ChatGPT is a language AI created by OpenAI that uses a machine learning technique called reinforcement learning from human feedback, or RLHF to converse with humans. ChatGPT can answer questions about a broad range of topics and is best used to analyze vast amounts of data within seconds. ChatGPT can provide summaries of articles and reports, as well as definitions of concepts from a variety of disciplines. 

In financial markets, ChatGPT can be used for financial summaries and backtesting, as the AI may have difficulties with complex trading strategies involving moving averages and oscillators. 

There are a number of ways to approach ChatGPT to get some valuable information from the AI, but users should be ready for some trial and error along the way. 

For first-time users, ChatGPT may seem like an AI chatbot that has very little use for trading strategies and financial advice in general. However, there are ways of getting around these hurdles by avoiding some common mistakes made by users when interacting with the chatbot.

Understanding these key points can help users avoid the bulk of the trial-and-error phase and get to the desired answers faster with ChatGPT.

Don’t - Ask ChatGPT To Predict The Market

The most common mistake traders make when asking ChatGPT about Forex strategies is specifically that - asking. It is important to understand that ChatGPT is a language model that was not designed for a financial analyst or assistant. 

Direct questions that involve the AI’s opinions and forecasts for particular markets are unlikely to yield satisfactory results. 

For example, asking ChatGPT to provide a forecast for the Forex market, this is what the AI answers:

Don’t - Ask ChatGPT About Expert Opinions

Another important factor to consider when talking to ChatGPT is that the AI has an information cutoff period, which means that the chatbot does not have access to real-time information and can only analyze links to specific articles that are in its database. Even in such cases, ChatGPT can only provide a summary of the text included in the article, without considering the context of the data. Therefore, ChatGPT is unlikely to answer questions regarding analysts’ perspectives and expert opinions, as the AI does not have access to up-to-date information, nor can it specify the data provided by each expert. 

For example, if we ask ChatGPT to describe what experts think about the USD/EUR currency pair, the chatbot will provide an inconclusive answer, such as this:

Don’t - Ask ChatGPT To Pick Assets For You

As already mentioned above, asking ChatGPT for direct financial advice is next to useless. The same goes for specific investment picks. Asking ChatGPT to provide a Forex pair that will result in profitable trading will bear no fruit. These are the limitations of the AI, which serves to avoid giving financial advice, as it understands that investments and trading can be very risky and may result in substantial losses for the users. 

For example, let’s ask ChatGPT to pick a Forex pair to buy right now:

As we can see, ChatGPT dodges all questions that it views as attempts to solicit financial advice. While declining to give an answer, ChatGPT does provide a short guideline for responsible trading and the multitude of factors that need to be considered before buying a particular currency pair. 

Now that we know what to avoid when asking ChatGPT to provide a coherent Forex strategy, we can move on to questions that have a higher chance of generating a favorable response. For example, we can ask ChatGPT to describe a hypothetical profitable Forex trading strategy, which we can build upon further. 

Do - Ask ChatGPT To Describe Hypotheticals

A good way of dodging ChatGPT’s refusals to provide something resembling financial advice is to ask the chatbot to generate a hypothetical scenario/strategy. For example, this is what the AI answer when asked to provide an example of a profitable Forex trading strategy:

As we can see, ChatGPT did provide a hypothetical trend trading strategy that may have the potential to be profitable. However, the strategy is still quite vague and difficult to implement, so we can ask the AI for more specifics in the next step. 

Do - Ask ChatGPT To Expand On Previous Answers

When a conversation with ChatGPT is going in the desired direction, it is important to ask the AI to expand on its previous answers and provide more specific answers. In this case, we can ask the AI to add a simple moving average (SMA) to the provided strategy:

As you see, ChatGPT provides an answer that is much closer to a coherent Forex trading strategy. We can go even further and ask the AI to write up the MQL5 code that would incorporate the SMA into the strategy. 

Do - Ask ChatGPT To Write Code

ChatGPT can be very useful when simple lines of code are needed. In our case, we asked the AI to write MQL5 code that integrates the 200-period moving average into the aforementioned Forex trading strategy:

As seen above, ChatGPT has successfully provided the code necessary to implement the Forex trading strategy to use in practice. The AI has also provided a brief description to make it easier for traders to understand the chatbot’s reasoning behind the code. In closing, ChatGPT provided a warning to conduct thorough research before making any trade decisions and putting money at risk. 

Pros

• ChatGPT can analyze vast amounts of data in a matter of seconds
• ChatGPT is effective at generating code of varying complexity
• The AI is effective at providing definitions for a wide variety of trading concepts
• The free account comes with plenty of value 

Cons

• ChatGPT’s knowledge is limited to historical data up to 2021
• Results can vary based on the time of day and demand
• Subscriptions on the platform can be expensive
• ChatGPT requires URL links to read documents
• ChatGPT is not authorized to provide direct financial advice

• ChatGPT can be useful in creating a Forex trading strategy but requires a lot of trial and error from users
• ChatGPT is not authorized to give direct financial advice, which can be averted by using creative prompts and driving the conversation in the desired direction
• Users should try to avoid asking ChatGPT for expert opinions and up-to-date trading data, as the AI has a data cutoff point set at 2021
• Once ChatGPT reaches a desired conversation path, users are advised to ask the AI to expand upon its previous answers
• When ChatGPT arrives at a desired Forex trading strategy, users can also ask the AI to present the strategy in the form of MQL5 code