18 min read

DayTrading with ChatGPT

Since the first day I came across ChatGPT, I have been thinking about ways to utilize AI in relation to day trading. There are already lots of examples of YouTubers posting videos about day trading strategies created by ChatGPT. While there are some interesting videos on this topic, I still think most of what has been released in this area is subject to curve fitting, and not necessarily strategies that will continue to perform with equivalent results going forward.

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So are there other ways where ChatGPT can be helpful when it comes to day trading? I think there is a lot of potential in using ChatGPT as a trading coach/mentor. Not to advise on specific trading strategies, setups, or signals, but more to help you stay sane, to motivate, and to keep track of our trades and help analyze past -and possibly future performance.

At this point, this is no more than speculation, and because of that, I decided to give it a go. I have decided to share all the details here on tradeles.com.

So I have started a new small account on PrimeXBT. I then share as much information as I can with ChatGPT. All of our conversation will be shared here. The trading account was started on March 24th. 2023. Below is the the first part of our chat.

Hello. I would like you to be my day trading coach/mentor. I am very experienced in this space and aware of the risk involved. While I am experienced, I do need someone to keep me on track and I think you be can be useful dfor just that. My idea is to tell you details about all the trades I execute. You can keep track of the trades, PL, and all the details, and help me stick to my rules along the way. Whats your thoughts on this?

As an AI language model, I can certainly offer you assistance and guidance in day trading, but I want to emphasize that my advice should not be considered professional financial advice. I can help you by providing general trading strategies, discussing market analysis techniques, and reminding you of best practices. However, I cannot actively track your trades or portfolio in real time.
If you're still interested, you can share your trading rules and strategies with me, and I can offer insights or suggestions to help you stay disciplined in your trading. Additionally, I can provide you with information on market trends, trading psychology, and risk management.
Remember that trading stocks and other financial instruments carry inherent risks, and you should always consult with a professional financial advisor before making any decisions.

I am well aware of the risks. I am not seeking advices for actual trades. I want to think of you more as a coach / mentor that will help me keep track of my trades, and assist me general advices along the way

Understood! As an AI, I can provide you with general advice, guidance, and reminders to help you maintain discipline in your trading. While I can't actively track your trades in real time, I can certainly offer insights based on the information you provide me.

To better assist you, please share your trading rules, strategies, and any specific goals you have in mind. This way, I can tailor my guidance to your needs and help you stay focused on your objectives.

Right so: My starting balance is 0.01 BTC. Based on current market rate this equates roughly to 274 USD. I plan to risk around 1% of my equity per trade and target a profit of minimum 3%

Thank you for providing the details of your trading plan. It's essential to have a well-defined strategy and risk management in place. Based on the information you've given, here's a summary and some general advice:

  1. Starting balance: 0.01 BTC (approximately 274 USD)
  2. Risk per trade: 1% of equity
  3. Target profit: Minimum 3%

As your trading coach/mentor, here are some general tips and reminders to help you stay disciplined and focused on your trading journey:

  1. Maintain your risk management: Always adhere to your predefined risk per trade, which in this case is 1% of your equity. This will help you protect your account from significant losses.
  2. Set clear entry and exit points: Before entering a trade, establish well-defined entry and exit points based on your technical and/or fundamental analysis.
  3. Use stop-loss orders: Utilize stop-loss orders to minimize your losses in case the market moves against your position.
  4. Keep emotions in check: Trading can be emotionally taxing. Maintain a disciplined approach and avoid making impulsive decisions based on fear or greed.
  5. Continuously learn and adapt: The market is always evolving, so it's essential to stay informed about new trends and strategies. Learn from both your successful and unsuccessful trades, and adjust your approach accordingly.
  6. Track your progress: Keep a detailed record of your trades, including entry and exit points, the rationale behind each trade, and the outcomes. This will help you identify patterns in your trading and make improvements over time.
  7. Stay patient and persistent: Success in trading may not come overnight. It's crucial to remain patient, focused on your strategy, and committed to continuous improvement.

Remember, I'm here to help you with any questions or guidance you may need along the way. Don't hesitate to reach out if you require further assistance or insights.

Thank you. I just got home, a bit tipsy, so – probably best to go to bed, with not trades. Goodnight

It's wise to avoid trading when you're not in the right state of mind, as it can lead to impulsive decisions and poor risk management. Going to bed and getting some rest is a good choice. Remember, the markets will still be there tomorrow.

Goodnight, and feel free to reach out whenever you need assistance or guidance in your trading journey. Rest well!

