On November 30th 2022 the world changed forever. Artificial intelligence or Ai became accessible
to the general public For free And this happened because of a little thing
called, chatgpt *chatgpt* montage.
Ai is getting more and more powerful every single
day. It starting to beat actual professionals in
chess, poker, videos games, and even camel racing?
Yes, believe it or not, that is a robot on that camels back. Controlling it in a camel
race. I didn t even know they raced camels. So, it got me thinking. If artificial intelligence
can beat humans in very advanced activities like chess.
Could it beat humans in something as advanced as trading in the stock market?
Which if you really sit down and think about it, there are multiple reasons why AI would
be better than humans at trading. Speed and efficiency. Ai can analyze vast
amounts of financial data in the matter of seconds. Which a human obviously cannot do.
Ai s have no emotion. Unlike a human, AI s don t experience emotions such as fear, greed,
or excitement. Which when trading, those types of emotions cloud your judgement and lead
to poor trading decisions. Continuous monitoring. Ai don t need to sleep.
They can trade 24 hour every single day. Which obviously we cannot do. I need my beaty sleep,
ya know? Then finally, consistency. One of the hardest
parts about trading is sticking to a set trading plan. For one reason or another we ve all
diverged from our trading plan atleast once. Whether that s moving a stop loss, entering
early, exiting late. Whatever it is, you ve probably done it. The thing about AI, it will
always stick to that trading plan no matter what.
So I wanted to put it to the test. I coded a trading bot from scratch with all
the trading knowledge I ve learned from the past 8 years.
I coded everything I know into this bot. The ability to read market structure, momentum,
volume, level II data, everything. I basically wanted to create me and my trading
style and how I would personally trade into a little baby robot.
This bot will automatically enter, exit, and make every single trading decision for me.
While I eat a peanut butter jelly sandwichs on my couch watching ai camel racing.
So I wanted to know what would happen if I put $30,000 into a brand new trading account
and completely left the bot alone and let it trade for me for 1 week.
Would I actually make money on autopilot? Or would I lose the $30,000 within seconds?
Now I had to make some rules for this video. I m not a loud to interfere with this account
at all, I cant help the bot trade in any way, all I can do is turn on the bot, and let it
trade. It s kind of like a game show.
I m gonna call it. Does this Ai Strategy really work? Or is it a money loser? Game show. By
tradinglab So the code we are going to be using for the
ai is from my own personal private indicator from tradinglab.ai.
Now my indicator is only available on Meta Trader 5. Which is a charting platform.
And to be honest, its probably one of the worst looking trading platforms out there.
Like it literally looks like 2001 excel. So you may be asking, why are you using this
absolute abomination of a charting platform? Well there is one specific reason why I like
Meta trader so much. And that reason is They make it extremely easy to connect bots to
automatically trade for you. Because normally, you would need to code an
indicator, have that indicator send its signals to a trading bot, then have that bot, send
its signals to a stock trading API, and have that API, execute the orders.
Which if you have no idea what im talking about, this may sound slightly easy, let me
tell you, its not. Which im going to be completely honest, coding
all of this is probably the worst thing on planet earth.
On meta trader they make it really easy to do it.
You essentially connect what called an EA which stands for Expert advisor which is basically
another word for bot. I guess it sounds more professional tho.
*ahhh yes, ill have my expert advisor take care of it
Anyways, as long as you have the indicator or whatever is providing the signals, connecting
it to a broker is infinitely times easier on Meta Trader then creating it manually.
So that s the main reasoning for why we are using Meta trader.
So its quite simple actually. After I have the EA setup. Every time my indicator gives
a buy signal, the EA will note that, send an execution order to my broker, my broker
will then buy it. Then once the indicator gives a sell signal, the broker will automatically
sell it. Completing the trade. Pretty simple. So now that we know what code im using, how
im going to use that code to automatically trade for me, we move to next step which is
funding my brand new account. So when I originally thought of this video
idea I was originally just going to trade with just $1,000. But if you re watching this
video now, you ll see in the title I says I gave the Ai $30,000. Hmm, weird right. So
how did I go from $1,000 to $30,000? Let me explain.
So my indicator gives both long trades and short trades. Which if you don t know, long
trades you make money as the chart is going up, short trades, you make money as the market
is going down. In order to short stocks, you need to be able
to use margin. Which is borrowing money from you broker.
And I completely forget there is stupidest rule on planet earth that the SEC made called
the pattern day trading rule . Which basically means in order to use both margin and do more
than 3 consecutive day trades a week I need a margin account. Which if I want a margin
account, I need to add $25,000 or more into the account.
I ended up putting $30,000 in so I had some wiggle room.
So I went from wanting to only put $1,000 to putting $30,000. Which means if this ai
strategy goes terribly wrong, well, pray for me.
So once I realized this rule, all I have to do is fund $30,000 into my trading account.
I feel like this is great time to talk about today s sponsor.
Hankotrade. Hankotrade is who I personally use as my forex
broker. Its kind of funny because I used them way before they asked to sponsor me, so when
they did, I frantically said yes. They are overall just a good forex broker.
