Discover the Full ChatGPT Trading Strategy that Turns $100 Into $13000! Boost Your Trading Success Today.

In my previous video, I asked Chat GPT to give me a simple trading strategy to turn $100 into ten thousand dollars as quickly as possible. A lot of you guys have shown a massive interest in that video, so I decided to make part two. This time, I will ask Chat GPT to create an advanced trading strategy with the same goal to grow a small trading account fast. The indicators I’m going to be using for this strategy are the money flow index, a 100-period SMA, and a Candlestick pattern. I will also test the strategy 100 times and show the results at the end of the video. For my backtesting, I will use the Trader Reg app. This is currently the best backtester on the market. It is very simple to use, and it gives you all the information you need about your strategy. I will leave a link to it in the description below. Okay, let’s get back to Chat GPT.

Honestly, the response was better than I expected, however, there are still some changes that need to be made to the strategy. So, as I mentioned, the strategy consists of three indicators. Let’s add them to the chart.

For the first indicator, let’s add the money flow index. There are many options out there. I personally recommend this one by Dreams Find. Before I explain how this tool works, let’s change the colors of the line so that we can see them more clearly. For that, we need to open the style and change the plot from black to white. In addition, let’s make the background a bit more visible.

The money flow index is a technical indicator that measures the buying and selling pressure in a particular security or market over a specific time period. It is based on both price and volume data and is used to identify overbought or oversold conditions in a security. The money flow index oscillates between 0 and 100, with a reading above 80 indicating an overbought condition and a reading below 20 indicating an oversold condition.

The next indicator I’m going to add is a smoothed moving average with a length set to 100. Unlike the simple moving average, which gives equal weight to each price point in the time series, the smoothed moving average assigns greater weight to the most recent price points in the series. This means that the smooth moving average reacts more slowly to sudden price changes, resulting in a smoother, less erratic line on a chart. This indicator can be used in various ways. For example, it can help identify the market’s trend when the price is moving above the SMA and the line is sloping upwards, the trend is bullish. Exactly the opposite is true when the trend is bearish. Another way of using SMA is to identify support and resistance levels. When the price approaches the SMA, the line can be a strong reversal point. This way, traders have a chance to enter the market at a discounted price. I find the success rate of the strategy to be very high, especially when combined with other indicators.

Okay, so let’s add the last piece of our strategy, the engulfing candle indicator. An engulfing candle is a type of pattern used in technical analysis to indicate a potential trend reversal. In financial markets, it occurs when a small candlestick is completely engulfed by the next larger candlestick. There are two types of engulfing patterns, bullish and bearish. A bullish engulfing happens when a small red candle is followed by a larger green candlestick that completely engulfs the previous candle. This pattern indicates that the bulls have taken control of the market and that the price is likely to rise. A bearish engulfing occurs when a small green candle is followed by a larger red candlestick that completely engulfs the previous candle. This pattern suggests that bears have taken control of the market and that the price is likely to fall. Every time the indicator spots bullish and bearish engulfing patterns, it prints green and red triangles.

So, what are the rules for the strategy suggested by Chat GPT and how can we improve it? Well, Chat GPT says that we should first identify the trend. The trend is bullish if the price closes above the SMA. During a bullish trend, only long positions can be taken. The next step is to look for candlestick patterns to enter the market. In our case, that pattern is the engulfing candle. Lastly, to confirm a long entry, the money flow index must be above 50, indicating positive sentiment.

I had a quick look at some signals given by this strategy, but unfortunately, a lot of them could have resulted in loss. To fix this, we need to completely change the entry conditions. First of all, we’re not going to be using the money flow index in such a basic way. We need a more advanced approach, which is based on overbought and oversold conditions. In addition, we’ll use the SMA not just to spot the trend, but to find support and resistance as well. So, the rules for a long trade would be as follows:

First, the market must be in an uptrend.
Second, the price must retrace to the SMA. During such a retracement, the candle bar must not close below the line.
Third, the money flow index must become oversold. This is confirmed by a green circle that appears on the indicator.
Finally, a bullish engulfing candle bar must be formed on a chart by the time the money flow index leaves the red zone. If the white line exits the oversold zone before such a candle was formed, the signal becomes invalid. Open a long trade at the close of the prime bar if the conditions are met. Place the stop loss below the swing low and target two times the risk. Once you’ve made half the profit, move the stop loss to the break-even price.

Here is another example: watch how the price finds support at the 100 SMA. The selling pressure decreases as the candlesticks approach the line. At the time of the retracement, the money flow index became oversold. Then the indicator spotted a bullish engulfing pattern.

To take a short position:
First, identify if the current trend is bearish. For that, the price needs to close below the SMA.
Second, wait for the price retracement to the moving average. During the pullback, the money flow index must become overbought.
Then, a bearish engulfing candlestick must be formed. Do not enter the trade if such a candle was formed after the money flow index left the oversold zone. Enter a short trade only if all conditions are met. Place the stop loss above the swing high and target two times the risk. The stop loss should be adjusted to break even once half the profit has been made.

Okay Traders, I believe you have a full understanding of the strategy. Let’s proceed to the backtesting results. So, I tested this strategy on different forex pairs on a one-minute time frame and the results were insane. The initial account was set at $100 and I was risking 5% of the account per trade in order to profit 10%. As a result of 100 trades, the strategy made a 13551.6% profit. By the way, the fees are also included. The setups were found in a span of three months. The strategy’s win ratio is 75%, which is really high, for a risk-reward of 1:2. The maximum drawdown does not exceed 12%. In general, this strategy is very profitable.

You should, however, keep in mind that 5% risk per trade is higher than usual. Normally, it’s not advised to risk more than 2% of the account balance per position. But as the initial goal was to grow a small account quickly, this risk per trade could be appropriate.

Although the strategy has produced these crazy results in the backtesting, it is highly advisable to test it on a demo account for a month before trading live. So, give the strategy a try. I hope it will make you a ton of money. By the way, if you want to learn more high win rate strategies, check out this playlist here.

In conclusion, by using a combination of technical indicators and candlestick patterns, an advanced trading strategy can be developed to grow a small trading account quickly. However, it is important to carefully backtest and demo test any strategy before trading live to ensure its effectiveness and profitability. With the right strategy and risk management in place, traders can potentially achieve significant returns in a short amount of time.