The video discusses the usage of Chat AI, which is a program designed to answer any question, including those on trading strategies. It can help build a trading strategy complete with risk management and connect it to bots for automated trading. The video shows an example of building a simple trading indicator and also discusses the issues of using Pine script 4 vs. 5. Overall, Chat AI is an effective tool for generating trading strategies with high win rates.

Using Chat AI to Build Trading Strategies with Risk Management: A Step by Step Guide

Introduction: What is Chat AI?

Chat AI, also known as Chat GPT, is the latest program built by OpenAI that has taken the internet by storm. This program allows users to chat and ask any questions, ranging from dating advice to trading strategies, and get answers in real-time. It even has the capability to script codes and assist in building videos. In this article, we will explore how this program can be used to build better trading strategies with risk management.

Step 1: Setting up Chat AI

To set up your own Chat AI account, simply visit chat.openai.com and create a new account. Once you are logged in, you can begin chatting with the program and asking questions.

Step 2: Building a Trading Indicator

To build a trading indicator, we will be using the Pine Script Editor on TradingView. First, open a new chart on TradingView and click on “Open” followed by “Strategy.” Then, type in your question to Chat AI, such as “Can you build me a simple EMA pullback trading strategy in PineScript?” The program will generate an explanation and instructions on how to build the trading strategy.

Step 3: Copy and Paste the Code

Once you have the code generated by Chat AI, copy and paste it into the Pine Script editor on TradingView. However, be aware that Chat AI can only generate code in Pine Script 4, while Pine Script 5 has been out since last year. It may require some upgrading of the code to fit the newer version.

Step 4: Adjust Settings and Test Strategy

Once you have entered the code, you can adjust the settings for the trading indicator and test it on TradingView. You can adjust the length, the percentage above EMA for stop loss or exit, and other parameters according to your preferences. Then, conduct backtesting to see the performance of the trading strategy.

Step 5: Building a More Complex Strategy

If you want to build a more complex trading strategy, you can take an existing strategy that you like and use Chat AI to modify it. For example, you can use a mean reversal or reversion strategy and ask Chat AI to modify it and add risk management features, such as stop loss and take profit.

Conclusion: The Potential of Chat AI in Trading

While Chat AI is still a new program, it has shown great potential in helping traders build better trading strategies with risk management features. Its ability to generate code and provide real-time support can be a great asset for traders, especially for those who are new to trading or programming. By utilizing Chat AI, traders can save time and effort while improving their trading strategies.