7 Forex Tasks ChatGPT Can’t Do For You

The advent of sophisticated AI chat apps such as ChatGPT and Gemini have taken the world by storm. Unsurprisingly, they can be valuable tools for forex traders. 

Here are some amazing things ChatGPT or Gemini can do for you:

• Teach you the basics of forex trading.
• Act as a sounding board you can bounce ideas off of.
• Explain concepts that you find confusing in simpler ways.
• Help you program a customized trading bot. 
• Help you analyze your trading stats. 

To make the most out of AI, however, it is important to also be aware of its limitations. In this article, we are going to go over a few things that AI cannot do for you when you are trading forex.

1. Make sure what you are learning is up-to-date and accurate.

AI can give you information about forex—but there are a couple of caveats:

• The information will not be up-to-date (ChatGPT, for instance, has a database that only goes up to 2021).
• The information may or may not be factual (AIs still “hallucinate” false information).

That means that you will need to manually fact-check any information you are given by an AI while you are researching and learning about forex. You cannot rely on the AI to be accurate or think for you. Only you can assess whether what it is telling you is true.

2. Trade for you (directly).

Something else you cannot do is tell ChatGPT, “Please place forex trades on my behalf.” It is not programmed to do that. It has no idea what the current market conditions are, or what price is for any asset, nor how to place a trade.

But you can actually use it for trading indirectly. One of ChatGPT’s capabilities is to create code for you according to your instructions. Some amount of debugging may be necessary, but you should be able to get it to run if you are willing to put in the effort.

So, what you can do is tell it to build a trading bot for you. You will need to input a strategy (something else it cannot do for you), and explain what you need the bot to do. You then will be able to export the completed code to your trading platform to run. It can then trade for you.

Note that ChatGPT is not your only option, nor is it even necessarily your best. Gemini or Code Llama may both be better options for coding purposes.

3. Introduce you to all of the strategies out there.

Depending on what is in their databases, these chatbots might be able to give you rundowns of some basic forex strategies. But they are not comprehensive compendiums of all the forex trading systems ever developed.

If you want to discover as many forex strategies as possible, you are going to have to go searching for them yourself. You can find numerous strategies posted online, many of them for free on forex forums, coaching sites or blogs. You also can find additional strategies in books. 

This is the only way you are going to find the strategy that is best for you. It can be one of the slowest, most fatiguing parts of learning how to trade, but it will eventually pay off.

4. Test strategies for you.

One of the reasons it can be fatiguing to choose a forex system is because you have to test out all of the methods you are thinking about using, one by one, until you find one that you are profitable with on paper.

This is also how you learn what makes a perfect setup, what red flags to avoid in terms of market conditions, and so on.

There are some trading platforms that can now automate your backtests if you input your trading rules. But as of right now, this is not a task that ChatGPT can do for you.

Regardless, we recommend you actually conduct at least some of your backtests manually. Why? Because, as we mentioned before, this is not just about proving a method can work—it is about learning how to make it work by executing it correctly. 

If trading really were as simple as blindly applying a set of rules, we would see a lot more successful forex traders in the world.

The reality is that even rules that seem simple and straightforward are highly interpretive and subjective. Any two traders will likely trade the same method differently from one another. 

5. Manage your money for you.

You can ask ChatGPT or Gemini to explain the basics of forex money management to you, and they will probably do a pretty good job. We have tested it, and when we did, these chatbots gave reasonable advice, like that you should only risk 2% of your account per trade, and avoid using the Martingale system.

But giving you advice about managing your money is not the same thing as actually managing your money. That is something you will need to do on your own.

ChatGPT can tell you to only risk 2%, but only you can actually input that amount into your trading platform.

ChatGPT can tell you not to use Martingale, but only you can resist the temptation to try it.

ChatGPT can tell you not to add money to your account you need to pay bills, but only you can avoid doing that. 

In other words, “you can lead a horse to water, but you cannot force it to drink.” 

You and you alone can actually value your money, and choose to treat it accordingly. 

6. Put in the hard work and discipline for you. 

Speaking of that whole horse and water bromide, another thing that a chatbot cannot do is replace the discipline that you will need to have to succeed as a forex trader.

Using ChatGPT for the tasks it can perform will free up some of your time, and help you expend less energy. But trading is still hard work, and the only person who can ultimately do that hard work is you.

That said, if you are having a hard time sticking with your trading, you could try talking to ChatGPT about what seems to be holding you back. Who knows? It might just be able to offer you some insights that could end up helping you make a breakthrough. 

7. Prevent problem behavious while forex trading.

Finally, one more thing that ChatGPT cannot do is prevent problem behaviors, i.e. treating investing like gambling.

Hopefully, you do not have these problems right now, and you understand what you need to do to avoid developing them.

But if you do find yourself engaging in risky, compulsive trading, you will need to take some time off from trading, and seek out help and resources. 

Use ChatGPT as Intended

Now you have a stronger understanding of ChatGPT’s limitations. So long as you are willing to pull your own weight and take care of the tasks automation cannot, you can leverage this tool effectively while trading forex.