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Transforming Trading Indicators with AI
Feb 3, 2025
Converting Indicators into Strategies Using AI
Introduction
Importance of converting indicators into strategies for better trading results.
Previous content discussed top indicators; this video focuses on the conversion process.
Michael aims to help viewers understand how to create strategies from indicators using AI.
Objective
Show how to convert indicators into strategies using Open AI (specifically ChatGPT).
Emphasis on the method's effectiveness and potential success for users.
Key Points
Choice of AI:
Use ChatGPT 01 Preview for best results.
Common Issues:
Some common problems may arise, but they can be solved in real-time during the tutorial.
Indicators to Convert
Bull Market Support Band
Indicator overview: Buy signals on upward crosses and sell signals on downward crosses.
Steps for conversion:
Add the indicator to the chart.
Copy the indicator's source code.
Use a predefined prompt in ChatGPT to convert it into a strategy.
Results:
Initial returns: 383% profit (compared to original 736%).
Adjustments made to improve results.
Bollinger Bands
Indicator overview: Buy when the price is above the upper band; sell when it breaches the lower band.
Steps for conversion:
Add the indicator to the chart.
Copy the source code, then use the prompt in ChatGPT.
Results:
Adjustments required to specify buy/sell conditions.
Final results showed significant profits after adjustments (1,187% profit).
Super Trend
Indicator overview: Buy on green signals, sell on red signals.
Steps for conversion:
Add indicator to the chart.
Copy source code and use in ChatGPT.
Results:
Initial conversion had errors; corrected buy/sell signal logic.
Final results matched original strategy profits.
Lessons Learned
Effective use of AI can simplify the strategy creation process.
Importance of clearly defining buy/sell conditions for indicators.
Flexibility in adjustments post-initial conversion is crucial for accuracy.
Conclusion
The process of converting indicators into strategies is simplified using AI.
Encouragement for viewers to try creating strategies independently.
Mention of future content on combining multiple indicators into a single strategy (conditional on likes).
Reference to Signum Dooney for automating trading strategies created.
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Full transcript