Back-testing Crypto Trading Strategies With ChatGPT 40

[TruthNotBS]

I took the historical data for ChainLink coin's (you can do this with any coin) daily 24H high and low from here:

Chainlink Price History and Historical Data | CoinMarketCap

Check the Chainlink price history from each day since it was listed on CoinMarketCap. Fiat currency selection. LINK closing prices. Daily, weekly and monthly price data. Free download available.

coinmarketcap.com

I started with a three-month historical analysis, uploading the CVS file to the AI. The parameters of the back-test are the following:

• I enter a trade-position between the last 24h high-price and low-price (I place a limit order at that price and wait for the market to hit that price).
• With $2000
• I hold the position until the price goes up 3%.
• I place a stop-loss of 20% below my buying price (A 20% stop loss means that when the market price goes down 20% below the buying price, you sell, exiting the trade).
• Due to lack of data, I was unable to determine how many times within 24 hours, prices fluctuated up and down past my buying entry price-point, triggering my 3% profit margin, so I told the AI I would only enter a trade once daily, within 24 hours.

These are the results of the test:

• Total trading days: 60
• Days with successful trades (3% profit): 36
• Days with no triggered trades: 24
• No days resulted in a loss (stop-loss was not triggered).
• Final account balance: $5,796.56
• Total profit percentage over the three months: 189.83%

Not bad huh? I'm now planning to code a trading robot ("bot") that automates the above strategy and runs back-tests on whichever coin you're interested in. I ran the back-test with Bitcoin and other crypto-coins, and it's always a winner. You're making over 100% profit in just three months. The profits compound, because you're leaving the profits in the account and you're trading with it. So your profits and trading account grow exponentially. For example, here is a year of ChainLink coin historical data analyzed:

• Total days analyzed: 364
• $2000 initial investment.
• Days with successful trades (3% profit): 156
• Days with no triggered trades: 208
• No days resulted in a loss (stop-loss was not triggered).
• Final account balance: $201,204.20
• Total profit percentage over the year: 9,960.21%.

This is by simply entering the trade at the price between the fixed 24h high and low, applying the parameters that I mentioned earlier. This is a "simple-stupid" strategy, but without a trading-bot, it would require way too much time and effort, monitoring the market and manually managing the process. With a bot, it's all automated. ChatGPT now has the "pro" version, at $200 monthly, providing unlimited access to their new "01" AI, which can code anything you want, including trading robots. I'm upgrading my subscription from $20 to the pro today and I'm going to start working on the trading bot. If anyone is interested in this, just let me know and you can become one of the first beta-testers, allowing you to get my trading bot for free. All I ask is that if you make a lot of money, provide me with a good review and testimonial (and maybe a few bucks hehehe..I'm just joking, your honest review is all I want).

 

[TruthNotBS]

Heads up. The above figures didn't factor in the trading price or overhead. The actual results, when factoring in the trading fees from Coinbase, are less:
To incorporate Coinbase's trading fees into the previous simulations, we'll apply the maker-taker fee model as outlined by Coinbase. For simplicity, we'll assume each trade incurs the highest taker fee of 0.60%, as limit orders can sometimes be filled immediately, classifying them as taker orders.

Coinbase Help Center

Three-Month Simulation with Fees:

• Total Days Analyzed: 60
• Days with Profitable Trades (3% gain): 36
• Days with No Triggered Trades: 24
• Days with Losses (stop-loss triggered): 0
• Final Account Balance: $5,614.85
• Total Profit Percentage: 180.74%

One-Year Simulation with Fees:

• Total Days Analyzed: 364
• Days with Profitable Trades (3% gain): 156
• Days with No Triggered Trades: 208
• Days with Losses (stop-loss triggered): 0
• Final Account Balance: $194,548.80
• Total Profit Percentage: 9,627.44%

Still great.

