How To Use ChatGPT To Improve Your Trading
Imagine having a team of hundreds, and even thousands, of world-class trading experts, plus their most advanced trading tools, at your side 24 hours a day, 7 days a week.
Sounds like something out of a science fiction movie or book, doesn’t it?
Well, it’s a reality today. And after 44 years in this industry, along with having access to some of the best trading tools, from having a Bloomberg terminal for decades to having the former lead developer of Excel for Microsoft as my head of research, nothing comes close to comparing to ChatGPT’s capabilities, especially with their newest o1 Pro model.
In fact, I’ll go as far as saying ChatGPT o1-Pro has more ALPHA in it, than anything that has ever existed in the financial markets!
AI is here to stay, and AI for traders is in its infancy. Learning how to use AI, and especially ChatGPT, on a professional level will very likely lead to the greatest growth in your trading ever, and in most cases, the results can be seen immediately.
In this series, How To Use ChatGPT To Improve Your Trading, I’m going to put in front of you a number of simple, yet powerful ways to improve your trading.
To begin with today, here is a fairly long, yet only partial, list of what ChatGPT can do for you. In fact, the tools and knowledge available inside GPT surpass a Bloomberg terminal (which costs $30,000 a year) by a substantial amount.
Bloomberg is a great tool, and I attribute a lot of my success to it, especially for the ability to create many quantified trading strategies that still work (backed by quantitative testing) over 20 years later.
ChatGPT, especially the new o1 Pro model, and the soon-to-be-released o3 version, crushes what Bloomberg can do in so many ways.
Whether you’re brand new to AI and ChatGPT for your trading, or if you’ve been using it, as I and many of the traders who have taken my AI classes have, there’s something here for everyone.
Today, I’m going to list a number of the features to give you an idea of how this is the most powerful trading tool ever created.
Then, in the upcoming series, I’ll go further into many so you can begin using it for yourself.
Also, If you’d like to learn even more about this, I’m doing a free trading webinar on Thursday, January 9, at 1 pm ET. I’ll be discussing the overall market, especially AI and Quantum Computing stocks, along with going further into using AI to improve your trading.
Here is a brief list of what AI and ChatGPT can do for you. This list is a microcosm of all the features inside and it should give you a good idea of its power.
No matter if you day trade, swing trade, long-term trade, or you trade stocks, ETF’s, options, futures, crypto and more, there is an abundance of professional knowledge, trading strategies, and trading tools for you to use.
Read through the list, and in the upcoming parts of this series, I’ll go deeper into a number of these, including how I use ChatGPT to build strategies, analyze my positions, give me trading ideas along with continuously making me smarter with my trading.
Even after 44 years of doing this, having authored a number of trading books, and also winning awards along the way, my trading knowledge and strategy development has exponentially grown over the past 24 months because of AI and GPT.
I can assure you, it will do the same for you.
Here’s a sample portion of the list. I’ll go much deeper into many as we move ahead in this series:
- Strategy Development & Brainstorming (ChatGPT excels at this)
- Rapid Technical Pattern Analysis (professional level chart reading and analysis, plus generating trading suggestions)
- Customized Indicator Creation
- Automated Backtesting Script Generation
- Advanced Options Strategy Generation
- Sentiment Analysis on Tweets & News
- Crypto Project Whitepaper Summaries
- Headline Sensitivity Analysis
- Optimal Stop-Loss & Take-Profit Levels
- Trading Journal Assistant (you can create and customize one that exceeds anything currently available on the marketplace)
- Automated Watchlist Generation
- Sector/Industry Rotation Analysis
- Customized Market Insights Briefings
- Correlation Breakdown
- “Smart Filter” for Scans
- Event-Driven Trade Ideas
- Regulatory Filing Summaries
- Unusual Volume Detection
- Expert-Style Q&A on Market Topics
- Code Review & Optimization
- Multi-Timeframe Analysis
- Risk Parity Modeling
- Intraday Pattern Recognition
- NLP-Driven Macro Trend Analysis
- High-Level Thematic Investing Insights
- Customized Position Sizing Models
- Scenario Stress Testing
- Cross-Market Arbitrage Ideas
- Momentum Stock Alerts
- ETF Construction or Basket Trading
- Tail Risk Hedging Strategies
- Option Greeks Analysis
- Cross-Asset Seasonality
- Automated Pair Trading
- Live Support & Resistance Mapping
- Event-Flow Trading
- In-Depth Sentiment & Social Analytics
- Coding Machine Learning Indicators
- Price Action Explanation
- Crypto On-Chain Data Breakdown
- Hedge Strategy Optimization
- NLP-Based Trading Education
- Market Microstructure Analysis
- Automated Beta Weighting & Hedge Ratio Calculation
- Special Situations Scanner (Spin-Offs, Reverse Splits, Rights Offerings)
- Deep-Dive Algorithmic Trading Strategy Dissection
- Whale Watching: Large Institutional Order Flow Insights
- Voice Commands & Analysis (no more typing!)
