Use modern tools to automate your trading.My partner @Mayfair_Ventures and I like innovation, but we have been sceptical of bot-driven trading. This if for one simple reason. If it was available and consistently profitable, then someone would be doing it, then others would find out, then everyone would be doing it. No one would need a job.
If you know about chaos theory, then you'll recognise trading as one example of where it fits. Chaotic things are inherently extremely hard to predict, as a rule. The best we can do is predict small amounts, like what the weather may do this afternoon. What it's going to do in 5 days' time is exponentially harder.
Let's stick to the "we can predict this afternoon" model. At this level I think bots can be useful, and recently we've been looking at short-term trading on the 1 minute time-frame (Even though we don't recommend it) because people always ask us about it.
There are a couple of streams here..
www.tradingview.com
www.tradingview.com
Now to automation. We started to mess around with @TradingView indicators and web hooks first. Web hooks allow you to propagate alerts from TradingView to an outside platform, like your phone, or email, whatever. Best of all, you can do it from your custom indicators as well.
Then we thought: "how about just letting our indicator do the trade, so we can carry on with our round of golf"? As long as the timing is right, in other words, if we were at the screen we would take the trade, this makes sense. We can make our indicator only send signals at certain times of day, or whatever other thing we can think of.
There are a few programs that will do this. I had a look at one from 3Commas. Others exist but I haven't looked at them yet. It takes the signal just like your phone does.
You need to add your exchange (I use Binance) to it.
I write 2 bots using simple templates they supply. One to go long, one to exit the long. You don't need an stop loss because it knows your max risk and does it for you.
I set alerts based on my indicator (yes you have to get ChatGPT to make an indicator for you or write one!), not a price, so when my indicator is hit, the alerts fire and whichever bot is connected to the alert bot does a trade.
That's it. I am playing about with it on a demo account first, because I am not an idiot.
Yes it's true, ChatGPT can write Pinescript. It gets it wrong sometimes, but just tell it and it tries to fix it.