 

[Andrew_Jackson_FTW]

I took the historical data for ChainLink coin's (you can do this with any coin) daily 24H high and low from here:

Chainlink Price History and Historical Data | CoinMarketCap

Check the Chainlink price history from each day since it was listed on CoinMarketCap. Fiat currency selection. LINK closing prices. Daily, weekly and monthly price data. Free download available.

coinmarketcap.com

I started with a three-month historical analysis, uploading the CVS file to the AI. The parameters of the back-test are the following:

• I enter a trade-position between the last 24h high-price and low-price (I place a limit order at that price and wait for the market to hit that price).
• With $2000
• I hold the position until the price goes up 3%.
• I place a stop-loss of 20% below my buying price (A 20% stop loss means that when the market price goes down 20% below the buying price, you sell, exiting the trade).
• Due to lack of data, I was unable to determine how many times within 24 hours, prices fluctuated up and down past my buying entry price-point, triggering my 3% profit margin, so I told the AI I would only enter a trade once daily, within 24 hours.

These are the results of the test:

• Total trading days: 60
• Days with successful trades (3% profit): 36
• Days with no triggered trades: 24
• No days resulted in a loss (stop-loss was not triggered).
• Final account balance: $5,796.56
• Total profit percentage over the three months: 189.83%

Not bad huh? I'm now planning to code a trading robot ("bot") that automates the above strategy and runs back-tests on whichever coin you're interested in. I ran the back-test with Bitcoin and other crypto-coins, and it's always a winner. You're making over 100% profit in just three months. The profits compound, because you're leaving the profits in the account and you're trading with it. So your profits and trading account grow exponentially. For example, here is a year of ChainLink coin historical data analyzed:

• Total days analyzed: 364
• $2000 initial investment.
• Days with successful trades (3% profit): 156
• Days with no triggered trades: 208
• No days resulted in a loss (stop-loss was not triggered).
• Final account balance: $201,204.20
• Total profit percentage over the year: 9,960.21%.

This is by simply entering the trade at the price between the fixed 24h high and low, applying the parameters that I mentioned earlier. This is a "simple-stupid" strategy, but without a trading-bot, it would require way too much time and effort, monitoring the market and manually managing the process. With a bot, it's all automated. ChatGPT now has the "pro" version, at $200 monthly, providing unlimited access to their new "01" AI, which can code anything you want, including trading robots. I'm upgrading my subscription from $20 to the pro today and I'm going to start working on the trading bot. If anyone is interested in this, just let me know and you can become one of the first beta-testers, allowing you to get my trading bot for free. All I ask is that if you make a lot of money, provide me with a good review and testimonial (and maybe a few bucks hehehe..I'm just joking, your honest review is all I want).

Is there a way to do this on platforms like Robinhood. Where you can set up a stop by with a stop sell at the same time?

 

[TruthNotBS]

Is there a way to do this on platforms like Robinhood. Where you can set up a stop by with a stop sell at the same time?

What do you mean by a "stop by" (stop buy?). There is a stop-loss, that way if the prices go below your purchasing price, you can exit the trade. You can set the stop-loss at 5% below your current price position or at 20%. I sometimes prefer to place it long or far below my current position, especially in a volatile market with fluctuating prices, to recover without exiting my position. It would be best if you did this, especially in a bullish market that is gradually moving up. You look at the charts and see if for the last week, month, three months..etc, the market is bullish (moving up). You also look at the daily high and low and trading volume.

I'm going to create a simple bot that automates my strategy, using the coinbase API. It will also allow you to backtest the strategy with different coins. You will also be able to modify my strategy, in order to improve it, maybe you'll create a better strategy. I find that at 2% above the last low, I set a limit order. Once the limit order is fulfilled, the bot sets a "profit order" of 3%. I hold that position until the price is reached or triggered. Then the bot sets another limit order 2% above the low that is being displayed by coinbase. Wax on, wax off, rinse and repeat. You are moving with the market, as the high and low changes, you're moving up or moving down. The 20% stop loss below your position protects you from losing too much of your money, allowing you to recover.

My bot will be simple, no fancy algorithms or artificial intelligence, it's more of an automaton, automating a simple process, requiring simple math and instructions. Always setting the limit order at whatever % you want above the current displayed low on Coinbase's interface/dashboard. Then waiting for the limit order to be fulfilled and setting the profit order at 3% or whatever you want. I don't exit the trade until I trigger the profit order, then I repeat the process, over and over again.

