Economy

Exploring The Capabilities Of The ChatGPT Trading Bot In Today’s Market

Published

2 years ago

02/10/2023

Traders Union (TU) recently took an interest in ChatGPT, a chatbot by OpenAI. Think of ChatGPT as a super-smart robot friend who loves to chat about almost anything! It’s famous for giving detailed answers to loads of questions. But, like every friend, it might get things wrong sometimes. There’s a free version everyone can chat with, and a fancier version called ChatGPT Plus for those who want more. Some even call it the “ChatGPT trading bot” because of its extensive knowledge about trading.

ChatGPT’s trading capabilities

Without a doubt, ChatGPT has carved a niche for itself in the automated trading sphere, offering several significant benefits:

Strategic development

ChatGPT can be tapped to produce trading blueprints, metrics, or algorithms when given specific market conditions or parameters. After creation, these tactics can undergo further perfection and testing.

Coding for trading robots

With ChatGPT, one can craft specific codes for trading automation systems, suited to your chosen coding language, be it Pine Script or Python. Once created, these scripts are adaptable and can be melded into various trading interfaces or APIs.

Historical market insights

Even though ChatGPT’s data stops in 2021, it remains a handy tool for delving deep into past market trends. Marrying ChatGPT with up-to-date data streams or APIs can lead to a setup that assesses market data and churns out pertinent trading cues.

AI trading bots: what experts have to say

When it comes to the world of AI trading bots, TU’s experts highlight both the benefits and the challenges. On the plus side, these bots offer rapid, emotion-free decisions that can capitalize on round-the-clock market opportunities across multiple platforms. They also grant traders relief, taking on the heavy lifting of regular market monitoring. The bot’s performance, however, is determined by its algorithm, which can lead to losses if it’s flawed. Setting them up also demands a hands-on approach, and their adaptability isn’t always on par with rapid market changes.

Overall, these bots seem promising with their speed and round-the-clock market watch. However, according to Traders Union’s analysts, there are a few areas where they might not be perfect.

Pros:

Quick, informed decisions
Emotion-free trading
24/7 market presence
Versatility across markets
Hassle-free trading

Cons:

Reliant on algorithm quality
Complex initial setup
Struggles with swift market shifts

Essential AI trading bot creation tips

Building an AI trading bot can seem complex. TU’s analysts recommend keeping the following tips in mind to streamline the process:

Blueprint your strategy: сlearly map out your bot’s intended trading techniques.
Select a language: Python is a favorite because of its rich libraries and ease. Ensure compatibility with trading APIs.
Quality data matters: use clean, up-to-date market data to train your bot effectively.
Pick the right tools: experiment with various machine learning tools for best results.
Test before live trading: use historical data to test and refine your bot’s performance.
Safety first: embed risk management strategies to protect your investments.
Stay alert: continuously monitor, and update your bot’s algorithms to adapt to the market.
Secure your bot: shield your bot from threats and ensure it adheres to trading regulations.
Match your trading style: choose a bot rhythm that aligns with your personal trading pace.
Versatility is key: your bot should perform well across different market conditions.

Keep these guidelines in hand, and your bot’s creation process becomes smoother and more efficient.

Conclusion

Traders Union’s analysts have found that AI technologies, exemplified by systems like ChatGPT, are changing the way trading is done. These AI tools offer the ability to make decisions based on vast amounts of data, work without getting tired or emotional, and operate non-stop. However, they’re not just plug-and-play; they demand a lot of understanding and need to be watched closely. As trading increasingly shifts to a digital world, traders who are familiar with these AI tools and can effectively manage them stand to benefit the most in the evolving financial world.

Up Next

Oando-Eni Deal: Workers Threaten to Shutdown Operations

Don't Miss

BUA Cement Slashes Ex-Factory Prices to N3,500

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Click to comment

Economy

Newrest Asl, Two Others Lift NASD OTC Bourse by 0.21%

Published

3 hours ago

16/04/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.21 per cent on Tuesday, April 15, helped by three stocks on the trading platform.

During the session, the NASD Unlisted Security Index (NSI) jumped by 6.73 points to 3,271.02 points from the previous session’s 3,264.29 points and the market capitalisation increased by N3.94 billion to close at N1.915 trillion versus the N1.911 trillion it ended on Monday.

Trading data showed that there was a 68.7 per cent rise in the volume of securities transacted in the session as 736,215 units were quoted compared to the 436,357 units traded in the previous trading day, the value of transactions jumped by 20.5 per cent to N12.2 million from N10.1 million, while the number of deals fell by 49 per cent to 26 deals from 51 deals.

Yesterday, Newrest Asl Plc gained N3.45 to close at N37.97 per share compared with the preceding day’s N34.52 per share, FrieslandCampina Wamco Nigeria Plc went up by N1.82 to close at N37.45 per unit versus Monday’s price of N35.63 per unit, and Mass Telecom Innovation Plc expanded by 1 Kobo to trade at 41 Kobo per share against the 40 Kobo per share it ended a day earlier.

