 0:08supposed to be PhD level smart so I was
6. 0:10curious to know how helpful would it be
7. 0:12for us to use it to write a strategy and
8. 0:15turn it into Jess code so we can see the
9. 0:17results so that's exactly what I did so
10. 0:19let's get right into it oh before I
11. 0:21forget we're going to have a giveaway as
12. 0:22always so make sure to stick around
13. 0:24until the end of the
14. 0:26video if you go to the GPT store and
15. 0:29look up the word jesse you can find the
16. 0:32custom GPT that I released months ago
17. 0:35which would help you write strategies
18. 0:37and also turn your ideas into the syntax
19. 0:40that Jesse accepts so we already had
20. 0:43that but unfortunately at the moment we
21. 0:45cannot use that with the o1 preview
22. 0:47model and that's what I wanted to do so
23. 0:49instead I opened a new chat and I simply
24. 0:52said I need you to write me the suo code
25. 0:55for an algorithmic trading strategy that
26. 0:57is Trend following now I tried countless
27. 1:00prompts and almost none of them were
28. 1:01good enough for us to be able to use
29. 1:03them until I came up with this one
30. 1:06please include the following details
31. 1:08entry signals exit signals technical
32. 1:10indicators used use one Bas onine
33. 1:13indicator and at least another one for
34. 1:14confirmation as for Baseline I need you
35. 1:16to Define one Trend property and a big
36. 1:19one which would use a bigger time frame
37. 1:21in these properties don't simply say if
38. 1:23the price is bigger than the moving
39. 1:25average if you are using moving averages
40. 1:27make sure there are multiple of them and
41. 1:29compare the values for them use at least
42. 1:32one indicator to filter out ranging
43. 1:34markets which happen to be like the
44. 1:36biggest Factor open positions with the
45. 1:38entire Capital because later I want
46. 1:40myself to adjust my position sizing cuz
47. 1:43it wasn't really helpful with that stop
48. 1:45loss and takeprofit targets use an
49. 1:47indicator to calculate them instead of a
50. 1:49specific percentage number which is
51. 1:50something I absolutely hate suggest time
52. 1:53frame for trading the market that I will
53. 1:55be trading is BTC UC and it gave me the
54. 1:59sud as you can see here it sounds okay
55. 2:03and you might be curious why did I ask
56. 2:05for a studio code and not the python
57. 2:07code well the reason is chat GPT is not
58. 2:11really familiar with the Jus syntax it
59. 2:13is a bit but not as much as I want it so
60. 2:17the custom GPD that I had made before is
61. 2:20much more helpful with that so I just
62. 2:22just simply copied the studio code and
63. 2:25went to our custom GPT and said convert
64. 2:28and I just pasted the sud code and this
65. 2:31is the result that it gave me so this is
66. 2:34the python code for Jesse and this is
67. 2:37the key points so it is explaining how
68. 2:39it works which is really really helpful
69. 2:41if you want to get familiar with it so
70. 2:44let's copy first the name of the
71. 2:46strategy go to Jesse to the strategy
72. 2:49section create a new one paste it here
73. 2:52and just so that we can find it easier
74. 2:54I'm going to add the word AI to
75. 2:57it all right so let's go back here copy
76. 3:02the entire code and paste it here save
77. 3:05it go to the back testing tab now which
78. 3:09time frame should we trade well it said
79. 3:12the 1 hour chart for exit and entry
80. 3:14execution which would be our trading
81. 3:16time frame and for big Trend analysis it
82. 3:19would be the 4 hours okay so I'm going
83. 3:22to change this to 1 hour and as for date
84. 3:25I picked since the beginning of
85. 3:272022 up until 20 24 until the 7th month
86. 3:32and everything else seems fine so let's
87. 3:35run it oh sorry I forgot to choose the
88. 3:38correct strategy so it was Trend
89. 3:40following AI so let's run it again and
90. 3:44we're getting this error I want you to
91. 3:46see this error because I've seen many
92. 3:48beginners with Jesse facing this one and
