Hands-On with Prompt Engineering in Trading Stats

Introduction

In today's dynamic trading environment, the key to success lies not just in possessing data, but in harnessing it efficiently and intelligently. With the advent of AI-powered tools like ChatGPT plugins, traders and investors can now access and analyze data with unprecedented ease and precision. These advanced tools offer a comprehensive view of the market, from historical price trends and fundamental stock metrics like EPS to real-time news updates and sentiment analysis. They can extract insights from intricate financial statements, gauge market sentiment from social media analytics, and provide an in-depth look into the world of option chains.

This tutorial aims to guide individuals on how to effectively utilize these AI-enhanced tools, specifically focusing on the ChatGPT plugin. By integrating two standalone tools, Whimsical and ChatGPT, and exploring four distinct ChatGPT plugins - Polygon.io, AI Ticker Chat, PointsRecap, and OptionsPro - we present ten structured prompting techniques. These techniques, when automated, empower users to devise a data collection strategy tailored to various financial instruments, ensuring swift and accurate information retrieval. Dive in to stay a step ahead in your trading endeavors.

Mapping data strategy for traders using whimsical

Looking to decipher trading data more effectively? Dive into this guide where we combine the visual capabilities of Whimsical with the querying prowess of ChatGPT. Whimsical allows us to create intuitive mind maps, illustrating the interconnections in trading data, while ChatGPT assists in posing and comprehending crucial questions about stocks and companies. Together, these tools illuminate the essential data points in trading, guiding you towards informed decisions. Join us as we simplify the process, ensuring you harness these tools for optimal trading insights.

 Prompt 1: Give me prompt ideas for data collection in AI

Based on the mind map generated by whimsical, we need to fetch and analyse the financial and textual data in these six steps

Step 1. Analyzing historical market data, focusing on aspects like price, volume, and volatility.

Step 2. Understanding fundamental analysis metrics, particularly the earnings per share (EPS), which is pivotal for stock evaluation.

Step 3. Gleaning insights from news and sentiment analysis sourced from diverse platforms.

Step 4. Reviewing financial statements and reports of companies active in trading to gauge their financial health.

Step 5. Harnessing social media analytics to monitor market discussions and discern emerging trends.

Step 6. Exploring option chain data, which is instrumental in analyzing options contracts related to specific securities or indices.

In the subsequent sections, we will delve deep into various facets of trading data, from analyzing historical market indicators like price, volume, and volatility, to understanding the significance of fundamental metrics such as earnings per share (EPS) for stock evaluation. We'll also tap into diverse platforms for news and sentiment analysis, review financial statements of active trading companies, harness the power of social media analytics to discern market trends, and explore the intricacies of option chain data related to specific securities or indices.

Step 1: Fetching Historical Data using ChatGPT

Delving into trading often begins with examining historical market data. This encompasses past stock prices, trading volumes, and price fluctuations, offering insights into a stock's historical performance. In this section, we'll harness the capabilities of Polygon.io through ChatGPT, utilizing API calls to access precise financial data. Join us as we guide you through this process, ensuring you have a clear understanding of a stock's past trajectory.

Here's a step-by-step guide on how to use Polygon in ChatGPT:

Step 1. Ask Clearly: Tell ChatGPT your desired financial data, like Apple's latest stock news.

Step 2. Review Data: ChatGPT fetches the info using Polygon.io and presents it in a structured format.

Step 3. Dive Deeper: Pose follow-up questions or request more specific data points.

Step 4. Stay Informed & Compliant: Use the real-time data responsibly, adhering to financial regulations.

Prompt 2: Give me Historical market data such as price, volume, and volatility of APPLE

From the information provided, ChatGPT has offered a comprehensive analysis of the market data pertaining to Apple Inc.'s stock. This assessment can be further expanded upon to delve deeper into the historical price patterns, enhancing our understanding of its market trajectory.

