Have you seen this?

Howdy Trader!

I know, I know, its been way too long since I sent you an email. I have been freshly baking some new content that I think you will love!

Let me catch you up on what I have been up to.

I am sure you have seen the AI craze/hype/bubble thats been going on.

What if we could use AI to do something we are very good at but its very hard to put into code?

Let me explain with an example:

All three satisfy what it means to be a hammer candlestick. However, how little is the little in little to no upper wick ?

What does it mean mathematically to have a small body ? Is it 30% of the candle length? Maybe 20%?

What does a long wick even mean? What are we comparing it to in order to say hey! this wick is long and this one is medium.  

The rules are quite vague and the vagueness carries over when you want to create a program that identifies this things.

And thats where AI comes in!

During training, these models have seen all kinds of hammers , dojis, trends, you name it!

We can leverage this by asking AI to see the chart and draw these patterns for us.

Take this a step further, you can ask the AI to give a trading signal recommendation based on what they saw on the chart!

And thats what I have done with this Free trading bot.

It combines the accelerator oscillator and Gemini (AI model from Google) to build an AI assisted strategy.

Here is how its doing so far:

I am very impressed with the performance on identifying the trends and the chart patterms but it has a long way to go with the candlesticks.

I know what your’re thinking…

but she just said we will use it for that!

before you come at me, bear in mind all that has been powered with this simple prompt:

We have not given the model any more context than this.

For that, I think its doing pretty great!

With these AI models the adage garbage in garbage out is even more relevant! Poor prompt poor results.

On the next iteration I want to explore how we can better this prompt so that we can get the best of both worlds; using code and AI to build even more robust trading systems.

I have covered this in depth here:

As always you can try out the free bot here. Comes with a complete guide on how to setup everything no code needed!

Please give it a go and let me know how we can further improve it!

That’s all for today! Talk soon!