how to actually build an ai trading bot (full guide) — Transcript
Full transcript
- 0:00I'm going to show you how to build a
- 0:01trading bot that actually works, whether
- 0:04you trade crypto or stocks. I'm going to
- 0:06run you through how to build one from
- 0:08scratch and what they're actually good
- 0:10for because it's not what most people
- 0:12think. You've probably seen the promises
- 0:13that AI trading bots are like these
- 0:15magic money printers, but the reality is
- 0:17different. They can be highly
- 0:19profitable. I've personally built
- 0:20strategies which have made me over
- 0:22$8,000 a week in pure profit, but I've
- 0:25also had trading bots, especially
- 0:27towards the beginning of my journey a
- 0:28few years ago, which went horribly wrong
- 0:30and cost me tens of thousands of
- 0:32dollars. But, I learned from those
- 0:34mistakes and learned how to set up
- 0:35trading bots the right way, bots that
- 0:37automatically get smarter over time and
- 0:39bots that don't fail. The best part is
- 0:42you don't have to be a coder for any of
- 0:43this. It's actually quite simple. You
- 0:45just might need to get your hands a
- 0:47little dirty, but I'm going to walk you
- 0:48through step-by-step so you don't get
- 0:49lost. And by the end, you'll know how to
- 0:52actually build a trading bot that works.
- 0:54And you'll also know the one mistake
- 0:55that kills people's trading bots so you
- 0:58don't make it. All right, firstly, let's
- 1:00talk about what an automated AI trading
- 1:02bot actually is. A bot essentially does
- 1:05two things. It automates repetitive
- 1:07strategy and it executes better than a
- 1:09human. I used to find in my trading, I'd
- 1:11have the right ideas, but I'd have an
- 1:13execution problem. I'd have a setup, but
- 1:16I wouldn't be at the desk to execute the
- 1:17trade. I wouldn't be able to manage the
- 1:19trade once it's open or I would simply
- 1:21forget to manage the trade and that
- 1:23would result in me losing money. The
- 1:25real value add of a trading bot is that
- 1:27it can execute based on a predetermined
- 1:30strategy that you've given it. And the
- 1:31really important thing which we're going
- 1:32to discuss today is that these bots
- 1:34actually learn over time and they get
- 1:36smarter over time. They learn from their
- 1:38mistakes probably even better than a
- 1:39human because it's coded into the AI.
- 1:42Whereas as a human, you need to go
- 1:44through a lot of psychological
- 1:45reflection to work out why maybe you're
- 1:47not succeeding as a trader. So,
- 1:49ultimately, I view trading bots as a way
- 1:51to get razor sharp execution and I do
- 1:53think over time more and more people are
- 1:55going to be using trading bots and in a
- 1:57few years pretty much everyone will be
- 1:59using one whether they know it or not
- 2:01because the big funds and the quant
- 2:02firms, they are already doing this.
- 2:04Retail just isn't fully up to scratch
- 2:06yet. The best part about a bot is that
- 2:08it doesn't flinch, it doesn't get
- 2:09scared, it can execute without emotions
- 2:12and that's what actually catches most
- 2:13traders out. So if your problem was ever
- 2:15execution as it is for most people, then
- 2:17building a trading bot should really
- 2:18help you. And the loop of a trading bot
- 2:20is actually quite simple. You set up the
- 2:22parameters, it executes based on those
- 2:24parameters, it learns from those
- 2:25parameters and then it goes again. And
- 2:27this loop can automate around the clock
- 2:2924/7 even while you're sleeping. And
- 2:31some of my bots where I've made over
- 2:33$8,000 in a week, these have actually
- 2:35executed some of my best trades when I
- 2:37wasn't awake. Especially if you're not
- 2:39available all day or not on US hours, I
- 2:41think that's one of the biggest value
- 2:42props of automating your trading. But I
- 2:45want to make it clear this isn't a magic
- 2:46fix. I do think this stuff is getting
- 2:48better and better and being at the
- 2:50cutting edge of it like I'm trying to is
- 2:51a big advantage, but this isn't a full
- 2:54replacement for discretionary trading. I
- 2:56view trading bots as a great attachment.