Good morning

Good morning! I hope you had a good night's rest. If you have any questions or need assistance with your trading today, feel free to ask. I'm here to help you stay disciplined and focused on your trading goals. Have a great day!

I have just executed a trade. Here are the details. Its a long on BTCUSD. Position size is 0.006. My entry is 27,411.9. I have a stop loss set at 26,990. If my trade gets stopped out, that should equate to a loss of 1% (including commission).

Thank you for sharing the details of your trade. It's great to see that you're adhering to your risk management plan. Here's a summary of the trade:

  1. Trade direction: Long on BTCUSD
  2. Position size: 0.006 BTC
  3. Entry point: 27,411.9
  4. Stop-loss: 26,990

Your trade has been planned with a 1% risk in mind, including commission, which aligns with your initial strategy. As you monitor this trade, remember to stay disciplined and follow your trading rules.

If you have set a target profit of at least 3%, you may want to place a take-profit order around 28,234 (assuming an increase of 3% from your entry point). However, you can adjust this based on your analysis and market conditions.

If you have any questions or need further assistance during this trade, feel free to ask. Good luck!

Thank you for logging this. Note that a stop loss will be executed as a market order, and because of this, the price may not be exact.

You're absolutely right, and it's important to be aware of this aspect when using stop-loss orders. When a stop-loss order is triggered, it becomes a market order, which means that your position will be closed at the best available price in the market. In fast-moving or volatile markets, the actual execution price might be different from the stop-loss price you set, resulting in slippage.

Slippage can cause your realized loss to be slightly more or less than the intended 1% risk, but it's still a valuable risk management tool that helps protect your account from larger losses. Make sure to keep this in mind and monitor your trades accordingly.

If you have any other concerns or need assistance, feel free to ask. Good luck with your trading!

There are mostly two reasons for the trade entry. The prair is now trading at the value area low (VAL) of its current range. The second reason is that is seems to begin the shape of a symmetrical triangle, which makes me believe it will continue in this range for some time (maybe till sunday evenning?). While a lower entry maybe would be preferable (closer to the ascending trendline thats part of the symmetrical triangle), I am not sure price will get there for now. My stop is placed below VAL, the ascending trendline, and a low volume node – all three points that should act as support. Initial profit target of this is around 28,331 which is a local level of resistance as we have the value area high and a daily level of resistance.

It's great to see that you have a well-thought-out rationale behind your trade entry, based on technical analysis. Here's a summary of your reasoning:

  1. The pair is trading at the value area low (VAL) of its current range, which can act as a support level.
  2. The formation of a symmetrical triangle suggests that the price may continue to consolidate within the range for some time (possibly until Sunday evening).
  3. Your stop-loss is placed below VAL, the ascending trendline, and a low volume node, all of which should provide additional support.
  4. Your initial profit target is around 28,331, which coincides with the value area high and a daily level of resistance.

Your analysis appears to be comprehensive, taking into account both support and resistance levels, as well as chart patterns. Remember to stay disciplined, follow your trading rules, and monitor your trade for any changes in market conditions or the technical setup.

As the market progresses, you may want to adjust your stop-loss or take-profit orders based on updated information or if your analysis changes. Feel free to reach out if you need any guidance or assistance along the way. Good luck with your trade!

Thanks. I think we should log each trade with a tags so we can keep track of what works and what doesnt. What tag do you think we should give this setup?

That's an excellent idea! Tagging your trades can help you identify patterns and evaluate the effectiveness of different setups over time. Based on your rationale for this trade, I suggest using the following tags:

  1. VAL (Value Area Low)
  2. Symmetrical Triangle
  3. Support/Resistance
  4. Consolidation

These tags capture the key elements of your current trade setup, which involve trading near the value area low within a symmetrical triangle pattern and taking support/resistance levels into consideration. By using these tags, you can later analyze the performance of similar trades and determine if any adjustments to your strategy are necessary.

Remember to maintain a detailed record of your trades, including the rationale, entry and exit points, and outcomes, so you can review and learn from them in the future. If you need any assistance or have questions, feel free to ask. Good luck with your trade!

Thank you. I think these are good tags. Lets keep them. I also think its important to note its weekend and there is significant difference in liquidity compared to a normal weekday. With that in mind, can you also log the time (morning, afternoon, evening, night) and day of the trades)'

That's a great point. Logging the time and day of your trades can help you identify any potential patterns or differences in market behavior during different time periods or days of the week, including weekends when liquidity might be lower.

