Ethereum co-founder Vitalik Buterin finds that while ChatGPT is limited, it exposes amateurs to software libraries they can use to formulate more meaningful answers.
ChatGPT offered Buterin application programming interfaces (APIs) to calculate how the distance between two points relates to the travel time between them.
ChatGPT Can Help Traders Develop Custom Tools
The artificial intelligence (AI) bot offered Buterin assistance writing a script to access publicly-available data from GeoLife and compute the distance between two points using a Google Maps API.
It also helped Buterin write code to create a scatter plot of time-distance pairs on the first try and itself wrote a script to interpret GeoLife’s location data.
However, the bot could not supply any APIs to calculate the optimal route, including flights, between two points more than 500 km apart.
Computers interpret commands in a script and execute them immediately without needing to compile them in high-level programming languages like Solidity. Solidity compilers, for example, can convert human-readable smart contract code into ones and zeros that the Ethereum Virtual Machine understands.
AI Can Benefit Traders
Vitalik Buterin’s experiment reveals that while AI tools like ChatGPT can fail to produce accurate answers on the fly, they can speed up the development of custom tools that traders can benefit from.
San Francisco-based prime broker FalconX recently announced a new artificial intelligence tool called Satoshi to offer trading advice. The tool would assist users in employing software-based trading strategies based on a specific portfolio or market scenario. It uses a similar large language AI training model to ChatGPT. The tool is still in its infancy.
Like Buterin, traders can ask ChatGPT to write a script corresponding to their strategies. For example, a trader can already use the tool to outline the steps of a specific stock trading strategy. The trader can then choose to implement the plan in a script or ask the tool to do so.
In December last year, an award-winning AI writer and trader, Michael King, used ChatGPT to create a script to trade BTCUSDT on Binance. The AI tool provided API functions he needed to place a market buy order above Binance’s minimum threshold.
However, as in the case of Satoshi in its current form, ChatGPT itself cannot account for complex or unforeseen market conditions. Traders must also be aware of AI hallucinations, where a fallacy is convincingly presented as fact.
Also, Buterin noted that ChatGPT could occasionally generate incorrect results based on words used in a query.
Therefore, interpreting whether a trading script’s results are correct requires a minimum level of coding expertise.
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