- 2:58So you can have discretionary ideas,
- 3:00ideas that you think will help you get
- 3:02an edge in the market and then you use a
- 3:04trading bot for the execution piece.
- 3:06That's pretty much how I use them in my
- 3:08day-to-day life. And then over time, you
- 3:10can start to knowledge compress. So take
- 3:12strategies from yourself and from others
- 3:15that you want to implement and train the
- 3:16AI to do so automatically. So before we
- 3:19get into how to build a winning trading
- 3:20bot, let's firstly discuss why most
- 3:23trading bots lose. They're usually four
- 3:25reasons why trading bots lose money. The
- 3:27first one is they don't have memory. So
- 3:29basically it'll open a trade or it'll
- 3:31execute something based on its preset
- 3:33parameters, but then it doesn't learn,
- 3:35improve, and iterate over time. I'll be
- 3:37showing you a memory system in today's
- 3:38video which pretty much makes that
- 3:40mistake irrelevant. Secondly, people set
- 3:42up trading bots with no goals or no
- 3:44objectives. So they'll set a test, but
- 3:46they won't define the parameters for
- 3:48that test. So then you're basically
- 3:49trading blindly. The bot isn't getting
- 3:52smarter, the bot isn't necessarily
- 3:54optimizing, it's just running on its own
- 3:56accord. So, without a goal and an
- 3:58objective and without actually
- 4:00implementing that data, it's basically
- 4:02just winging it. The third reason bots
- 4:03fail is because they don't take into
- 4:06account future conditions. Bots are
- 4:07trained on past data. So, you need a
- 4:10good system to forecast data and some of
- 4:13that is discretionary. Some of that
- 4:15can't be automated, but you can
- 4:16obviously build good market scraping
- 4:18systems to plug into the bot to give it
- 4:20more informed information. Human traders
- 4:23can be very good because they adapt to
- 4:24the market very quickly and humans have
- 4:26like this creativity element that bots
- 4:28don't have. We can actually forecast
- 4:30data. Whereas AI models in general,
- 4:32they're all trained on past data. So,
- 4:35you actually need to manufacture things
- 4:36and you can use that to your advantage,
- 4:38but you have to set things up properly
- 4:40so the AI can actually execute based on
- 4:43future expectations. And fourthly, the
- 4:45reason why a lot of trading bots fail is
- 4:46because a lot of the pre-packaged bots
- 4:48simply too many people are using. So,
- 4:50they actually lose their edge in the
- 4:51market. So, if you just go out and buy a
- 4:53popular bot that hasn't been backtested,
- 4:55that doesn't have an edge, you're
- 4:57probably going to be competing against
- 4:58other traders running the same strategy.
- 5:00So, it's important to work out your own
- 5:02strategy or use a bot that millions of
- 5:04people aren't using. In my opinion, to
- 5:06summarize what makes a good bot, it
- 5:08remembers, it gets smarter over time and
- 5:11it's actually yours. So, it's
- 5:12configurable based on your beliefs and
- 5:15based on the data that it accrues. So,
- 5:17now you know why most trading bots fail
- 5:19and you know what constitutes a good
- 5:21trading bot in my opinion. Now, let's
- 5:23move on to your options. What is
- 5:24currently available in the market right
- 5:26now for you to use? Now, there are a few
- 5:29and they all make sense for different
- 5:30people and different skill levels. So,
- 5:32let's run through them. Firstly, you can
- 5:33buy a ready-made AI bot. These are maybe
- 5:36some of the bots you've seen advertised
- 5:38on some platforms or built into an
- 5:39exchange with pre-configured parameters.