However, Central Securities Clearing System (CSCS) Plc lost 20 Kobo to finish at N20.70 per unit compared with the previous closing value of N20.90 per unit, and Geo-Fluids Plc dropped 20 Kobo to settle at N1.80 per share versus the previous day’s N2.00 per share.

Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units worth N520.9 million, followed by Okitipupa Plc with 153.6 million units sold for N4.9 billion, and Industrial and General Insurance (IGI) Plc with 71.2 million units worth N24.2 million.

Okitipupa Plc remained the most active stock by value (year-to-date) with 153.6 million sold for N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 14.7 million units valued at N568.1 million, and Impresit Bakolori Plc with 533.9 million units worth N520.9 million.

Economy

Naira Appreciates to N1,601/$1 at Official Market, Remains N1,615/$1 at Black Market

Published

3 hours ago

16/04/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira appreciated against the US Dollar by 0.24 per cent or N3.85 at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, April 15, closing at N1,601.40/$1 compared with the previous day’s N1,605.25/$1.

However, according to data from the Central Bank of Nigeria (CBN), the Naira depreciated against the Pound Sterling in the official market yesterday by N59.23 to sell for N2,115.26/£1 compared with Monday’s closing price of N2,056.03/£1 and tumbled against the Euro by N38.75 to trade at N1,808.89/€1, in contrast to the previous session’s N1,770.14/€1.

As for the black market, the Nigerian Naira maintained stability against the Dollar during the trading session at N1,615/$1.

The Nigerian currency closed mixed on Tuesday as Nigeria’s inflation data edged up to 24.23 per cent in March, according to the National Bureau of Statistics (NBS) on Tuesday.

It was the first time the Consumer Price Index (CPI) has risen since it was rebased in January. The new rate indicates an upward movement of 1.05 per cent from the 23.18 per cent reported in February 2025, signalling a return to levels (24.48 per cent) recorded in the beginning of the year after the CPI rebasing.

In the cryptocurrency market, there were major negative outcome as Nvidia, which plays a crucial role in mining cryptocurrencies, received a US ban restricting its H20 chip sales to China.

This adds to fears triggered by President Donald Trump’s trade war with China and other trading partners, leading to profit-taking.

Cardano (ADA) lost 5.5 per cent to trade at $0.6055, Solana (SOL) slumped by 4.2 per cent to $125.44, Ethereum (ETH) slid by 4.0 per cent to $1,570.96, and Ripple (XRP) dropped 3.9 per cent to $2.05.

In addition, Dogecoin (DOGE) depreciated by 3.8 per cent to $0.1535, Litecoin (LTC) went down by 2.7 per cent to $75.72, Bitcoin (BTC) fell by 2.4 per cent to $83,405.30, and Binance Coin (BNB) shrank by 1.3 per cent to $580.40, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were flat at $1.00 each.

Economy

NGX Index Chalks up 0.03% Despite Weak Investor Sentiment

Published

5 hours ago

16/04/2025

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited bounced back to the green territory on Tuesday with a 0.03 per cent growth amid a bearish market sentiment.

Data showed that the bourse finished with 24 price gainers and 29 price losers, representing a negative market breadth index and weak investor sentiment.

This was due to the persistent cautious trading by the market participants because of the global trade war between the United States and China.

Business Post reports that the banking space was down yesterday by 0.11 per cent as a result of profit-taking activities by investors, though this did not affect the general outcome of Customs Street because of the gains recorded by the others.

The consumer goods index appreciated by 0.72 per cent, and the insurance counter improved by 0.15 per cent, while the energy, industrial goods and commodity sectors closed flat.

At the close of business, the All-Share Index (ASI) chalked up 30.40 points to settle at 104,560.02 points compared with the previous day’s 104,529.62 points and the market capitalisation grew by N19 billion to N65.704 trillion from N65.685 trillion.

Abbey Mortgage Bank gained 9.94 per cent to sell for N7.41, Unilever Nigeria appreciated by 9.65 per cent to N38.05, Learn Africa jumped by 8.33 per cent to N3.25, Secure Electronic Technology surged by 7.41 per cent to 58 Kobo, and Consolidated Hallmark advanced by 7.27 per cent to N2.95.

On the flip side, Northern Nigeria Flour Mills declined by 9.97 per cent to N79.00, The Initiates fell by 9.57 per cent to N4.25, Caverton descended by 9.06 per cent to N2.31, Guinea Insurance depreciated by 8.70 per cent to 63 Kobo, and NGX Group lost 8.56 per cent to quote at N31.50.

The activity log was mixed yesterday as the trading value went up by 3.81 per cent, while the trading volume and the number of deals went down by 13.87 per cent and 9.29 per cent apiece.

A total of 368.8 million shares valued at N10.9 billion were traded in 13,228 deals during the session versus the 428.2 million shares worth N10.5 billion transacted in 14,583 deals on Monday.

Fidelity Bank was the most active stock of the day with a turnover of 47.4 million units worth N867.0 million, Access Holdings traded 28.1 million units for N592.2 million, Zenith Bank sold 23.1 million units valued at N1.2 billion, UBA exchanged 22.0 million units worth N690.5 million, and FCMB transacted 20.8 million units valued at N185.1 million.