All of my backtests, have proven successful so far. If you're going to try this strategy, do it with ChainLink, or a similar coin, that is well known, has a good market cap, trading volume. Never trade with coins worth 0.000456. Those are trash meme coins. Trade with Bitcoin, Link/Chainlink, ETH..I have a list of good ones. Look for bullish markets, going up. Even if the chart tells you the market went down in the last 24 hours, if you see that it is going up in the weekly chart, or the monthly chart, three month chart..etc, then it's a bullish market. It's steadily going up, even if it went down today, it is a bullish market, going up.

That doesn't mean you can't trade with a bear market with prices going down, but just make sure it's a stable, well known coin. That way the prices are going down gradually, allowing you to still make a profit off of the daily "ups and downs"/fluctuations in prices. Let the robot handle it and just go about your day. Check in once a day, to see how it's doing. Set some alerts. Then enjoy your life, don't be like these day traders, sitting in front of the computer all day, pulling their hair.

 

[Andrew_Jackson_FTW]

What do you mean by a "stop by" (stop buy?). There is a stop-loss, that way if the prices go below your purchasing price, you can exit the trade. You can set the stop-loss at 5% below your current price position or at 20%. I sometimes prefer to place it long or far below my current position, especially in a volatile market with fluctuating prices, to recover without exiting my position. It would be best if you did this, especially in a bullish market that is gradually moving up. You look at the charts and see if for the last week, month, three months..etc, the market is bullish (moving up). You also look at the daily high and low and trading volume.

I'm going to create a simple bot that automates my strategy, using the coinbase API. It will also allow you to backtest the strategy with different coins. You will also be able to modify my strategy, in order to improve it, maybe you'll create a better strategy. I find that at 2% above the last low, I set a limit order. Once the limit order is fulfilled, the bot sets a "profit order" of 3%. I hold that position until the price is reached or triggered. Then the bot sets another limit order 2% above the low that is being displayed by coinbase. Wax on, wax off, rinse and repeat. You are moving with the market, as the high and low changes, you're moving up or moving down. The 20% stop loss below your position protects you from losing too much of your money, allowing you to recover.

My bot will be simple, no fancy algorithms or artificial intelligence, it's more of an automaton, automating a simple process, requiring simple math and instructions. Always setting the limit order at whatever % you want above the current displayed low on Coinbase's interface/dashboard. Then waiting for the limit order to be fulfilled and setting the profit order at 3% or whatever you want. I don't exit the trade until I trigger the profit order, then I repeat the process, over and over again.

All of my backtests, have proven successful so far. If you're going to try this strategy, do it with ChainLink, or a similar coin, that is well known, has a good market cap, trading volume. Never trade with coins worth 0.000456. Those are trash meme coins. Trade with Bitcoin, Link/Chainlink, ETH..I have a list of good ones. Look for bullish markets, going up. Even if the chart tells you the market went down in the last 24 hours, if you see that it is going up in the weekly chart, or the monthly chart, three month chart..etc, then it's a bullish market. It's steadily going up, even if it went down today, it is a bullish market, going up.

That doesn't mean you can't trade with a bear market with prices going down, but just make sure it's a stable, well known coin. That way the prices are going down gradually, allowing you to still make a profit off of the daily "ups and downs"/fluctuations in prices. Let the robot handle it and just go about your day. Check in once a day, to see how it's doing. Set some alerts. Then enjoy your life, don't be like these day traders, sitting in front of the computer all day, pulling their hair.

There’s a lot here to digest. But it clearly sounds like you know what you’re doing. And you have a lot more knowledge about the market compared to me.

Is your bot going to be able to make buys and sells automatically without you having to do it?

in the past month or so, I’ve missed out on profit . meaning that I’ve seen numerous coins I own jump up by about 10 or 20% in a day only need to lose a goof chunk of profit eventually . With exception to XRP what has been on a hell of a run.