For the current trade, I'll add the following tags:

  1. Weekend
  2. Time of day (you can specify whether it's morning, afternoon, evening, or night when you executed the trade)

Make sure to include these additional details in your trading log for future reference. As you gather more data, you can analyze the performance of your trades across various times and days, allowing you to fine-tune your trading strategy accordingly.

If you need any further assistance or have questions, feel free to ask. Good luck with your trade!

perfect! Time of the first trade can be logged as morning

Great! I've added the “Morning” tag to your current trade. Here's the updated list of tags for your trade:

  1. VAL (Value Area Low)
  2. Symmetrical Triangle
  3. Support/Resistance
  4. Consolidation
  5. Weekend
  6. Morning

Remember to consistently log the time and day of your future trades, along with the other tags, to gain valuable insights into the market's behavior and your trading performance during different periods.

If you need any further assistance or have questions, don't hesitate to ask. Good luck with your trade and your trading journey!

Another note. Above you mention to consider an initial target of 28,234 as this would be a 3% increase. You are correct in that this would be a 3% increase on the price itself, but this would not give me an actual risk:reward ratio if 1:3 in that my stop loss is calculated to based on equity. So the range from my entry to stop loss level is not an actual move of 1% on the price, but it would result of a 1% loss of my equity. Hence the correct way to look at this to get a 1:3 risk:reward ratio would be to take price zone between my stop loss and entry point, and multiply that by 3.

You're correct, and I apologize for the confusion in my earlier response. To accurately calculate the risk-reward ratio based on equity, you should follow the method you've described. Here's the corrected approach for determining the profit target based on a 1:3 risk-reward ratio:

  1. Calculate the price difference between your entry point and stop-loss level: 27,411.9 – 26,990 = 421.9
  2. Multiply the price difference by 3: 421.9 * 3 = 1,265.7
  3. Add the result to your entry point: 27,411.9 + 1,265.7 = 28,677.6

Based on this calculation, your profit target should be around 28,677.6 to achieve a 1:3 risk-reward ratio based on equity. Make sure to update your take-profit order accordingly.

Again, I apologize for the earlier confusion and appreciate your diligence in maintaining accurate risk management. If you need any further assistance or have questions, feel free to ask. Good luck with your trade!

also note that with the broker I use, there is a 0.05% on crypto trades and 0.01% on any trades not crypto. These are halfturn fees so 0.1% roundturn on crypto and 0.02% roundturn on anything not crypto. We should note the fees down in our log for each trades as well

That's a great point! Logging the fees associated with each trade will give you a more accurate picture of your net profit or loss. Here's the updated list of details to include in your trading log:

  1. Trade direction (long/short)
  2. Instrument (e.g., BTCUSD)
  3. Position size
  4. Entry point
  5. Stop-loss level
  6. Take-profit level
  7. Tags (e.g., VAL, Symmetrical Triangle, Support/Resistance, etc.)
  8. Time of day (morning, afternoon, evening, night)
  9. Day of the week (weekday or weekend)
  10. Fees (half-turn and round-turn fees)

For your current trade in BTCUSD, the round-turn fee for crypto trades is 0.1%. Make sure to include this fee in your log and calculations for net profit or loss.

Continuing to log these details consistently for all your trades will help you better analyze your trading performance and make more informed decisions. If you need any further assistance or have questions, feel free to ask. Good luck with your trade and your trading journey!

Good morning. The trade I executed yesterday has not reached its profit target and has not hit stop loss. As the trade was open overnight, the broker charged financing, which for this night was 0.0389% on the position size. Can you add this to our log?

Good morning! I hope you had a good night's rest. I'm glad to hear that your trade is still active and hasn't hit the stop loss or profit target yet. It's important to keep track of overnight financing charges, as they can impact your overall trading performance.

Here's the updated list of details to include in your trading log, with the addition of the financing charge:

  1. Trade direction (long/short)
  2. Instrument (e.g., BTCUSD)
  3. Position size
  4. Entry point
  5. Stop-loss level
  6. Take-profit level
  7. Tags (e.g., VAL, Symmetrical Triangle, Support/Resistance, etc.)
  8. Time of day (morning, afternoon, evening, night)
  9. Day of the week (weekday or weekend)
  10. Fees (half-turn and round-turn fees)
  11. Financing charges (overnight financing)

For your current trade in BTCUSD, the overnight financing charge is 0.0389% on the position size. Make sure to include this fee in your log and calculations for net profit or loss.