Low fees, low spreads, easy to use platform. And one of the main reasons why I like them
so much is because they are one of the few brokers you can hook up directly to the EA
I was talking about before on Meta Trader. So they make it really easy to setup automatic
trading bots. If you use the link in my description. They
will match whatever you first deposit. So if you deposit say $100, they give you $100.
Thank you hankotrade for sponsoring this video. I love you.
Alright, so the account is now funded. But we ran into a slight issue.
If you ve ever watched one of my videos before, I always say time and time again to never
follow the private indicator blindly, by just following the signals.
Which is essentially exactly what we are about to do.
There are multiple reasons for why this is not a good idea.
One being if the market is super bearish and is falling, the indicator still might give
you a long entry buy signal. Which as we all know, is a big no no.
So what I usually always recommend is using the indicator as more of a tool rather than
blindly following it. Use the trend table it provides, use the orderblocks, and all
of its other features. and use them as tools to HELP you make trading decisions rather
than it making the trading decisions. Which as I said, if the bot is trading for
us, its blindly following the signals. Which is kind of a bummer.
And I thought that ruin the whole video if I was helping it make decisions on which specific
signals to put more weight on. So I had to do some brain storming.
Because the indicator can t really read market sentiment by itself. That is, Until now.
I added a feature that you can manually or automatically adjust the market sentiment.
So for example, if for some reason you think the market is going to be very bearish that
week, because of rising interest rates, bad economic news, a war is breaking out, or Donald
trump made another tweet. You can just go to the indicator settings
and say the market sentiment is bearish. Which then, the indicator will automatically
give you less long trades and more short trades. Giving the short trades more weight during
this period. If you said the market sentiment is bullish.
It will show you more long trades compared to short trades.
Adding just this one little tool to the indicator, has greatly increased the profitability of
it, atleast when it comes to just blindly following it. It also makes me feel way more
comfortable, letting the bot follow the signals blindly with $30,000.
As im editing this now, its now Saturday. And I plan to start this 7 day challenge on
Monday. But to be honest, I have no idea what s about
to happen. And im kind of scared. No im really scared.
It will be cool to see if the bot can make money completely on its own without me doing
absolutely any work. Because its almost kind of my baby and it would be like uh proud dad
moment. Like Imagine if you birthed a baby and made
the baby go into work for you as you watched ai camel racing and it came home every day
with a bag. Like, that would be the definition of a cool life.
So as the clock ticked down, I got more and more anxious of what was about to happen.
Then, Monday morning came. I woke up at 6:30, went to my computer, and
set the parameters for each trade. For one, I made it so the bot can go above
$5,000 for any single trade. Two, It will only be trading stocks. I gave
it a list of 10 stocks to choose from. Three. Its going to be using the 3 hour timeframe
for its signals as that is the timeframe that performed the best.
Once the parameters were entered. I nervously started the bot.
And then something crazy happened Absolutely nothing.
I waited for about 4 hours and the bot didn t take one single trade. The reasoning behind
this was because we were using the 3 hour time frame and that ended up being a mistake.
Atleast for this experiment, because we wernt getting a lot of signals, so the bot wasn
t making a lot of trades. So I decided to make the bold and rash decision
to change the timeframe to the one hour timeframe. I also looked at the chart history, and if
we were going to do the one hour time frame for a week period. The bot would only take
around like 10 trades. So I decided I would now change the time period
to one month of testing. Just so we can better understand this experiment and get a lot more
trades in to see if this thing actually works. Which kind of sucks because I want to upload
this video right away, but looks like we gotta wait a month.
Which is kind of crazy. Because a lot can happen in one month and that s a lot of time
to purely let a bot trade. So changing from a one week of testing to one month makes me
feel even more nervous. But f it.
I set the bot to trade on the 1 hour timeframe and completely left it alone for one whole
month. Fast forward
Alright guys its been one month. I started this bot on January 17th and it
is now February 18th and the result are in. As I m talking right now. I m looking at the
balance. Im still in absolute shock. I cant believe this happened.
So the bot traded 10 different stocks. Apple, google, Microsoft, amd, nivida, tesla, Disney,
amazon, Visa, Costco. and one of these gave some pretty interesting
results. Can you guess which one it was?
*intense music* That s a little foreshadowing.
First, we ll start with Apple. So just so you guys know what the signals
mean. A green arrow means a long entry. These 1 and 2 s are take profits. If you see a green
x, that means the bot exited, but it was a losing trade.
And it s the Same thing with shorts, red arrow means entry, 1 and 2s take profits, red x
means the bot exited but it was a losing trade. So how did the bot did the bot do for the
very fist trade it took? The first trade to set the momentum for this whole experiment.
It was a loss. It tried entering a short and it looks like
it miscalculated a bit. It printed this red x which means it exited
the short and hit our stop loss. Great start.
And this loss was a 2.3% loss, which means, with a $5,000 entry, makes this a $115 loss.
I could of bought 10 chipotle burritos with that money.