- 5:42These aren't necessarily bad. In fact,
- 5:44they don't require any effort, so that
- 5:45is a good thing from a setup and time
- 5:47perspective, but ultimately you don't
- 5:48have your own edge because it's a black
- 5:50box. You don't know exactly how they're
- 5:52trained, and even if their algorithm is
- 5:53public, you have no ability to influence
- 5:56that algorithm. So, you're at the behest
- 5:58of the platform that you are using. Good
- 6:00option for people just trying to dip
- 6:01their toes in the water and maybe use a
- 6:03trading bot on an exchange, but maybe
- 6:05not so good for people that want proper
- 6:07customization, which I do believe is
- 6:10very important because the way that you
- 6:11run your portfolio or your trading is
- 6:13going to be different from how I run my
- 6:15portfolio or my trading. So, we need our
- 6:17bots to reflect the very unique
- 6:19differences in both of our goals, and
- 6:21the only way to do that is through
- 6:22customization, which brings me on to
- 6:24point two. You can use a no-code
- 6:26platform. So, this is a platform that
- 6:28gives you some customization, but isn't
- 6:30a full black box. So, you've got
- 6:32Composer for stocks. You've even got
- 6:34Robinhood now who launched their agents.
- 6:36You don't have full control, and they
- 6:37don't make it open source for you to
- 6:39necessarily connect an API and do things
- 6:41yourself on their exchange. Maybe
- 6:43they'll add it in the future, but for
- 6:44now, you're limited to the options that
- 6:46they're giving you. These are definitely
- 6:47better than the previous option, but I
- 6:50do feel like you're going to hit your
- 6:51ceiling fast, and it's going to limit
- 6:53your ability to progress over time. But,
- 6:56I'm definitely still experimenting with
- 6:57some of these, and I think for some
- 6:58traders it makes sense. Like, setting up
- 7:00a grid bot, setting up DCA bots, setting
- 7:03up basic portfolio management based on
- 7:05preset parameters. It makes sense for
- 7:07some people, but for people that want a
- 7:09fully autonomous strategy, you're going
- 7:10to cap out with these types of systems.
- 7:12And thirdly, this is something that
- 7:14previously used to take months to do,
- 7:16but now you can do relatively quickly,
- 7:17as I'm about to show you, you can build
- 7:19your own trading bot where you actually
- 7:21own the memory system, own the data, and
- 7:24own the configurability. It's actually
- 7:26pretty wild to think that you can now
- 7:27have like an AI quant in your pocket,
- 7:29essentially, that can trade on your
- 7:31behalf 24/7. When, you know, previously
- 7:33this stuff was only reserved for the
- 7:35elite, and that's what these new
- 7:37frontier models like Claude and GPT have
- 7:40now unlocked. And many exchanges and
- 7:42brokerages have actually embraced this
- 7:45cuz they understand users are using
- 7:46these products. So, we're actually going
- 7:48to create MCPs, which are the bridges
- 7:50between Claude and the exchange to
- 7:53enable you to automate your trading. And
- 7:55this has only really happened in the
- 7:57last couple of months. Like I've been
- 7:58using trading bots for 3 years, but it
- 8:00was only really this year that you could
- 8:02fully customize a bot. So, you're
- 8:04actually really early to this. If you're
- 8:05watching the video right now, make sure
- 8:07you subscribe to the channel cuz I'm
- 8:08going to keep updating you as things
- 8:10evolve because I think in the next
- 8:11couple of years things are just going to
- 8:13get better and better and better. So,
- 8:14I'm pouring a lot of time and resources
- 8:17into making sure I can get an edge with
- 8:18this kind of stuff. And I want you guys
- 8:20to come on this journey with me as well
- 8:22because I have a clear thesis that this
- 8:23is where the world is heading. I think
- 8:25in the future we're heading towards a
- 8:27world where people don't just go into
- 8:28the computer or grab their phone and
- 8:30place a trade manually. I think people
- 8:32will be voice prompting agents. I think
- 8:34agents will be managing portfolios on
- 8:35their behalf. And I think the way you
- 8:37interact with exchanges and trading will
- 8:39be very, very different. want to be at
- 8:40the forefront of that. So, now I'm going
- 8:42to give you the three-step approach to
- 8:44actually build your own trading bot. And
- 8:46if somehow you get lost at any point,
- 8:47don't worry. In the description below
- 8:49for free, I'm going to have the full
- 8:51framework from today's video that you
- 8:53can actually just take and paste into an
- 8:55LLM like Claude or ChatGPT, and it will
- 8:58actually help you execute on your
- 9:00behalf. So, all you need to do is go
- 9:02down below, enter your email, become a
- 9:04part of the newsletter, and then you
- 9:06will unlock the WhatsApp community where
- 9:08in the pinned link you will be able to
- 9:10find the prompt from today's video. All
- 9:12right, so let's get into the three
- 9:13steps. So, step one, picking your venue.
