Trading Strategy Creation
Last updated
Last updated
We'll now guide you through using AI to create effective TradingView trading strategies.
ChatGPT Plus Membership:
Cost: $20 per month.
Benefits: Generates Pine Script code with fewer mistakes. Subscribe for one month to set up your strategies, and reactivate only when you need to make changes.
Alternative Free AI Option:
groq.com:
Model: Llama3-70b-8192.
Note: This option is free but tends to produce more errors compared to ChatGPT Plus.
TradingView strategies use Pine Script as their language framework. We'll leverage ChatGPT to create the Pine Script code. Ensure you have ChatGPT 4o activated, as it's the most powerful model.
Copy the Appropriate Pine Script Template:
For Thorough Backtesting: Copy the "Pinescript Template_Testing" document.
For Implementing Your Final Strategy: Copy the "Pinescript Template_Main" document.
It is best to start with the testing template to thoroughly backtest your strategy. The next steps in this guide will be written as if you used the testing template.
Choose Your AI Tool:
Use ChatGPT 4o (requires ChatGPT Plus membership) or groq.com (free option with Llama3-70b model).
Ensure you have access to ChatGPT Plus or groq.
Input the Text Prompt:
Input the following text:
Paste the "Pinescript Template_Testing" after the above prompt.
Replace the (input_strategy_variables) with your strategy specification
Example Strategy Specification:
For simplicity: "when stochastic and RSI are below 30, buy; and when stochastic and RSI are above 70, sell."
Generate the Code:
Click the arrow on the right of the message box to start generating the code.
Once complete, copy all of the code generated.
Open Pine Editor in TradingView:
Log in to TradingView.
At the bottom of the screen, click on "Pine Editor."
Create a New Strategy:
Click on "Open" in the Pine Editor.
Select "New Strategy" from the dropdown menu.
Remove any default code in the new script and paste the generated code from ChatGPT or groq.
Name and Save the Strategy:
Click on "Untitled script" to rename your strategy.
Click "Save," then "Add to Chart." This will automatically open the backtesting panel for the token and timeframe you're currently on.
Visit DexTools:
Open your browser and navigate to DexTools.
Type the name of the token you want to trade into the search bar.
Select the Pool:
Choose the appropriate pool for your token.
On the left side of the screen, locate and click on the pair address to copy it to your clipboard.
Search for the Pair Address in TradingView:
Go to TradingView.
Click the search icon on the top left of the screen.
Paste the pair address into the search bar.
Select the chart title that ends in .USD. This ensures you are using the USD pair, which avoids potential issues with WETH charts.
View Backtest Results:
Make sure you are backtesting the tokens you wish to automate trading. The backtest results for that token will be displayed.
Use the testing script to change the backtest start and end time to determine if it's recently profitable too. The following section of the user guide will go into more detail on back testing.
Troubleshooting:
If the strategy doesn’t generate any orders, consider the following adjustments:
Token Newness: The token may be new.
Strategy Strictness: The strategy might be very strict.
Backtest Date Range: The backtest date range could be too short or not configured correctly.
Adjust Timeframes for More Trades:
Smaller timeframes usually generate more trades. For example, switching from a 1-day to a 1-hour timeframe might increase the number of trades.
No Orders Generated: If no orders are generated, it might be due to the token's novelty, the strategy’s strictness, or an incorrectly configured backtest date range. Adjust the parameters and timeframe accordingly.
Adjusting Timeframes: Smaller timeframes typically open up more trades, which can make the strategy more profitable.
By following these detailed steps, you can create effective TradingView trading strategies using AI.
Check the next section of the user guide for better detail into backtesting.
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