But if you look a little bit closer, something interesting happened.
right as the bot exited the short, it also entered into a long trade.
And this long, actually ended up being a winning trade.
For a 3.5% win. Making all of our money back. Plus $60. So
now we are in the profit baby. AS we move throughout the month, the bot took
4 more trades on Apple. Totaling 6 trades, 4 being winners and 2 being
losers. The bot actually did exceptionally well on
apple, as if we total up all the % s it made, it made a whopping 5.85% profit for the month.
And this is just for apple. Which is absolutely insane. I m so proud.
But since we set a max of $5,000 per trade for risk management purposes.. This 5.85%
isnt 5.85% of the $30,000, it s 5.85% of $5,000. So we made a total of $292.50 on apple during
this one month. Even if it s just $292. It s so cool to think
that the bot did this completely on its own. You did good sport, you did good.
Next we move onto google. For google, we took a total of 3 trades. 2
being winners, one being a loser. It ended up being a great dub as we made a
total of 6.9% for the month. Making $345. Onto the next one. Microsoft.
Microsoft was interesting one. Purely because the bot took the most amount of trades on
Microsoft. So the bot took a total of 7 trades. 5 being
winners, 2 being losers. For one of the losses, the bot entered a long
up here, but it took a little profit before it hit the stop loss, so the loss ended up
not being that bad. After all the trades it took. It profited a staggering 13.25%. Making
a total of $662.50 Our next candidate. Was Tesla.
If you know anything about tesla it is extremely volatile.
And as the test was running, I was watching this one live a lot because both the winners
and losers were super big, so it was very nerve racking watching it live.
Tesla took a total of 5 trades, and profited 24.2% during the month. Making a total of
$1,210. That s absolutely beautiful. Our next ticker, was AMD. And AMD was kind
of a heart breaker. It actually was the bots big loser.
Having a total of 3 trades and 2 being losses. It totaled a 3% loss, losing $150.
Now I don t want this video to be extremely long, so I ll just quickly go over the rest
of the ticker symbols. Feel free to pause the video if you want to see any specific
trades. Nividia. 6 trades, 4 wins, 2 losses. 8.9%
profit. $445. Disney. 3 trades, 3 wins, 0 losses. 8.5% profit.
$425 Amazon. 7 trades. 3 wins, 4 losses. 3.63%
profit. $181.50 Visa. 2 trades. 1 win, 1 loss. 1% loss. -$55.
Costco. 5 trades. 4 wins, 1 loss. 7.6% gains. $380.
But there are some major points we have to go over
Now I want to be extremely extremely clear. One, I think we could of done a lot better
if again, we were using the bot as more of a tool. Rather than just blindly following
it. But at the same time, its pretty cool to have
something like this run completely in the background by itself.
But also, all of these trades for the most part, were traded while the market was trending.
So we might of gotten a little lucky, its hard to tell. As in the last week of the testing
the market started moving sideways a bit more and started to consolidate. Whenever the market
does consolidate, the bot doesn t work as well.
As you can see here, when the market started moving sideways, that s when the bot started
producing more losing trades. So basically the bot does exceptionally well
when the market is trending. And not so good when the market is consolidating.
And for the majority of this test, the market was trending. So keep that in mind.
So that defiantly helped with the results. It could have been a lot worst if the market
was moving sideways the whole time. But if you were to trade manually. You could
easily avoid that with the trend table. Because there is a feature where it will tell you
if the market is consolidating, so you just simply wouldn t trade during this period.
I just wanted to clear that up. So, after totaling all of the trades. The
bot took a total of 47 trades in one month. Out of those 47, 16 were losses, 31 were wins.
And the moment you ve all been waiting for, the bot made a total of $3,736.50. Taking
our account total from $30,000 to $33,736.50. In one month of trading, completely on its
own, without me touching at all. Which is still mind blowing to me.
The bot made a total of 74.73% during the month. So if we didn t put the 5,000 cap per
trade and used all $30,000 for every single trade. We would have made $22,419 in a month.
Without doing any work Which is kind of sacking. But even with that said, I think doing this
over, I would still put the cap, just for risk management purposes. Because if you re
using all of your capital for every single trade, you could easily blow up an account
if you got on a loss streak. So yeah, I think this experiment was a massive
success. After doing this, it really opened my eyes to the potential of what this bot
can actually do. In no way is perfect, but this has kind of
inspired me to work more on the automated features and signals, to make this perform
even better. Because I honestly do think automation is
the future of trading. And if you re early, there is some serious potential for profits.
So maybe ill keep this bot running in the background for a year or so and let you guys
know what ends up happening on my Instagram. If you re not following me on Instagram, what
are you doing
But I could not be any more proud with the results it produced.
If you guys want to check out the private indicator for yourself. You can go to tradinglab.ai.
Ill put a link in the description. If you made it this far in the video, I just
want to say thank you. This video took me 37 days to make. Which
is the longest ive ever worked on a video. So thanks for watching till the end.
Because you made it to the end, here s a coupon for the indicator. Ill make it
Aiissexy. Thanks for watching and ill see you guys,
next time.