ChatGPT for Creating Trading Systems: Does it Work? Testing and Comparison with Dedicated Software

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Can we use artificial intelligence to code our trading systems even if we know nothing about programming?

Find out in this video! We put ChatGPT, the famous artificial intelligence-based OpenAI chatbot, to the test to see if it can write trading systems that work.

Not only that, but to better assess its potential, we compared it to our proprietary software Composer, a tool we developed specifically for writing trading systems without programming knowledge.

Are you curious how it went?

Then don't miss this video!

By watching it, you will discover:
-ChatGPT's real capabilities when it comes to writing trading systems
-The potential and functionality of the Composer software

Enjoy watching! 😉

Transcription

Introduction

Hey, everyone, and welcome back to this brand new video.

Just a couple of questions: does coding a trading system require computer skills or even being an experienced programmer?

Is there special software that does this for us?

And finally, can Chat GPT program trading systems independently?

One of the coaches at Unger Academy here, and today we’re going to be answering these questions by comparing "Composer," Unger Academy's proprietary software, with what is currently probably the most famous and trendy artificial intelligence platform of the moment. I am of course talking about Chat GPT.

I want to talk about it because it’s important to understand the potential and limitations of these two solutions so that we can properly calibrate our expectations.

ChatGPT, a multi-purpose tool

Ok, so, to begin, I must say that Chat GPT is a versatile tool.

Here you can see it at work after I asked for a tuna sushi recipe!

Thus, it wasn’t specifically developed to code trading systems.

Nevertheless, artificial intelligence seems to be ready to solve even complex problems and even to create effective trading systems.

Now, this purported ability is obviously attracting a lot of attention from those looking for valuable help in writing code for a trading system.

So let's just stop talking and go and test it right away by comparing it to the Composer software.

Composer was developed from the experience of the Unger Academy, and specifically for automated writing of trading systems.

So, the comparison may be a little bit unequal.

To restore the balance, we’ll test it with a very simple trading system that any system generation software should be able to write correctly.

How to create a script using Unger Academy's Composer software

This is what Composer looks like. Here we are in the Entry mask, where we need to set the start and end of the session, in this case 5 pm and 4 pm.

Here we’ll need to set entry levels and order types.

We’ll set the high and low of the last session.

The start and end times for the market entry operation.

And the maximum number of operations allowed per day.

Here in the Exit mask, where we need to set the maximum duration of operations.

We have left five days maximum duration of trades, as well as a Stop loss of $1,500 and a Take profit of $5,000.

Once we have all these inputs, we just go and simply click on this button and a warning informs us that our code is ready and can be copied to MultiCharts.

We’ll then paste it into the Power Language Editor of MultiCharts. I've already done that. And we see that the code compiles perfectly.

Then you can upload the code into a chart. So here’s a chart of the SP 500 with a 15-minute time frame and data from 2010.

Also, I'd say that the metrics that we see are quite remarkable. We have a $150,000+ in profit, a sharply rising equity curve with some regularity, and an Average trade of over $160.

So, we saw how, with no basic programming skills and no knowledge of the MultiCharts programming language, we could generate perfectly compilable code in just a few clicks that could then later be used and possibly refined to create an automated trading strategy.

ChatGPT tries to do the same but fails

Let us now turn to Chat GPT, where we gave this kind of instruction.

I asked Chat GPT to generate a trading system in Easy Language with a 15-minute time frame that would enter on lows and highs of the previous session.

I also told it to enter a Stop loss of $1,500, and a Take profit of $5,000 and exit after five sessions each time.

Entry orders could only be entered from 10 pm until 1 am.

Firstly, I've just got to say that in all the tests that were done, Chat GPT always appeared very confident.

It never asked any questions or questioned anything about the request, so it always seemed to have a good understanding of what is being asked to do.

We see it in the comments here as well. It’s always very confident.

Chat GPT also gives us a hint at the end of the code about how it was created and so in short it has no doubt about the code generated.

I copied this code provided by Chat GPT and pasted it into our MultiCharts Power Language Editor and tried to compile it but found some errors.

This blocks us because if we find errors when we compile the code, we obviously can’t use it to load it into our charts and create our strategy, and so we can’t move forward.

Now we aren’t going to get into the errors the compiler found, but there are a couple of things that stand out to us even if we aren’t programmers.

We see how he understood the time from 10 am to 1 pm, contrary to what we told it.

The compiler, as I said, finds syntax errors, and so those who do not know about the programming language would have difficulty correcting them.

In addition, there are also some macroscopic errors, such as exit orders that are inside the time window, which of course we didn’t want, since this operating window should only be used for entries.

The exits, especially the stop loss, must always be valid regardless of the time of trading.

The question is, what went wrong? It could be a single word, several lines of code, or even the entire system logic.

But to find out, you’d really have to know the programming language.

And that kind of contradicts the original idea. Because, we wanted to be able to write a trading system that could be tested without having to learn a programming language.

Now, to be nitpicky, we could say that we had asked Chat GPT for an Easy Language code, which is the language used by TradeStation, not MultiCharts.

So, I put that code into TradeStation to see if the code could at least compile here.

However, when we check it, we find errors again. Now we don’t go into the syntax of the code here either, but the problem certainly blocks in every direction we go.

Creating trading systems without being able to program thanks to the Composer

Going back to the Composer software that we saw earlier, we can see that we have so many ways to create our own codes.

Here we see the list of all the possible inputs that we can set.

We can also set the operational time window with a pause in it.

We can choose many filters for entries, as well as different types of temporal and monetary exit.

All these inputs then generate, with a simple click, the already compiled code that can be used for our trading systems.

Final thoughts on the comparison between Composer and ChatGPT

Alright, so guys, so the example we saw together today gave us two important pieces of information.

First, we saw how ill-suited Chat GPT is for creating trading systems. In fact, it got stuck on the task with a very simple system, and couldn’t deliver a correct script.

On the other hand, we learned about Composer, which was developed for this purpose and allowed us to create an initial profitable system with a few clicks and without any programming skill, which we could then optimize and further improve.

If there is anyone among you who is interested in the world of systematic trading, I recommend that you go and click on the link in the description of this video.

From there you can watch a video by Andrea Unger, get our best-selling book by just covering the shipping costs, or even book a free call with a member of our team.

And if you liked the video, please be sure to leave a Like, subscribe to our channel and click on the notification bell to stay updated on the release of all our new videos.

Thanks for watching and I will see you soon next time! Bye-bye!

Need More Help? Book Your FREE Strategy Session With Our Team Today!

We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.

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Andrea Unger

Andrea Unger

Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.

I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. 

In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.

Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.

Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.