93. 3:51usually the reason is because the name
94. 3:53of the strategy and the name of the
95. 3:55class are not the same so if I go back
96. 3:57here and let's quickly go to the editor
97. 4:01for this strategy so the name of it was
98. 4:04supposed to be Trend following AI but
99. 4:06when I copied it I left out the word Ai
100. 4:09and that's why we were getting that
101. 4:10error so if I go back and run it again
102. 4:12this time that error should go away now
103. 4:15we're getting another okay the function
104. 4:17object has no attribute shape so let's
105. 4:19go to our editor and look up Trend
106. 4:23following
107. 4:26Ai and let's clean this up a bit and
108. 4:30look for errors that we can fix so right
109. 4:32here you can see that we're getting a
110. 4:33warning from my editor which is py charm
111. 4:36and it is pretty smart so it's
112. 4:39saying actually it doesn't matter what
113. 4:41it's saying let's just check it because
114. 4:43it is using this just like a property
115. 4:46but if I go here you can see it didn't
116. 4:48Define the keyword property so it just
117. 4:51defined a function so that's why we were
118. 4:53getting
119. 4:54that so now the error is gone so let's
120. 4:59go back and run it again okay it looks
121. 5:01like it is stuck on some kind of loop
122. 5:04but why is
123. 5:06that okay so you see here it defined the
124. 5:10name of the exchange as binance which
125. 5:13isn't true that's not the name we're
126. 5:15using here it's binance perpetual
127. 5:17Futures and to make sure you don't get
128. 5:19it wrong let's define this dynamically
129. 5:21so instead I will say self.
130. 5:25exchange and the symbol is correct but
131. 5:28it's still let's do the same here
132. 5:31and the time frames are right but
133. 5:33because this is my trading time frame
134. 5:35I'm going to replace it with self. time
135. 5:38frame all right let's try it again all
136. 5:41right this time we're getting Mac the
137. 5:42object has no attribute histo so let's
138. 5:44go here and look for other warnings
139. 5:48let's remove this cuz we're not using it
140. 5:50and then we have here and that's because
141. 5:53in Jesse the word is H not
142. 5:56histo and there's also one case here
143. 6:00and that's it all right let's run it
144. 6:05again all right it got executed that's
145. 6:09good and the results aren't great but if
146. 6:13you see what while the price was going
147. 6:15up our Equity gear also went up so I
148. 6:18think it has still some potential it
149. 6:21didn't do almost anything during the
150. 6:23downtrend which is a bit
151. 6:25weird
152. 6:26and during the range Market
153. 6:30it went a bit down but not too much okay
154. 6:32so it's not that bad so let's go back to
155. 6:35the
156. 6:35strategy and here we can see that it did
157. 6:39not Define the shoot short and go short
158. 6:41functions and that's why it is not
159. 6:43taking any short trades so if I go down
160. 6:46here you can see that the Longs are 100%
161. 6:48of the times and the shorts are 0% so
162. 6:51let's define the shot short function and
163. 6:57hopefully copilot will help us to write
164. 6:59the opposite of our shootong conditions
165. 7:02here and it did let's also Define the go
166. 7:06short function again using co-pilot so
167. 7:10let's go back and run it
168. 7:13again all right so now instead of 300
169. 7:16and something is taking 1,600 trades so
170. 7:19it is taking short trades if I go down
171. 7:22here you can also see it here so that's
172. 7:24good but the results aren't great so now
173. 7:28at this point I want to change the code
174. 7:30a bit based on my own knowledge that I
175. 7:33usually do to improve the results so
176. 7:36firstly I don't want to use the 1H hour
177. 7:39time frame I want to use the 4 hours
178. 7:41because I found it to work significantly
179. 7:43better with Trend following strategies
180. 7:46so I'm going to remove this candles 1
181. 7:49hour
182. 7:50here and I'm going to select whichever
183. 7:54place that was used and simply use self.
