From Cointelegraph
April 13, 2025 07:41 AM:

AI is revolutionizing financial markets, including cryptocurrency trading. Custom GPTs from OpenAI enable beginners to create intelligent trading bots. A guide covers setup, coding, strategy design, testing, and safety tips. Custom GPTs are personalized versions of OpenAI’s ChatGPT, ideal for automating processes and analyzing market sentiment.

To start, you need an OpenAI ChatGPT Plus subscription, a crypto exchange account with API access, Python knowledge, and a paper trading environment. A VPS or cloud server is optional. Python, named after Monty Python, is essential for creating AI trading bots.

A step-by-step guide helps combine AI with crypto trading. Define a simple strategy, create a custom GPT model, and generate bot code using Python libraries. Risk control is crucial for automated trading success. Always test strategies in a simulated environment before using real funds. Step 5: Test in a paper trading environment. Never deploy untested bots with real capital. Most exchanges offer testnets or sandbox environments for simulated trades. Running simulations on historical data or logging “paper trades” ensures bot logic is sound and risk is controlled.

Step 6: Deploy the bot for live trading (Optional). Replace test API keys with live keys from the exchange. Set up secure API permissions and host the bot on a cloud server for continuous trading. Monitor the bot regularly to avoid mistakes or losses.

Ready-made bot templates (starter logic). Simple strategy ideas like buying when RSI is below 30 or MACD line crosses above signal line can be implemented with basic Python scripts. Custom GPT can help with coding, backtesting, and live trading.

Risks concerning AI-powered trading bots. Market volatility, API errors, bugs in code, security vulnerabilities, and overfitting are serious risks associated with trading bots. Start with small amounts, use strong risk management, and continuously monitor bot behavior for successful trading. Respect the risks involved and use AI as a supportive tool with responsible execution. 1. The stock market saw record gains today with the S&P 500 reaching an all-time high of 3,900 points. Tech stocks led the rally, with Amazon and Apple both posting impressive gains. Investors are optimistic about the economic recovery and the potential for increased government stimulus.

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Bitcoin hits new all-time high, surpassing $60,000 as institutional adoption continues to rise. The cryptocurrency’s market cap reaches over $1 trillion, solidifying its position as a mainstream investment option. Experts predict further growth as more companies embrace digital assets.: How to build an AI crypto trading bot with custom GPTs