As someone who has been following the cryptocurrency market for years and has experience in trading algorithms, I find Rekt Fencer’s claim of making $71,500 using a Bitcoin trading bot built with OpenAI’s ChatGPT in just 10 minutes intriguing but skeptical.
Crypto influencer Rekt Fencer recently unveiled a Bitcoin trading strategy devised using OpenAI’s ChatGPT. However, some users have raised doubts regarding the algorithm’s effectiveness based on its performance.
In simpler terms, trading algorithms aren’t limited to the cryptocurrency world. Instead, they are valuable instruments used in all financial markets to mechanize tasks. The concept hinges on setting up guidelines based on intricate mathematical models, enabling automated trades according to predefined conditions instead of relying on feelings or intuition.
Rekt Fencer is said to have devised a Bitcoin (BTC) trading algorithm and made a profit of $71,500 based on his claims in an X thread posted on April 25. This bot reportedly utilized the Bollinger Bands Indicator available on TradingView for its trading decisions.
I spent ten minutes constructing a Bitcoin trading bot with the assistance of AI prompts on ChatGPT, I personally experienced. The OpenAI tool proved invaluable during this process, as it effectively addressed any coding issues or technical difficulties that arose.
With the help of ChatGPT, I constructed a rudimentary strategy and earned a profit of $71,500 from trading Bitcoin. You too can create this automated trading system in a short amount of time – only ten minutes are required. 🧵: Instructional guide on setting up your AI-powered trading bot right here 🔽
— Rekt Fencer (@rektfencer) April 24, 2024
Users contest Rekt Fencer’s Bitcoin trading bot
Some users questioned the authenticity of the presented data, suspecting that the trader had shared simulated backtesting results instead of actual profits earned from live market transactions. Backtesting refers to the process of testing trading strategies in a controlled simulation environment before implementing them in real market situations.
Critics within the community raised concerns, suggesting that the X thread might have overlooked reporting losses as they focused solely on mentioning profits – a situation seemingly at odds with real-life transactions conducted in the public marketplace.
Experts have noted that designing a trading algorithm is a complex task with significant technical requirements. Artificial intelligence bots like OpenAI might not be perfectly suited for this purpose. Therefore, it’s crucial for users to exercise caution when introducing any automated trading system into their investments and to commit real funds only after thorough consideration.
In simpler terms, within TradingView, that’s a summary of the backtesting results I’m referring to. However, the profit factor of 2.20 during this testing is quite low, and it’s likely that fees were not taken into account in those settings. Creating a trading algorithm is complex and cannot solely rely on retail indicators.
— GP Crypto Chief 🌐⚙️ (@gpcryptochief) April 25, 2024
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2024-04-25 20:34