PriceActionGPT

Author

Alex Butterfield
November 20, 2023

ChatGPT has now launched the ability for users to upload their own custom GPT’s dedicated to performing certain tasks. A user on Reddit created his own called “PriceActionGPT” and its insanely cool!

Let’s take a look at how it works…

As you guys can see I showed my own market breakdown above for 5 Different pairs. Let’s take the one from the EUR/USD and see what PriceActionGPT thinks is going on.

In general I’d say this is pretty interesting! Definitely worth taking a look at, especially for newer traders!

Reddit Question of the Day

Is profitability in trading just a matter of having a strict trading strategy?

“When I speak of a strict strategy, I mean a certain number of fixed conditions that will put us in a position if they are all met.

I've been in the trading business for over a year now, always on the lookout for profitability. I've learned how prices work, and gained some market experience in technical analysis and position-taking.

In conclusion, I've come to understand that profitability in trading boils down to strictly applying a strategy (a set of conditions) that you've backtested on the chart to estimate its profitability,

Am I Right?

If that's the case, then there's no point in analyzing a chart and understanding the price in order to be profitable, if all we have to do is apply a strategy that's estimated to be profitable, whether it's our own or someone else's? I can't get used to the idea that profitability doesn't come from actual experience and analytical ability, but from applying a profitable strategy.”

Picture trading like trying to bake the perfect cake. You've got this recipe (your trading strategy) that you've tested a gazillion times (backtesting), and it turns out great in your kitchen (historical data).

But what if you're suddenly baking in a kitchen on the moon (the ever-changing market)? That's where your chef's instincts (your analysis and experience) come in handy. You can't just rely on the recipe; you've got to tweak the baking time, maybe juggle the ingredients a bit. That's the art in the science of trading!

Now, imagine if all the bakers in the world were replaced by baking robots (trading bots). Sure, they follow recipes to a T, but they can't taste or smell. They wouldn't know if the market kitchen smells a bit off today (market sentiment changes) or if the ingredients have changed slightly (economic or political shifts). That's where you, the master chef with a keen nose and a discerning palate, have the edge. You're not just dumping ingredients and hoping for the best; you're tasting, sniffing, and adjusting as you go.

In trading, just like in baking, there's a dash of art mixed in with the science. It's not just about slapping a strategy on the chart and watching the dough rise. You've got to knead it, feel it, and sometimes throw it against the wall to see if it sticks (figuratively speaking, of course). And let's face it, there's a bit of fun in the unpredictability, a thrill in the chaos. It's like trying to dance the tango while solving a Rubik's Cube – challenging, but oh-so-satisfying when you get it right.

TL;DR
A good strategy is your recipe book, but your market experience and analytical skills are your secret ingredients. Mix them well, and you might just bake up some profitable treats! But remember, in the kitchen of trading, expect a few burnt cakes along the way. That's just part of the fun!

Regards,

Alex Butterfield
Founder & CEO, TraderEdge

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