- Crypto Derivatives Funding Rate Analysis
- Real-Time Anomaly & Outlier Detection
- Advanced Sector Correlation & Hedge Tactics
- Thematic Portfolio Construction
- Swing Trading “Pullback & Continuation” Analysis
- Long-Term Momentum Factor Screening
- Thematic Crypto Basket for Long-Term Holds
- Options LEAPs Strategy Generation
- Global Macro ETF Rotation
- Multi-Week Sector Momentum Pair Trades
- Geopolitical Risk Assessment for Holdings
- Institutional Accumulation Detection (Weekly Charts)
- Covered Call & Cash-Secured Put Scheduler
- Thematic Options Spreads
- ETF “Momentum + Thematic” Hybrid
- IPO Lockup Expiration Strategy
- Event-Focused Thematic Investing
- Quarterly Hedge Adjustment _ Risk Management
- Swing Trading “Extreme Volume Spike” Filter
- Relative Rotation Graph (RRG) for Swing Traders
- “World Tour” Thematic Rotation – Likely Alpha Here
- Personal Mentor – Interactive Q&A & Trading Concept Mastery (this one is endless!)
- Personalized Quizzes & Progress Checks
- Academic Paper & Research Report Summaries
- Interactive Trading Books Tutorials and Strategy Creation (one of my favorite)
- “Teach-Back” Sessions
- In-Depth Book Chapter Analysis
- Practical “How to Trade This” Tutorials
- Multi-Market Education (at all levels) for Equities, Options, Futures, Crypto, FX, and more.
- “Explain It to Me at 3 Levels” Feature (Beginners, Intermediate, Professional)
- Advanced Strategy Refinement
- Development for Trading Teams
- Quant & ML Pipeline Teaching
- Trading Psychology & Mindset Coaching (GPT goes deep here – further than anything I’ve seen available in the marketplace)
- Contrarian & Sentiment Analysis Lessons
- Math & Statistics Tutor for Finance
- Code Generation & Debugging (Educational Mode)
- Interactive Case Studies & “What-If” Scenarios
- Historical Backtest Explanation
- Multi-Day Gap & Go (Extended Timeframe)
- Risk Analysis from Beginner to PhD Quant Hedge Fund Level
- Thematic Sector Seasonality
- Currency Pair Swing Analysis
- Seasonality Over Multi-Week Periods
- Longer-Term Economic “Regime” Tracking
- Long-Term Trend-Following Signal
- Portfolio Factor Exposure Analysis
- Insider Trading Trends (Multi-Month)
- Long-Term Crypto “HODL” Analysis
- Swing Trading Gaps on Weekly Charts
- Defensive Portfolio Construction for Extended Bear Phases
- Weekly or Monthly “Relative Strength Rotation”
- Multi-Week Mean Reversion in Commodity Markets
- Multi-Quarter Earnings Season Strategy
- Mid-Term Swing Combination Indicators
- Position Sizing for Multi-Day Swing Trades
- Portfolio-Level Volatility Targeting
- Multi-Week RSI Mean Reversion
- “Big Picture” Macro Data Sentiment
- Chat-Based Debugging & Diagnostics for Trading Systems
- Automated Cycle Analysis
- Multi-Month Breakout Projections
- Synthetic Short Positioning via Inverse Instruments
- Automated Portfolio Rebalancing Logic
- Contract Roll Analysis for Futures
- Target Price Heatmap Creation
- Delta-Neutral Strategy Proposals
- Behavioral Stop Placement Analysis
- Automated Walk-Forward Optimization
- Intermarket Analysis for Confirmation
- Price-Volume Footprint Synthesis
- Real-Time Implied Volatility Breakout Detection
- Institutional Flow Parsing (Dark Pool Prints)
- Special Options Order Flow Filtering (Sweeps, Large Blocks)
- Elevated Short Volume Detector
- Intraday Event-Driven Options Strategies
- Newsflow Speed Arbitrage
- Volatility Surface Exploration (Multi-Asset)
- Macro Data Release Forecasting
- Alternative Data Integration
- Personal Behavioral Finance Checker
- Multi-Factor Alpha Generation
- Momentum Shifts Detection via Volume-Weighted Metrics
- Crowd-Funded Research Aggregator
- Whale Transactions on Blockchain (For Crypto)
- Systematic Trading Style Matching (it will customize this for you after asking you a series of questions)
- Sector & Industry Macro Shifts (timely, especially now)
There’s obviously a tremendous amount here and this is literally just scratching the surface.
One of the most exciting aspects to me can be seen in #70-85. The trading knowledge inside ChatGPT is immense and it literally exceeds PhD-level quant hedge fund knowledge if you want to go that far.
You can start anywhere, whether you’re looking to learn a trading topic that’s brand new to you, all the way up to expanding your knowledge to the highest level available.
For me, I’ve learned more about trading, and especially high-level strategy development, in the past two years because of AI (especially ChatGPT) than I have in my previous 42 years of doing this professionally.
I can confidently say it can do the same for you, as long as you have the proper prompting knowledge, along with a burning desire to become smarter, better, and potentially more profitable (isn’t that the name of the game?).
Look for me to go deeper into many of the features mentioned above in my upcoming issues of the Trading Lesson of the Day.
Also, if you’re looking to learn how to use AI to Build High-Performing Trading Strategies, join me at Thursday’s webinar. It starts at 1 pm and you can register for it below at no cost.
For Every Issue of Larry Connors’ Trading Lesson Of The Day, Click Here.
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