Crypto influencer Rekt Fencer recently shared a Bitcoin trading algorithm developed with OpenAI’s ChatGPT, sparking skepticism among users.

Trading algorithms play a crucial role in various financial markets, including cryptocurrencies, by automating trading processes based on preset rules and mathematical models.

Rekt Fencer claimed to have created a Bitcoin trading bot that earned $71,500, leveraging the Bollinger Bands Indicator on TradingView, as per the influencer’s April 25 thread.

According to Rekt Fencer, the trading bot was built in just 10 minutes using AI prompts from ChatGPT and aided in resolving coding errors and technical issues.

However, users raised doubts about the bot’s performance, suggesting that the results shared might be from backtesting rather than real-time trading profits. Backtesting involves simulating trades in a controlled environment to assess strategy effectiveness.

Community members pointed out the absence of mention of losses in the X thread, indicating that the results might not accurately reflect real market conditions.

Creating a trading algorithm is a complex process that requires technical expertise, raising concerns about the suitability of AI bots like OpenAI for this task. Users are advised to exercise caution when deploying automated trading systems with real funds.

It’s important to note that trading algorithms are not foolproof and may not always perform as expected in live trading conditions. Therefore, it’s essential to thoroughly test and validate any trading strategy before committing real capital.

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