My new strategy(kind of like yours?) for examples let’s say a coin goes from $.50 up to $.60. I can sell it at $.60 take profit and then immediately set a stop buy at about 65 or $.70. This way I don’t miss out on a huge potential profit if there is a big jump at any given time… I will miss out on some potential profit but I’m protecting myself against a major correction

but this strategy also allows me to buy the same coin if it goes down… which of course allows me to get more of the coin and potentially more profit when the coin goes up.

Altogether, most of my coins are up in the past month….but my point is that I could’ve made a lot more money if I sold at high points and then bought at a low
point like you’re talking about. There’s probably been about six or seven profit jumps that I missed out on. On Robin hood there’s about a half a point spread when you buy or sell a coin, but it’s not really significant if you consider the big picture I suppose.


On coins worth below .0005 I kind of have to disagree ….and raise a point that a lot of the coin experts believe that coins like Shiba coin which is worth around this type of price…. can experience a big boost.

I do like Dogecoin, which is worth around $.45 right now. There are predictions that the coin can reach anywhere from three dollars to $16 a coin. Especially with people like Elon Musk sort of pumping up the coin.

I like etherum and Solana… I’m also invested into micro strategy….. which is supposed to kind of correlate with bitcoin.

 

[TruthNotBS]

There’s a lot here to digest. But it clearly sounds like you know what you’re doing. And you have a lot more knowledge about the market compared to me.

Is your bot going to be able to make buys and sells automatically without you having to do it?

in the past month or so, I’ve missed out on profit . meaning that I’ve seen numerous coins I own jump up by about 10 or 20% in a day only need to lose a goof chunk of profit eventually . With exception to XRP what has been on a hell of a run.

My new strategy(kind of like yours?) for examples let’s say a coin goes from $.50 up to $.60. I can sell it at $.60 take profit and then immediately set a stop buy at about 65 or $.70. This way I don’t miss out on a huge potential profit if there is a big jump at any given time… I will miss out on some potential profit but I’m protecting myself against a major correction

but this strategy also allows me to buy the same coin if it goes down… which of course allows me to get more of the coin and potentially more profit when the coin goes up.

Altogether, most of my coins are up in the past month….but my point is that I could’ve made a lot more money if I sold at high points and then bought at a low
point like you’re talking about. There’s probably been about six or seven profit jumps that I missed out on. On Robin hood there’s about a half a point spread when you buy or sell a coin, but it’s not really significant if you consider the big picture I suppose.


On coins worth below .0005 I kind of have to disagree ….and raise a point that a lot of the coin experts believe that coins like Shiba coin which is worth around this type of price…. can experience a big boost.

I do like Dogecoin, which is worth around $.45 right now. There are predictions that the coin can reach anywhere from three dollars to $16 a coin. Especially with people like Elon Musk sort of pumping up the coin.

I like etherum and Solana… I’m also invested into micro strategy….. which is supposed to kind of correlate with bitcoin.

Is your bot going to be able to make buys and sells automatically without you having to do it?

Yes, that's key. You can set the parameters for it and then let it trade for you. It's not making any predictions based on indicators or real-time data, as some AI bots do, but rather it simply follows your instructions.

in the past month or so, I’ve missed out on profit . meaning that I’ve seen numerous coins I own jump up by about 10 or 20% in a day only need to lose a goof chunk of profit eventually . With exception to XRP what has been on a hell of a run.

If you had the bot running, you would've made 10% that day. Do you have any alerts?

My new strategy(kind of like yours?) for examples let’s say a coin goes from $.50 up to $.60. I can sell it at $.60 take profit and then immediately set a stop buy at about 65 or $.70. This way I don’t miss out on a huge potential profit if there is a big jump at any given time… I will miss out on some potential profit but I’m protecting myself against a major correction

but this strategy also allows me to buy the same coin if it goes down… which of course allows me to get more of the coin and potentially more profit when the coin goes up.

Altogether, most of my coins are up in the past month….but my point is that I could’ve made a lot more money if I sold at high points and then bought at a low
point like you’re talking about. There’s probably been about six or seven profit jumps that I missed out on. On Robin hood there’s about a half a point spread when you buy or sell a coin, but it’s not really significant if you consider the big picture I suppose.


