How to Backtest a Trading Strategy using Chatgpt?

Even though Chatgpt has gained enough traction most of them are using it as a replacement to Google search. But with Chatgpt4, data analysis & backtest have become much easier.

Here's the step by step process. Sign up with by default you get access to ChatGPT 3.5 only. With this version, you can upload any files to perform any data analysis. It's more of a plain chatbot with AI. chat.openai.com

People who have gone through hardship during their early age, who really struggled hard financially when they were kid, once they become successful, most of them do this mistake when they become a parent. Things which you were not able to buy when you were a kid,
1/n you start spending so much money for the things your kid wanted. You don’t want your kids to get disappointed, so you tend to buy them those costly toys or whatever they ask for you tend to buy them. It makes you feel more happier seeing your kid happy

5 to 10 years before doing Algo Trading is a big task,you need to put lot of time n effort in automating your trading system,but now with rise of no code platform, algo trading has become easier. But many doing it in a wrong way,here's some of the common mistakes you should avoid Many get excited when they learn about a new trading strategy, they tend to feel that their current trading system is not as good as this new system, so immediately they abandon the existing system and deploy all their capital with the new trading system. Don't do this.

Are you finding it really difficult with food digestion, to ease that do you regularly drink carbonated drinks like Pepsi/Coke/Limca ? This is exactly what my dad use to do very often, but never thought this could turn into a life threatening moment for him. Here’s what happened He is almost 70 years old, teetotaller, doesn’t drink or smoke, pure vegetarian. Walks regularly, he averages more than 8k steps a day. Sleeps usually by 8:30 or 9 pm max, and wakes up by 6am. Very spiritual, goes for a solo trip often to visit temples across India.

Should I go for home loan or continue with staying in a rented flat? This dilemma is there in every working professional’s mind. My friends use to say, if you really hate your job then take a home loan you will definitely start loving your job. Home loan is a long term commitment,no matter what you just have to keep paying EMI for 25 years. Once you take a loan you hardly come out of your comfort zone. You will be hesitant to take any important career decisions, job safety becomes top priority than new opportunities.

The Extension of Trading Hours is almost confirmed now - Is it the End of Options Trading ? Actually SEBI approved it in the year 2018 itself. So it's not a surprise for most of the market participants. But many option traders are worried that this will affect their system. All traders trading 6 hours every day are already stressed with this volatile market, and if it's extended till 11:55 PM, then everyone will be totally drained spending more screentime.

Are you struggling to make profits on Expiry Days? Are you finding it really difficult to understand the Bank Nifty behaviour on expiry days? Then this video will definitely help you out. The major difference between Experienced Trader and New Trader is screen time, experienced trader remember the charts on how the market behaved historically, so accordingly they create trading strategy, most beginners, just straight away create strategy like 920 Short Straddles.

In this thread, I am going to explain the rules of an option buying strategy that has given almost 500% returns in the last 6 years, from 2017 to 2022. All you have to do is spend just 5 mins of your time executing this strategy on the budget day. No Complex rules. No need to sit and monitor throughout the day. Just one trade, initiate it on budget day and close it on Expiry day.

Today I received a DM from a trader who wants to have a phone conversation, I thought this is just like any other msg ppl usually send, still went ahead and had a call with this relatively lesser known trader, but I was mind blown after the call. This one call changed my perspective towards trading and life completely. I have seen many traders complain about the limitations they have,
due to job they are unable to concentrate on trading,
due to studies not able to focus on trading, unable to find mentor etc

Over the last couple of years, I did n number of research on systematic investment methods.
What happens if I do SIP only during market corrections ?
What happens if I pick stocks based on momentum rules? Here’s small thread on Why I moved to index fund investing? 🧵 When it comes to trading most of us are busy with backtesting multiple option trading strategies with no code platforms like Stockmock Algotest etc but when it comes to investing very few charting platforms available to test long term investing methods.

