On March 14, 2023, OpenAI announced the release of ChatGPT 4.0, a cutting-edge language model that has been trained on vast amounts of text data, enabling it to understand and generate responses to complex queries from its users. While ChatGPT strives to be accurate, it is essential to verify the information it generates, as it mimics human responses and is not designed to be 100% precise.
The model has been trained to be proficient in indicators used in technical analysis, allowing it to make logical inferences based on various data components. It helps traders develop new strategies and insights into the market, in turn leading to better trading decisions.
The ChatGPT model is not designed to predict cryptocurrency prices in the future. However, using a jailbreak method, we asked it to estimate the prices of Cardano and Bitcoin in 2023. The results were surprising, with ChatGPT predicting a price of $68.7k for BTC and $3.1k for ADA.
Despite the limitations of the bot, it can help optimize algorithmic trading by providing traders with insights on technical analysis and a demonstration of risk management. Its ability to create a basic template for a trading journal and a position size calculator can be an essential tool for beginners in the trading industry.
While ChatGPT can positively impact intermediate traders, it is limited to training data up to 2021, rendering it less useful for advanced traders. Experts highlight that the tool’s primary benefit will be a short window of time to gain a potential advantage in trading.