Step 2: Understanding Fundamental Analysis through Prompt Engineering

To assess a company's financial robustness and growth prospects, certain key metrics are pivotal. Taking Apple Inc. as an example, metrics like Earnings Per Share (EPS), Year-on-Year (YoY) growth, profit margin, Price-to-Earnings (PE) ratio, and Profit After Tax (PAT) offer a holistic insight into its financial stance. In this subsection, we'll employ the Polygon plugin and prompt engineering to delve into these five crucial metrics, providing a clearer perspective on a company's financial health.

Prompt 3: Give detail about EPS, year-on-year (YoY) growth, profit margin, earnings per share (EPS), price-to-earnings (PE) ratio, and profit after tax (PAT). of APPL

The analysis has provided an in-depth output on the subject. We can further extend this study, leveraging ChatGPT and prompt engineering, to comprehend how fundamental KPIs influence a company's performance.

Step 3: Performing Sentiment Analysis on  news sources using ChatGPT

In the dynamic realm of trading, staying abreast of current events is essential. News and sentiment analysis serve as barometers, capturing market sentiments from diverse sources such as media publications, expert commentary, and social media chatter. Grasping the prevailing sentiment around a stock or the broader market equips traders with insights for better decision-making. This section delves into the importance of these analytical tools and their role in shaping successful trading strategies.

Prompt 4: Can you give me the latest news articles related to Apple's stock ticker?

After fetching the relevant news articles from divergent sources, Polygon.io can be deployed to analyze them using below mentioned prompt

Prompt 5: Do the Impact analysis of the news related to apple

Analyzing the impact of news on a stock's performance requires a combination of understanding the content of the news and observing the market's reaction to it. Here's a brief analysis based on the provided news articles related to Apple:

Apple Just Shed More Than $230 Billion In Market Cap

Impact Analysis: A significant drop in market capitalization indicates a loss of investor confidence or reaction to negative news. The mention of Apple possibly falling out of favor with the Chinese government is significant. China is a huge market for Apple, both in terms of sales and manufacturing. Any negative sentiment from the Chinese government can have substantial implications for Apple's revenue and operations in the region.

Apple Could Emerge Unscathed From China Ban

Impact Analysis: This article seems to provide a counter-narrative to the previous one. If analysts believe that Apple can navigate the challenges posed by the Chinese government's decisions, it could mitigate some of the negative sentiments. However, the actual outcome will depend on how Apple manages its relationship with the Chinese government and its strategies to counteract any bans or restrictions.

Here's Everything Apple Plans To Show At Its 'Wonderlust' Event

Impact Analysis: Product launch events are significant for Apple. They not only introduce new products but also set the tone for the company's direction in the coming months. Positive reception to new products can drive stock prices up, while disappointment can have the opposite effect. The anticipation of the iPhone 15 series suggests that investors and consumers are keenly waiting to see Apple's next move.

In the next step, we will try to look into the financial statement like 10-K, 10-Q, earnings transcript for Apple Inc

Step 4: Analyzing Financial Statements with the ChatGPT Plugin

For traders aiming to swiftly assess a company's financial well-being, this tutorial offers valuable insights. It guides users on utilizing the ChatGPT Plugin to effectively interpret key financial metrics such as assets, liabilities, and revenues. By the conclusion of this section, readers will possess a potent analytical tool to enhance the efficiency and accuracy of their trading evaluations.

How to Find Company Reports like 10K with AI Ticker Chat

This tool helps you find company reports, especially documents like the 10K, which is a yearly report companies make. Here's how to use it:

Step 1. Ask a Question: Think about the report you want to see. It could be a 10K, which is a yearly report, or other types of reports.

Step 2. Give Some Details: To help find the right report, please tell me:

   - The company's name or symbol.

   - The kind of report you want (like 10K for yearly reports).

   - The year you're interested in.

Step 3. Wait a Moment: After you tell me what you're looking for, I'll search for the report and show you what I find.