- 9:16Firstly, you want to determine what
- 9:18you're trying to trade. Is it stocks or
- 9:19is it crypto? And crypto now obviously
- 9:21has access to tokenized stocks and gold
- 9:24and these sorts of things as well, even
- 9:26perps trading. So, a lot of people that
- 9:28are trading stocks are now doing it
- 9:29through hyperliquid or through X
- 9:32tokenized stocks, but obviously that
- 9:33comes with its own trade-off. So, first
- 9:35and foremost, you want to pick which
- 9:37lane you're most interested in. So,
- 9:38here's the broader architecture for a
- 9:40trading bot, no matter if it's stocks or
- 9:42crypto. The brain is going to be your
- 9:44LLM. So, in this case, Claude. You can
- 9:46also use GPT. So, you're either using
- 9:48Claude code on the newest model, or
- 9:50you're using GPT's CodeX on the newest
- 9:52model. That brain is responsible for
- 9:54holding and executing your strategy. The
- 9:57hands, what actually delivers the
- 9:59information to the exchange that's
- 10:00executing the trades, or you can think
- 10:02of it as a bridge, is the MCP server.
- 10:05That's the piece that actually enables
- 10:07Claude to place real orders on an
- 10:09exchange or a brokerage. And not every
- 10:12single brokerage has a connection, but
- 10:14there are a couple really good ones that
- 10:15I'll tell you today. For stocks, I
- 10:17personally use Alpaca, because they have
- 10:20an MCP server, which makes this easy.
- 10:22And this video's not sponsored by
- 10:23anyone, by the way. These are just the
- 10:24best solutions that I've personally
- 10:25found. It's free, it has paper trading,
- 10:28which is amazing, because you want to
- 10:29test this stuff out if you're learning
- 10:31on fake money. You don't want to go and,
- 10:32you know, blow real money and mess up a
- 10:34configuration. The best way to actually
- 10:35get started with trading bots is to do
- 10:37paper trading. Once you're comfortable,
- 10:39and once your strategy's working, then
- 10:41you move on to a bit of real money, and
- 10:43then you keep leveling up. But
- 10:44essentially, you sign up for an Alpaca
- 10:46account, you grab your API keys, you
- 10:48give Claude the API, and then it uses
- 10:50their inbuilt MCP. It might sound
- 10:51complex, but honestly, it's easier than
- 10:53it sounds. The prompt that I'll give you
- 10:54will make this super easy, and Claude
- 10:56will just guide you through the whole
- 10:57process. And that's the benefit of using
- 11:00a platform that has an inbuilt MCP, so
- 11:02you don't have to build your own. You're
- 11:03not actually coding a connection, you're
- 11:05just plugging it in. This gives Claude
- 11:06the capability to pull live prices from
- 11:09the exchange and execute trades based on
- 11:11your strategy. For crypto, it's the
- 11:13exact same concept. You want to go
- 11:15straight to a crypto exchange. There are
- 11:17so many. Binance, Blofin, Bybit, Pionex.
- 11:21Pionex and a lot of other exchanges now,
- 11:22for example, have an inbuilt MCP that
- 11:25you can use, just like Alpaca, so you
- 11:27can connect the MCP to Claude. If you go
- 11:30into to websites, they're usually
- 11:31available. If not, you can just ask
- 11:33Claude to help you connect the
- 11:35exchanges. Then you need to go into the
- 11:37exchange, take the API key, put it into
- 11:39Claude, and usually after 10 to 15
- 11:42minutes, you'll be able to connect the
- 11:44two, even if the exchange doesn't have
- 11:46an inbuilt solution, which does make
- 11:47things quicker and more secure, but you
- 11:49can still use an exchange without an MCP
- 11:52if you work around it on Claude code.