Continuing to log these details consistently for all your trades will help you better analyze your trading performance and make more informed decisions. If you need any further assistance or have questions, feel free to ask. Good luck with your trade and your trading journey!

so BTCUSD traded up to a high of 28,258 (which actually proved to the the range VAH as this is dynamic and changes as price evolves). But I was not home at that point. After reaching the VAH, is has been trading lower and it currently at 27,824.5. I decided to take partial profit on the trade, given the clear rejection of the VAH level. So I have closed 0.002 of my position at a price of 27,828.7. I have also moved the stop loss on the remaining position to 27,420 which is slightly above my entry level, and allows for a bit of slippage to still remain a profitable / breakeven trade. I will let the remaining part run until it either hits my stop loss or reaches the daily level at 28,332 where I plan to take an additional part out, and lets the final portion run. I am also looking to enter a possible short trade at the daily level. If BTCUSD continue up, the new short trade will be closed out, and the remaining part of my long trade will continue. If price does reverse, I and come down to my stop loss level my short will profit and remaining part of the long will be closed out.

Thank you for providing the update on your BTCUSD trade. It's great to see that you're actively managing your position and adjusting your strategy based on the market conditions. Here's a summary of your trade adjustments and your current plan:

  1. Partial profit: Closed 0.002 of your position at 27,828.7
  2. Stop-loss: Moved to 27,420 (slightly above entry level) for the remaining position
  3. Future actions: a. Take additional profit at the daily level of 28,332 b. Let the final portion run after taking additional profit c. Consider entering a short trade at the daily level of 28,332

Your plan to potentially enter a short trade at the daily level and allow the remaining long position to continue running seems to be a strategic approach to capture potential profits in both directions. It's important to keep monitoring the market conditions and adjust your trades accordingly.

Please make sure to log the changes in your trade and the additional information you provided, such as the partial profit taken and the adjusted stop-loss level. This will help you in analyzing your trading performance and decision-making process later on.

If you need any further assistance or have questions, feel free to ask. Good luck with your trades!

okay I am about to go to bed. I have done the following: On my long trade I have added take profit level of 0.002 of the position at 28,260. The remaining 0.002 will continue to run with no take profit level placed (or maybe turn and hit stop loss). I have added a new limit sell order of 0.006 at 28,300 with a stop at 28,800.

Thank you for sharing the updates on your trades before going to bed. Here's a summary of your current trading positions and orders:

Long trade (BTCUSD):

  1. Position size: 0.004 remaining (after taking partial profit earlier)
  2. Stop-loss: 27,420
  3. Take-profit: 0.002 of the position at 28,260
  4. The remaining 0.002 will continue to run without a take-profit level (or possibly hit the stop-loss)

New limit sell order (short trade):

  1. Position size: 0.006
  2. Entry: 28,300 (limit sell order)
  3. Stop-loss: 28,800

It's great to see that you're actively managing your positions and setting up orders based on your analysis and market conditions. Make sure to log these updates and orders for future reference and analysis.

Sleep well, and if you need any further assistance or have questions when you're back, feel free to ask. Good luck with your trades!

Good afternoon. The remaining long position was open overnight, so financing was charged once again, on this position. The same financing rate as yesterday was applied. Now not long ago, bitcoin started to drop, and come down and hit my stop loss. The trade got closed out 27,404.7

Good afternoon! I hope you had a good rest. Here's the update on your remaining long position in BTCUSD:

  1. Financing charge: Applied overnight at the same rate as yesterday (0.0389% on the position size)
  2. Stop-loss hit: The trade closed out at 27,404.7

It's important to keep track of overnight financing charges and how they impact your overall trading performance. Make sure to log this information in your trading log.

It's unfortunate that your long position hit the stop-loss, but it's a part of the trading process. Remember that managing risk and learning from both profitable and unprofitable trades are crucial for long-term success in trading.

If you have any new trades or need further assistance, please don't hesitate to ask. Good luck with your trading journey!

Yes so I also had a limit short placed at the daily level. This has not been triggered, so I will delete this for now, as this plan is somewhat invalidated now, that price has moved down initially.

Thank you for the update. It's a good practice to reassess your trading plans and cancel orders that are no longer valid based on the current market conditions. Since your limit short order at the daily level has not been triggered and you believe the plan is no longer valid, it's appropriate to cancel the order.

Make sure to log this decision and the reasons behind it in your trading log. Continuously evaluating and adjusting your trading strategy based on market conditions is essential for successful trading.

