I trained an AI to be a technical analysis guru on 3500 pages of trading commentary

[jingle03]

Essentially, I had a whole collection of technical analysis and options trading books in PDF form. So naturally I wondered what would happen if I used it as training data with Mistral. I was very surprised by what came out.

After training, I posed it with this question: What does it mean when a narrow spread candle with above average volume forms?

The trained LLM's response:

A narrow spread candle with above average volume can indicate a few different things. It could mean that the market is experiencing a period of consolidation, where price is moving sideways and not making significant moves in either direction. The above average volume could suggest that there is a lot of activity happening within the market, but not much is changing in terms of price movement.It could also indicate a period of transition, where the market is moving from one trend to another. For example, if the market has been in a strong uptrend and the candle forms after a significant price increase, it could signal that the market is starting to consolidate and may be entering a sideways period before continuing the uptrend.In some cases, a narrow spread candle with above average volume could also indicate a period of indecision, where buyers and sellers are both present, but neither is able to gain the upper hand. This can lead to a period of sideways movement as the market tries to determine which direction to move in.Overall, the meaning of a narrow spread candle with above average volume will depend on the specific context and market conditions. It is always a good idea to consider other factors, such as price action and news events, when interpreting candle patterns.

Full discussion and guide available here:

https://medium.com/ai-advances/i-built-a-technical-analysis-ai-guru-from-scratch-6083370101d2

Here is the full list of books I fed the LLM:

1. Brian Overby — The Options Playbook, Expanded 2nd Edition
2. Buff Pelz Dormeier — Investing with Volume Analysis
3. Lawrence G. McMillan — Options as a Strategic Investment, Fourth Edition
4. Mark Leibovit — The Trader’s Book of Volume, The Definitive Guide to Volume Trading
5. Laurentiu Damir — Price Action Breakdown, Exclusive Price Action Trading Approach to Financial Markets
6. Sheldon Natenberg — Option Volatility and Pricing
7. Steven Achelis — Technical Analysis from A to Z
8. Jesse Seal — Trading Stocks with a 9 to 5
9. Mark Sebastian, L. Celeste Taylor — Trading Options for Edge
10. Anna Couling — A Complete Guide To Volume Price Analysis

If you'd be interested in learning how to fine-tune Llama 2 or any other open-source LLM on your data, then subscribe to my newsletter because I'm working on affordable resources to teach you how to do just that: https://msamon.beehiiv.com/subscribe

 

[john53]

@jingle03 Very cool! Can he provide real-time predictions on price movement?

 

[jingle03]

@john53 There were some chart analyses in the books I trained it on but I haven't determined the best way to present real-time data in a manner that it's best trained to. Giving a csv of OHLC data for example does not work well. Open to suggestions however

 

[jjgodman]

@jingle03 Connect an API from a stock market data broker, for instance: https://www.alphavantage.co/ (at least you’d be able to if you have used the AI assistant in ChaGPT.

 

[moonlightlaura]

@jingle03 Been really interested in doing something like this, Just subscribed to your newsletter. Would love to learn more