- 11:54You can also use GPT for this. I think
- 11:56both are good. There's arguments that
- 11:58GPT is smarter or more reliable for
- 12:00coding now. So, I personally use a
- 12:01mixture of both, but I found Claude to
- 12:03be pretty good as long as you give it
- 12:04the right parameters, which we'll also
- 12:06discuss, cuz that's obviously the secret
- 12:07to creating a really good trading bot.
- 12:09One thing on safety, you want to make
- 12:11sure your funds, especially if you're
- 12:13connecting it through an MCP using an
- 12:15API, in case your keys are exposed, in
- 12:17case you lose your device or something,
- 12:19that you actually create a sub account
- 12:20that only has a certain amount of funds
- 12:23that you're willing to give the bot
- 12:24access to. And a lot of exchanges
- 12:26actually have paper trading just like
- 12:27Alpaca, so you can actually just paper
- 12:30trade and test out your strategies, make
- 12:31sure they work, harden security over
- 12:33time before you move on to real capital.
- 12:36I think humans just learn the best by
- 12:37doing. So, if you're able to set this up
- 12:39yourself with paper trading, that's
- 12:41ultimately going to be the best tuition,
- 12:43and I think it's definitely worth the
- 12:44time. Step two, you want to actually
- 12:46pick your strategy and define the
- 12:48feedback loop. So, before any prompt,
- 12:51like open this trade for me, open trade
- 12:53under these parameters, you need to
- 12:55actually define the strategy. Because
- 12:57remember, the bot is only as good as the
- 13:00parameters that it runs under. Now, this
- 13:01is a rabbit hole in itself, and I'm
- 13:02going to do future videos on back
- 13:04testing strategies, the best strategies.
- 13:06This is an entire concept for another
- 13:08time, but in the beginning, you want to
- 13:10start with a pretty simple strategy just
- 13:13to get used to the mechanics of running
- 13:15a trading bot. The best part is that you
- 13:17can actually just back test strategies
- 13:19now, especially now that Claude and
- 13:21TradingView actually have an MCP
- 13:23connection. You no longer have to do it
- 13:25manually on Pine Script. You can just
- 13:27connect Claude to TradingView. I did a
- 13:28video on it, go and watch it that
- 13:30actually shows you how to set this up
- 13:32and then you can just start back testing
- 13:33any strategy. Hey, what if the RSI hit
- 13:36this level and momentum did this? Hey,
- 13:38what if price spikes X% in a day, what
- 13:40happened if you opened a trade every
- 13:41time over the past 3 months? It'll tell
- 13:43you how much you would have made. So,
- 13:45I'd recommend back testing first, taking
- 13:47a strategy which looks to be reliable
- 13:49and then using that strategy to start
- 13:52your trading bot experiment. And of
- 13:54course, you can just go back and forth
- 13:55with the AI about your trading style,
- 13:58your investment philosophy, what
- 13:59strategy you want to follow. Like I
- 14:01recommend before people even set up a
- 14:03trading bot, they do a bit of a back and
- 14:05forth to create a one-page document that
- 14:07they put in the instructions folder of
- 14:10GPT or Claude so the AI actually knows
- 14:13about you, your financial situation, and
- 14:16your goals. I think it's also okay to
- 14:17run a completely separate AI test, but
- 14:20if in the future you do want to make
- 14:22these strategies as I guess we're all
- 14:23aspiring to do, work within the broader
- 14:26context of your goals and your
- 14:27portfolio, then obviously you're going
- 14:28to need to create the documentation for
- 14:30that so the AI can tweak the strategy
- 14:32based on that. For this video, I'll show
- 14:33you a very simple build that I'm using.
- 14:35It's essentially a moving average
- 14:37crossover. So, if we see a fast average
- 14:38crossing above the slower average, that
- 14:41indicates that momentum is increasing.