On coins worth below .0005 I kind of have to disagree ….and raise a point that a lot of the coin experts believe that coins like Shiba coin which is worth around this type of price…. can experience a big boost.

I do like Dogecoin, which is worth around $.45 right now. There are predictions that the coin can reach anywhere from three dollars to $16 a coin. Especially with people like Elon Musk sort of pumping up the coin.

I like etherum and Solana… I’m also invested into micro strategy….. which is supposed to kind of correlate with bitcoin.

In my strategy, I just enter a position near the daily low that is displayed by Coinbase. And as I mentioned in my last post, I will let the robot just run and execute the plan. Due to compounding the profits, and reinvesting the money into my account, I can make a fortune. Staying near the daily low, in a bullish market is the best. Just keep your position there, until the price triggers and the bot executes the process.

 

[Andrew_Jackson_FTW]

Yes, that's key. You can set the parameters for it and then let it trade for you. It's not making any predictions based on indicators or real-time data, as some AI bots do, but rather it simply follows your instructions.




If you had the bot running, you would've made 10% that day. Do you have any alerts?



In my strategy, I just enter a position near the daily low that is displayed by Coinbase. And as I mentioned in my last post, I will let the robot just run and execute the plan. Due to compounding the profits, and reinvesting the money into my account, I can make a fortune. Staying near the daily low, in a bullish market is the best. Just keep your position there, until the price triggers and the bot executes the process.

I had the notifications off on Robinhood so I wouldn’t check my phone all the time. But now I turned them back on and I suppose I will check them periodically.

How do you apply a buy bot to a site like Robinhood or Coinbase?

 

[TruthNotBS]

I had the notifications off on Robinhood so I wouldn’t check my phone all the time. But now I turned them back on and I suppose I will check them periodically.

How do you apply a buy bot to a site like Robinhood or Coinbase?

They have crypto trading bots like this: Bitsgap.

Here is the Robinhood API:

Robinhood

docs.robinhood.com

Or you can code it yourself. I prefer to code it myself, and keep it simple stupid. It's going to take me a few months, but I'm going to code a bot using python, that does everything I mentioned earlier. Buying and selling for me, at the right price, at the right time, with some other simple parameters like the stop loss..etc. Nothing complicated.

 

[CrusaderFrank]

Today I started looking at Stella XLM

Your system sounds compelling

 

[TruthNotBS]

Today I started looking at Stella XLM

Your system sounds compelling

According to all of my backtests with real historical data, I was always in the money. But this system requires automation, or you're going to be monitoring the market too much, waiting to do it all manually. You need a bot: Bitsgap. I'm still not done coding my personal bot, that I will eventually release to the market, once I beta-test it and make some money trading with it. Bitsgap already has several bots.

A good thing about bitsgap is that you can use their demo account and trade in real-time with the real market, with fake-money. Play money. So you can test my strategy out without risking a penny. I would do it: Bitsgap . I don't want to pay an extra subscription for Bitsgap, so I'll just code the bot myself using ChatGPT 01. I'm paying $200 monthly for ChatGPT 01 Pro. I don't want to buy another subscription until I'm rich. Then it won't matter.

 

[Andrew_Jackson_FTW]

They have crypto trading bots like this: Bitsgap.

Here is the Robinhood API:

Robinhood

docs.robinhood.com

Or you can code it yourself. I prefer to code it myself, and keep it simple stupid. It's going to take me a few months, but I'm going to code a bot using python, that does everything I mentioned earlier. Buying and selling for me, at the right price, at the right time, with some other simple parameters like the stop loss..etc. Nothing complicated.

I’m a total software newbie. So even that looks complicated for me lol

But I’m OK with holding onto my coins long-term or the other idea of simply selling it after a 5-15%profit and then he immediately putting in a stop by. The stop buy will automatically trigger a buy anyway in a 24 hour market .

 

[mamooth]

Crypto is in a bubble now, so any strategy will appear to work.

It's similar to how the dot.com boom made everyone think they were an investment genius.

You want to make money? Sell before the bubble pops.

 

[Dr.Know]

I avoid Coinbase like the plague. This smells like an AD for a trading bot, book or course.