I’ve always loved the stock market and more recently, cryptocurrency and other financial markets. The way traders engage in markets is fascinating and the human behavior and psychology behind it all is extraordinary.

As everyone else, I started playing around with ChatGPT-4 Plus and it’s amazing capabilities – the ability to ‘read’ and translate or extract context from images, diagrams, signs, photographs, slides, and more. This is truly incredible and not nearly enough people are talking about it. AI is severely under-hyped. I’ll tell you why in a bit. But first, let’s get back to the stock market.

Now, I’m not a technical or math wizard and don’t claim to be on the Internet, but I do understand the basics of many things. Let’s call me an average-Joe-jack-of-all trades type – someone who can do and understand many things ‘ok’, but can't do anything extremely exceptionally. So, I came across an image that outlines all the different types of ‘probability distributions’ for statistical analysis. I think it was from a Twitter post I read from @bindureddy. This intrigued me. How would AI explain this and what could I do with the insight? Since I’m not a scientist, but had this data scientist friend in the form of ChatGPT, I wanted to find out.

Here is the image uploaded to ChatGPT-4 Plus:

First, I asked the AI system to simply analyze the image for me and it came back with this answer (nothing fancy):

That wasn’t good enough and so, I kept asking questions. I even asked about a very specific stock – NAK. Here’s what I asked:

It gave me lots of information about how I could potentially use these probability distributions to analyze the stock market and the specific stock NAK. Here are a few examples of what it recommended to me to give you an idea:

You see, it was starting to give me an idea about how I could leverage this amazing technology to become a better investor and trader, so I then decided to upload historical price data for the stock NAK. I thought, let’s combine the probability distribution insights from ChatGPT with actual historical stock market price data. What could go wrong (or right)?

Upon uploading the new price data, the AI system reviewed the data points and then began to outline potential applications for each probability distribution in relation to the historical price data that was given for the stock NAK. Here’s an example of what ChatGPT gave as ouput:

It also gave me some crucial insights that I enjoyed studying:

So far, so good and I was quite impressed. However, I wanted to go further and so I confirmed to AI that I’d wanted to continue and was where things started to get mind-blowing.

Here are a few things that it gave me back as output (it was getting deeper into how to apply these probability distributions to the actual NAK historical price data):

It then started to actually calculate probabilities for the NAK stock price in relation to the data provided and statistical analysis methods described. Check this out:

Again, I’m not a data scientist, so this was incredible to me – and it took all of 15 minutes. I was blown away at the potential with this tool and other AI technologies. If I could generate such complex output, starting with a simple image of probability distributions, imagine how this technology is positioned to change the world.

It’s almost incomprehensible. It’s magic - literally.

Let’s go further.

Finally, it gave me output for the remaining distribution and even told me when to expect the next significant price movement for NAK (within the next 1-5 days, given the historical data analysis).

My head was brewing with ideas and I was smiling ear-to-ear. I couldn’t remember the last time I’d witnessed such a profound technology. How much further could you take this?

I thought, what if you could take this approach to build a SaaS business? Could you simply extrapolate from what ChatGPT already produced into a fully fledged SaaS business for investors and traders? I think so – in multiple ways.

Here are two simple ways to potentially do this:

SaaS Trading Analysis Platform

With the help of AI, build a website and platform to analyze stocks and cryptocurrencies. ChatGPT would do the heavy lifting in the form of data analyses, based on the probability distributions you give it (or any other predictive methods). The end-user would simply consume the output given from analysis and could then even compare stocks across expectations. This would give average traders an enormous advantage and edge over those without this type of analysis capability. Users would surely pay $50-$100/month to access this type of turnkey analysis.

Stock and Crypto Trading Indicators (plugin)

Again, with the help of AI, build a plugin to be used within the Tradingview environment, built using Pine Script. Simply describe the rules for each probability distribution and have ChatGPT code the Pine Script for you. Upload to Trading view and optimize the strategy performance. Refine this until you have a high probability performance strategy and use it to trade directly or sell access to the plugin to others to more effectively trade.

I’m yet to explore the limits of what ChatGPT, AI and other LLMs can do, but in the meantime there is plenty to experiment with.

I expect this technology to completely revolutionize the world and we’re just getting started. Enjoy!