- 14:44That is our signal to buy. If it crosses
- 14:45back below, we're going to sell.
- 14:48Obviously, over time, you want to create
- 14:50parameters across what time frames,
- 14:52adding in other conditions, and the AI
- 14:54will learn over time, but I'm just
- 14:55showing this to you as an example. This
- 14:57is simple on purpose because this
- 14:59video's about the system. In future
- 15:01videos, make sure you subscribe, we'll
- 15:02dive deeper into the best strategies,
- 15:05but I want to make sure you have a full
- 15:07understanding today of what trading bots
- 15:08are. Of course, we'll just swap in a
- 15:09better strategy later. So, now that you
- 15:11have the idea, you can prompt Claude or
- 15:13GPT to build it. It'll define every
- 15:15interval. The bot will read its memory
- 15:17and check the market through the MCP,
- 15:19and it will apply your rule to open
- 15:21trades, and obviously place paper trades
- 15:24in this example if it fires. So, a bot
- 15:26essentially has three jobs. It sees the
- 15:27market, but it decides whether it wants
- 15:29to execute, and then of course, if the
- 15:31parameters hit, it executes. You can see
- 15:33with this bot, it actually fired on the
- 15:35signal, but the trade loses.
- 15:38And then the same signal shows up again,
- 15:39and then it did the same trade again,
- 15:41but it loses again.
- 15:42This is because, and this is a common
- 15:44issue with bots, it has no memory. So,
- 15:47it never kept score of what's working,
- 15:48or critically reflected on why it's not
- 15:51working. So, this right here is an
- 15:52example of a bot that doesn't remember
- 15:54its own trades. So, it keeps repeating
- 15:55the same mistake. Every single time that
- 15:57parameter hits, it'll just execute
- 15:59because you've told it to execute. What
- 16:00I'll show you now, step three, is going
- 16:03to give your bot real memory, so it
- 16:05self-improves over time. This is the
- 16:07step that really matters, and we create
- 16:09this through a two-file system. File one
- 16:11is going to be your ledger. It's going
- 16:13to log every single trade. It's going to
- 16:15show you what happened, when it
- 16:16happened, why it fired, and how it
- 16:18ended. And you'll actually be able to
- 16:20prompt and reflect on this data. The
- 16:21second file is going to be the learnings
- 16:23file. So, when a trade closes, the bot
- 16:26writes itself one plain English lesson.
- 16:28So, it lost on this setup, don't take it
- 16:30again without confirmation of XYZ. This
- 16:33really matters because every single time
- 16:34it trades, it's going to read the ledger
- 16:36and the learnings file, and then if it
- 16:38makes a mistake again, it's going to add
- 16:40to it. So, this is essentially giving
- 16:42the bot a brain that learns over time,
- 16:44just like a human does. So, if you're a
- 16:46trader, you'll know you get these
- 16:47intuitions, like, "Oh, I think the
- 16:48market's going to crash. I think the
- 16:50market's probably going to go up." You
- 16:51might not be aware of it, but that's
- 16:52your mental algorithm based on past data
- 16:54that you've analyzed coming into
- 16:56account. You we're just engineering the
- 16:58exact same thing for the AI, but the
- 17:00best thing is, the AI will never make a
- 17:01mistake. Once you train it and set hard
- 17:03rules, it'll stick to those rules. Now,
- 17:05obviously, I've got to make it clear,
- 17:06sometimes AIs do hallucinate. Sometimes
- 17:09it'll break its rules, because these
- 17:10things aren't perfect, but having an
- 17:12understanding of how to set this up now
- 17:14is extremely beneficial, because in the
- 17:16future months and future years, these
- 17:18things will get near perfect. We know
- 17:20we're heading towards a world where AIs
- 17:22are smarter than us, more accurate than
- 17:23us, even though they might make some
- 17:24mistakes now. I mean, just look at how
- 17:26far they've come since I started using
- 17:28trading bots a few years ago. Like, they
- 17:29are already so much better and they'll
- 17:31keep getting better. So, if there are
- 17:32issues, just persist. It can be
- 17:34frustrating, but that's actually how you
- 17:36learn and create better bots over time.