184. 7:56candles which will give us the trading
185. 7:59candles for our current session which
186. 8:01would be whatever time frame you use now
187. 8:05I'm going to change the 4 hours for our
188. 8:07bigger time frame and use the 6 hours so
189. 8:11I will also rename this from 4 hours to
190. 8:156 hours all right now let's go back and
191. 8:20change our trading time frame from 1
192. 8:22hour to 4
193. 8:24hours and run it again and the results
194. 8:28is significantly better
195. 8:30now we are finishing in profit with
196. 8:3360% the max R isus
197. 8:3728% the win rate is at 52% so these are
198. 8:42actually decent results but let's take a
199. 8:46look while we had a downtrend our Equity
200. 8:49care went up which is exactly what we
201. 8:51wanted however here you could argue that
202. 8:54this is a ranging market and we didn't
203. 8:57do great which is typical for a TR
204. 8:59falling while the price was going up we
205. 9:02also made some nice profits so the way I
206. 9:05see it we need to avoid the ranging
207. 9:07market and in fact if I go to the source
208. 9:11code we can see that the strategy is
209. 9:13already using the adx to avoid ranging
210. 9:16conditions but the threshold is set at
211. 9:1925 which I think is a bit low so I'm
212. 9:22going to replace this with 40 and run it
213. 9:27again and now
214. 9:29we finished with 87% profit with a Max
215. 9:33throw down of minus 10% which is
216. 9:35brilliant because usually we're okay for
217. 9:38our Maxon to go as high as 20 or even
218. 9:4130% so that means I can easily go here
219. 9:46and change my position sizing to use
220. 9:50more Capital so here this is my quantity
221. 9:54I can just simply multiply it let's say
222. 9:56by three and also do the same for the go
223. 10:01short and run it again all right so
224. 10:04we're getting this error which is
225. 10:05basically saying we run out of margin
226. 10:08and that's because I haven't changed my
227. 10:10leverage number so it is currently set
228. 10:13at two so let's increase this to
229. 10:18four now again yes it is set to four but
230. 10:22I'm still using three I'm just using
231. 10:24three times of my Capital but I set it
232. 10:26to four just in case to uh you know my
233. 10:30trading fees or anything like that won't
234. 10:31cause us issues so let's run it
235. 10:40again and now we are finishing with 4
236. 10:4532% profit with a Max R of minus 31%
237. 10:50which is acceptable to me now obviously
238. 10:52there are much more optimizations that
239. 10:54we can do to this strategy and in fact I
240. 10:57am going to keep working on it and
241. 10:59create a premium version of it and
242. 11:01submit it to our strategy index page on
243. 11:03our website and I will also submit this
244. 11:05free version to our website that you can
245. 11:07use now this was a new type of video
246. 11:09that I just did I'm not sure if you guys
247. 11:10liked it or not if you want me to try
248. 11:12out other scenarios with AI or other
249. 11:15ways we can use it to write new
250. 11:16strategies let me know down in the
251. 11:18comments so that I can make more videos
252. 11:20like this one now before I leave you
253. 11:22we're going to have a giveaway a random
254. 11:24user who likes this video posts a
255. 11:26comment and subscribes to the channel is
256. 11:27going to receive 1 million bnk token all
257. 11:30right let's pick the winner from my
258. 11:31previous
259. 11:33video and the winner
260. 11:35is huge fan brother please don't stop
261. 11:38what you're doing this is hands down the
262. 11:41best framework on the market right now
263. 11:43and you're absolutely killing it thank
264. 11:45you so much for your super nice comment
265. 11:47please reach out to me so that I can
266. 11:49send you your bunk tokens thanks for
267. 11:51watching and I'll see you in the next
268. 11:54one w w
269. 11:59oh