I have been watching movies from a very early age and I just love it. Watching a good movie makes you forget that you are actually watching a movie. Here's a master thread about reviews of all the movies I have shared in twitter so far.Trying to find a weekend movie? Here it is

https://twitter.com/kirubaakaran/status/1238857767592456194?s=20&t=DtGD2Xh33qPnfQz0aWy5nA

Is your 920 Straddle not working this year? Your trading system which did well in the past is not doing good this year? Your drawdown already crossed historical max drawdown this year? Thinking what really went wrong in the year 2022? Then check this detailed data analysis 🧵 This is the yearly returns of 920 straddle system. Enter at 9.20, ATM, 25% Stop loss on individual leg, exit by 3:20 pm. No targets, No TSL. A simple 920 system as example. This year has given the worst performance in last 6 years. Let's find out what went wrong.

Historically it has never happened in the past, so probability of such event happening in the future is very minimal. If you trade based on this approach, it could bring in catastrophic results. Here's a story of a hedge fund manager who lost millions because of such approach 🧵 There is a very famous American Hedge fund manager who made 30% annualised return for 20 years, One lac invested with this trader would have grown to almost 2 Crores in 20 year period. He is the famous legendary trader Victor Niederhoffer who failed to follow his own rules.

When people talk about automated trading system, this is what comes to mind for most of the beginners who wanted to get into it. Many think it’s a plug n play system where you deposit the funds, link your account to the algo and it will trade for you n make money every month. 🧵 No! It doesn’t work like that. Algo trading is not money making machine and it doesn’t remove emotions. Whether its Auto trading or manual trading, emotions will always be there when it comes to trading. We can’t ignore it.

I once read this story on Reddit long back and wanted to share that, because I could completely relate this to trading. An Airbus 380 is on its way across the Atlantic. It flies consistently at 800 km/h at 35,000 feet when suddenly Fighter Jets appears. 🧵 The pilot of the fighter jet slows down, flies alongside the Airbus, and greets the pilot of the passenger plane by radio:

"Airbus, boring long flight, isn't it? Now, have a look here!"

I have shared multiple information related to trading and investing through my historical data analysis by writing various articles, here's the master thread that contains all my work in one place.🧵

https://twitter.com/kirubaakaran/status/1518864849509699584?s=20&t=Wsl7LZcpY59h-fNyN2PHmw

I have closely observed FinNifty for couple of weeks and then started trading live since last 4 expiry. If you are looking to start trading with FinNifty weekly option then this thread might be of great help to you. 🧵 Nifty Financial Services Index includes stocks from Banks, housing finance, NBFCs, Insurance and other financial services. But more than 60% of weightage goes to banking stocks whereas with Bank Nifty 100% of stocks belongs to banking category.

Here's some lesser known facts about Youtube which we use every single day. Youtube has 2.5 billion active monthly users worldwide. India tops the list with 467 Mn users, followed by USA with 247 Mn users. But in India, only 8 lacs users have Youtube premium subscription that is just 0.2% of total users in India whereas in USA more than 29.5 Mn users have Youtube premium subscriptions. Out of 50 Mn premiums users worldwide half of them are from USA. What does it say?

I have watched lot of movies but only few movies would change your perspective towards life, here’s the 10 movies that really changed my mindset

1.The Theory of Everything

Brilliant acting , truly mesmerising portrayal on life of Stephen Hawking, never felt bored even for a sec 2. Rush - it’s a film about F1 racer James Hunt & Nikki Lauda, excellent narration and incredible acting. The dialogues were truly masterpiece and it’s still stays in mind even after 9 years

Only few books would exactly convey what it is all about in the title itself. "Just Keep Buying" by @dollarsanddata is one such book. @morganhousel author of "The Psychology of Money" recommended this book in one of the podcast, I just loved it. Here's my review of this book When it comes to investing, I myself did lot of research and published detailed articles on different investing approach in my blog squareoff.in/blog/ After reading many books, research papers from SSRN I ended up testing multiple models to check two scenarios.

Monthly SIP is one most underrated investment option many people tend to ignore during their early stage of professional career. You really don’t need to invest lot of money, in fact just investing Rs.5000 every month at the Age of 25 can you fetch you almost 2 Crores corpus. 🧵 If someone missed investing at his early age and starts investing at the age of 40, then he need to invest Rs.25,000 every month (5 times more) in order earn similar retirement corpus.