- 17:38Now, for the more advanced people, two
- 17:40files is okay to start. That is a
- 17:41workable memory system, but you may want
- 17:44to consider building a cloud memory
- 17:46system on something like Superbase or
- 17:49Supermemory or Firebase where your
- 17:51memory is actually stored on the cloud.
- 17:54So, it's the exact same idea, but it's
- 17:55actually a database instead of just
- 17:57files, so it can hold thousands of
- 17:59trades and a much bigger ledger that
- 18:02will be less intensive for the bot to
- 18:05review. Especially if you're a
- 18:07high-frequency trader, you're probably
- 18:08going to need to upgrade from the true
- 18:10file system after a few weeks of trading
- 18:12cuz you'll have so much data and it will
- 18:14actually slow your AI down. So, this
- 18:16time I'm doing a test where I gave the
- 18:18bot some memory. I set up this system
- 18:20and if you actually run it again, the
- 18:22losing signal shows up, but this time
- 18:25the AI actually checks its own record.
- 18:28It sees it already lost on a similar
- 18:29setup to this, so it decides to skip it.
- 18:31This is the key. It's not just being
- 18:33cautious, it still takes good setups,
- 18:36but it skips the one that it loses from
- 18:38in the past. So, if you look at the two
- 18:39side by side, the bot with no memory
- 18:41just keeps bleeding on the same trade,
- 18:43but the one that remembers stops the
- 18:45bleeding and keeps the winning trades.
- 18:47Now, imagine this iterating over
- 18:49thousands of trades, it just gets
- 18:51smarter over time. So, that's the same
- 18:53strategy, but memory is the key
- 18:55differentiator there. But now, let's
- 18:56talk about the honest reality. Before
- 18:59you run a bot with real money, before
- 19:00you just copy a random strategy, make
- 19:03sure that you test something with paper
- 19:04money first. I'm going to give you some
- 19:06homework. Go away, take the prompt from
- 19:08today's video available in the
- 19:09description below, build your own
- 19:10trading bot whether it's for crypto or
- 19:12stocks, and paper trade for a week, and
- 19:15learn to refine your memory system. Once
- 19:18you're confident, then start with a
- 19:19little bit of money, maybe 1, 2, 3% of
- 19:22your max risk tolerance, and then scale
- 19:24up over time. The majority of your
- 19:26losses are going to come in the early
- 19:28days as you're still figuring things out
- 19:30and as the bot is figuring things out,
- 19:32and things only become reliable as
- 19:34things develop over time. I'm going to
- 19:36be backtesting a lot of strategies on
- 19:38this channel. If you would like to
- 19:39subscribe, because I'm also in the
- 19:41process of trying to work out what the
- 19:42best strategy is. I found some which are
- 19:44amazing and have been highly profitable,
- 19:46but I think we can always get better by
- 19:47testing more data, and that's what I
- 19:49want to do here on the channel. The goal
- 19:50of today's video was to help you
- 19:52understand what a trading bot is and how
- 19:54to actually set one up the right way,
- 19:56and then in future videos, we'll go in
- 19:58depth on very specific builds and
- 20:00strategies, and do lots of live tests
- 20:02because I'm just still experimenting all
- 20:04the time. I'm even doing a test right
- 20:05now where I've put Claude and GPT and
- 20:07other models up against each other to
- 20:09see which one is the best. So, that is
- 20:11how to build a real trading bot. I'll
- 20:13leave the prompt available below. It's
- 20:15in the WhatsApp community on the pinned
- 20:17link. And of course, if you want to keep
- 20:18leveling up your own trading and
- 20:20investing, subscribe to the channel as
- 20:22I'll be bringing you the AI strategies
- 20:24that can help you stay at the forefront
- 20:26and [music] the edge of the market. I'll
- 20:28see you in the next video. Have a lovely
- 20:30rest of your day. Peace out.
About this transcript
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