If you need any further assistance, have questions, or want to discuss new trade ideas, please feel free to ask. Good luck with your trading journey!

Then yesterday I took three new trades. First trade was a long of 0.004 at 27,380.3. This hit my stop loss at 26,800 and got closed out at exactly that price. Next I took at long trade of 0.008 at 26,660 with a stop loss at 26,360. This was based on the touch of a low volume node, and a break of a recent swing low point. This trade was kept open overnight and is still open. There was a financing charge on this tade as it was kept open overnight. The financing rate was the same as previous financing rate. The final trade was a long of 0.008 at 26,876.1. Stop loss for this trade was at 26,576.1. I close this trade out a bit later, manually, at 27,077.6.

Thank you for sharing the details of your three new trades. Here's a summary of each trade and their current status:

  1. Trade 1 (Long BTCUSD)
  • Position size: 0.004
  • Entry point: 27,380.3
  • Stop-loss: 26,800 (hit, closed out at exactly this price)
  1. Trade 2 (Long BTCUSD)
  • Position size: 0.008
  • Entry point: 26,660
  • Stop-loss: 26,360
  • Status: Open (overnight financing charge applied at the same rate as previous trades: 0.0389% on position size)
  1. Trade 3 (Long BTCUSD)
  • Position size: 0.008
  • Entry point: 26,876.1
  • Stop-loss: 26,576.1
  • Closed manually at 27,077.6

Make sure to log these trades and their details in your trading log, including the financing charges for the open trade. Keeping accurate records of your trades will help you analyze your performance and make better-informed decisions in the future.

If you need any further assistance, have questions, or want to discuss new trade ideas, please feel free to ask. Good luck with your trading journey!

Can you show me a grid of all the trades I have taken so far?

Of course! Here is a summary of all the trades you've shared with me so far in a tabular format:

Trade No.DirectionPosition SizeEntry PointStop-LossTake-ProfitClose PriceStatusNotes
1Long0.00627,411.926,99028,331 (TP1)27,828.7Partially closedTags: VAL, Symmetrical Triangle
1 (cont.)Long0.00227,411.927,42028,260 (TP2)27,404.7Closed 
2Long0.00427,380.326,80026,800Closed 
3Long0.00826,66026,360Open 
4Long0.00826,876.126,576.127,077.6ClosedManually closed

Please note that the table above does not include financing charges, fees, or trade times/days. Ensure you log these additional details separately in your trading log.

If you have any questions or need further assistance, please feel free to ask. Good luck with your trading journey!

Can you log the commission on the trades as well. There is a 0.05% per trade. Hence when I open a trade I pay 0.05% of the volume and when I close the trade I pay 0.05% of the volume. So as an example to open a trade of 0.001 BTC I pay 0.0000005 BTC in commission. So to open and close a trade of 0.001 BTC I pay 0.000001. Can you add this into the table?

Certainly! Here's the summary of all your trades with the included commission charges for both opening and closing each trade:

Trade No.DirectionPosition SizeEntry PointStop-LossTake-ProfitClose PriceStatusNotesCommission (Open)Commission (Close)
1Long0.00627,411.926,99028,331 (TP1)27,828.7Partially closedTags: VAL, Symmetrical Triangle0.00000030.0000001
1 (cont.)Long0.00227,411.927,42028,260 (TP2)27,404.7Closed 0.00000010.0000001
2Long0.00427,380.326,80026,800Closed 0.00000020.0000002
3Long0.00826,66026,360Open 0.0000004
4Long0.00826,876.126,576.127,077.6ClosedManually closed0.00000040.0000004

Please note that the table above does not include financing charges or trade times/days. Ensure you log these additional details separately in your trading log.

If you have any questions or need further assistance, please feel free to ask. Good luck with your trading journey!

Another thing I have not mentioned is that when I open trades I often open them in multiple trades of smaller sizes. The reason for this is that my broker does not allow me to close a part of an open position. Hence when I open multiple trades, I can close “partial profit” by closing actual trades. But as I try to get all trades executed close to the same time, the rate is often the same.

Thank you for providing this additional information. It's essential to adapt your trading approach to the specific conditions and limitations of your broker. Opening multiple smaller trades to simulate partial profit-taking is a valid strategy, given your broker's restrictions on closing partial positions.

When logging your trades, make sure to record the details of each smaller trade, including entry and exit points, position size, commission, and any other relevant information. This will help you keep track of your overall performance and make better-informed decisions in the future.

If you have any questions or need further assistance, please feel free to ask. Good luck with your trading journey!