Top Tips To Create An AI Trading Bot From Siraj Raval

Have you ever considered building your own AI trading bot, but assumed you need complex programming knowledge? What if you could design a AI trading bot without any coding knowledge, using artificial intelligence and real-time data? In this article, we explore a YouTube tutorial by well-known influencer Siraj Raval, who outlines the process of developing an AI trading bot using ChatGPT, Bing, and Composer. Presenting four unique trading strategies, this tutorial breaks down the complexity of coding and equips you with essential tips to harness AI for customized trading pursuits.

Here are some of the top tips from the video to keep in mind when creating your own AI trading bot.

1. Use Bing for Creativity and Real-Time Data: While ChatGPT is trained until September 2021, Bing AI enables you to collect recent information from websites to hone your strategy. In the video, Siraj uses a news article about the current economy and asks Bing to develop a profitable strategy based on this and other articles it can find online. Bing generates a 'Recession Proof with Gold and Crypto' strategy, which Siraj pastes back into Composer for further analysis.

2. Provide Context: When asking ChatGPT to create a new strategy, provide as much context as possible. This could include information about the current state of the global economy, recent events, market trends, etc. The more detailed the prompt, the more likely you are to get the strategy you are looking for. This also highlights the importance of the initial ‘Copy ChatGPT prompt’ which holds information on how the Composer language works.

3. You Don’t Need To Code: Composer is a visual programming language built on top of the Alpaca API, which allows you to build trading strategies without writing any Python code. It uses graphical drag-and-drop blocks, making it more accessible for non-programmers.

4. Leverage Existing Community Strategies: On Composer, you can view and edit strategies that the community has created. You can use these as a starting point for your own strategies. The ‘Copy ChatGPT prompt’ in these existing strategies also holds documentation on the Composer language to ensure that ChatGPT or Bing has sufficient context on how Composer language works.

5. Use ChatGPT for Understanding and Improving Strategies: ChatGPT can be used to understand existing strategies by feeding it the Composer code and asking it to explain the strategy in plain English (using the ‘Copy ChatGPT prompt’ feature). Additionally, you can ask ChatGPT to make existing strategies more profitable.

6. Handle Errors: If you encounter syntax errors when pasting the code generated by ChatGPT into Composer, ask ChatGPT to rewrite the code to fix the error. Providing more context about how the Composer language works can help with this.

7. Backtest Strategies To Prevent Overfitting: After creating a strategy, backtest it on Composer to see how it performs. Keep in mind that a strategy might not perform well in the backtest if it is designed for current market conditions that are significantly different from past conditions.

In conclusion, building an AI trading bot might sound like a daunting task, especially for non-coders, but Siraj Raval's video tutorial simplifies this process with the help of ChatGPT, Bing, and Composer. The use of Bing for real-time data and creativity, and ChatGPT for understanding and improving trading strategies, combined with the code-free environment of Composer, makes it a feasible project for anyone interested in finance and AI.

Check out the following article for a quickstart on how to use ChatGPT to create an AI trading bot. If you’re looking for an overview of the best stock trading bots on the market, check out this article: Best stock trading bots.