Harnessing AI in Trading: Three Powerful Approaches

If you haven't been sleeping under a rock, you've probably heard a lot about AI and how it's going to change the world. You may have heard it's creating some waves in the trading world, as well.

Of course, you can't believe everything you hear, but AI is already changing the world, and the future will bring AI models far more powerful than what we have today.

The big question is, how can you make use of AI for trading?

Let's look at three powerful ways you can use AI for trading to improve performance and even trade for you.

Plug-and-Play AI Trading Bots

Turnkey AI trading solutions allow you to harness AI without extensive (or any) programming knowledge. You can receive signals from pre-built AI trading models, generate your own signals, and have the AI trade for you, all with the click of a few buttons.

• Pre-built Ai Trading Signals: Platforms like Trade Ideas offer sophisticated AI-driven trading signals. Their AI, known as "Holly," scans the market and identifies potential trades based on historical data and pattern recognition. I really like that it's not built on indicators, rather the successful trading patterns of long-term successful traders.
• User-Created Bots: Trade Ideas also allows you to create your own automated trading bots. You can mix and match from a library of over 8,000 existing signals and conditions, or create your own. This allows you to customize based on your individual trading strategies and preferences.
• Ease of Use: These use-friendly solutions allow you to quickly set up and deploy trading bots without needing to dive into coding. You can choose whether you want to receive alerts and trade manually or have the AI do it for you. You can choose to trade one instrument or a list of specific instruments. You can even trade the signal automatically as it occurs on any stock or instrument across the entire market.

Use AI for Trading Performance Analysis and Improvement

If you're not analyzing your trades, you should. And if you're only analyzing manually, there's now a much better way!

AI-driven analysis tools can help you understand your performance and find areas for improvement. You can use artificial intelligence to find leaks or lost profits and backtest changes using real data. Adapting based on AI analysis can lead you to better strategy optimization and more informed trading decisions.

• Performance Analysis with AI Trading Journals: Yes, some online trading journals are much more than that! Journal like TradesViz and Tradersync use AI to provide detailed performance analytics and much more. Tradersync AI allows you to see how performance would have differed based on changes you can make to your strategy.
• OddsMaker from Trade Ideas: Trade Ideas offers the OddsMaker, an AI-powered backtesting tool that evaluates the profitability of trading strategies. It allows you to change variables in your strategy on the fly and see how it affects results, which can lead to some major optimization gains.
• Continuous Improvement: AI analysis tools do a lot of heavy lifting, making it much easier for you to continuously monitor and analyze your performance - All of which is necessary to adapt to changing markets and maintain your edge.

Use AI to Write Code for Trading Bots

It's no secret that AI models can spit out code faster than we humans can type English. So, of course AI can help you write and optimize code for trading bots. The code isn't perfect, but with some trial and error, you can make it work.

• Script Generation with ChatGPT: You can use AI tools like ChatGPT to create scripts for trading platforms like ThinkOrSwim and Ninjatrader. You can have it start from scratch, which works well for ToS, in my experience. For Ninjatrader, you're better off feeding it an existing script. Have it tell you waht the script does, just to make sure you're on the same page. Then have it make changes to adapt the script to what you want.
  
  You can do this for alerts only, or fully functional automated strategies that you can backtest and deploy in live trading. And there are many strategy scripts out there for free that you can use as a starting point.
• Efficiency and Customization: You can go from 0 to 100 on creating scripts for trading, which wasn't possible before ChatGPT. I had never coded a script in my life when I made my first script using ChatGPT. Imagine my excitement after creating a script in a few minutes, backtesting it, and testing it live all in one day! Now imagine what you could do with it!
  
  You'll still have to monitor your trades while the script places them, of course. But at the very least, automating your entries should majorly increase your efficiency with any strategy. Automated exits and entries also helps you follow your trading rules, manage risk, and prevent emotion affecting your trading.
• Adaptability: Editing trading scripts using ChatGPT allows you to quickly tweak your script for the best performance. And, as markets evolve, you can use it to quickly adapt your scripts to the ever-changing market and keep your edge.

Conclusion

AI trading tools offer significant advantages, from analyzing performance to automating human trading behaviors and creating complex autotrading models. No AI trading bot will ever be "set and forget", but leveraging the power of AI and automation can allow you to do more with less.

Using tools like ChatGPT and platforms like Trade Ideas and Tradesviz, you can enhance your strategies, improve efficiency, and achieve become a better trader. As AI tech continues to advance, its applications and capabilities with expand, so getting started with it now will position you to take advantage as it grows more powerful.