Step 4. Look at What I Found: I'll show you the report or information. You can read it, ask more questions, or ask for more details.

 Prompt 6: Give latest 10-K, 10-Q, earnings transcript for APPL

Prompt 7: Provide in-depth analysis of 10-K document for APPL

This analysis provides a high-level overview of the key points from Apple's 10-K.

This plugin has the potential to save a trader’s pain of going through the lengthy statements. Afterwards by asking the intelligent question through prompt engineering a thorough analysis can be conducted in minutes,

Step 5: Tracking Market Trends with Social Media Analytics using ChatGPT Plugin

Leveraging social media analytics provides a window into prevailing market discussions and emerging trends. Through the ChatGPT plugin, traders can seamlessly track real-time dialogues, pinpoint developing market patterns, and base their decisions on these insights. Incorporating this tool into a trading strategy ensures an edge in understanding and acting on market sentiments.

 How to Use PointsRecap: A Quick Tutorial

Step 1. Retrieve Viewpoints for a Ticker: Use the `getViewPoints` function with the desired stock ticker to get viewpoints. For example, `getViewPoints({ ticker: "AAPL" })` fetches viewpoints for Apple Inc.

Step 2. Access Recent Highlighted Videos: Simply call the `getRecentHighlights()` function to see the latest highlighted YouTube videos.

Step 3. Generate a Word Cloud: Understand trending topics in recent videos by using the `getWordCloud()` function, which returns a visual representation of frequently discussed topics.

Step 4. Analyze and Present Data: After obtaining the data from PointsRecap, analyze the results to gain insights and integrate them into your research or presentation.

We will further explore the latest chatter going around the Apple Inc on YouTube in the next two prompts.

Prompt 8: getViewPoints({ ticker: "AAPL" })

Prompt 9 : getWordCloud(APPL)

By looking at and analyzing the above output, an individual can understand the overall sentiment and trend related to Apple Inc and help in formulating a better strategy. In the next section, we will try to further our research through the data pertaining to option related to company.

Step 6: Analyzing Option Chain Data with ChatGPT Plugin

The options market can serve as a predictive lens for anticipated movements in a company's stock market. Key indicators such as volume and open interest can hint at bullish or bearish sentiments. Implied Volatility (IV) reflects expected stock price fluctuations, while the Put/Call Ratio offers a snapshot of market sentiment. Additionally, option pricing, activity in out-of-the-money options, and the chosen expiration dates can provide insights into traders' expectations. Furthermore, hedging activities by large institutional investors using options can reveal their outlook on a stock. In this subsection, we'll delve into how these intricate dynamics in the options market can shed light on potential stock market trends.

Option chains provide a structured display of all available option contracts for a specific security or index. These chains offer insights into various parameters like strike prices, expiration dates, and premiums. With the ChatGPT plugin, you can seamlessly retrieve and analyze this data in real-time. This tutorial will guide you through the process of harnessing the power of the ChatGPT plugin to make informed decisions regarding option contracts.

 Using OptionsPro with ChatGPT: A Five-Step Tutorial

OptionsPro offers a comprehensive suite of tools for analyzing options and financial data. This tutorial will guide you through five essential steps to harness the power of the OptionsPro plugin with ChatGPT.

Step 1: Set Up Your Environment

• Ensure you have access to the OptionsPro plugin and that it's integrated with ChatGPT.
• Familiarize yourself with the available endpoints mentioned above.

Step 2: Get a Market Overview

• Use the `getMarketOutlook` endpoint to gain insights into the general market trend.

  ```
  OptionsPro.getMarketOutlook()
  ```

• Analyze the returned data to understand the current market sentiment and key indicators.

Step 3: Dive into Individual Stock Analysis

• Choose a stock ticker you're interested in.
• Use the `getOptionFlow` endpoint to get the most traded options for that ticker.

  ```
  OptionsPro.getOptionFlow({ticker: "AAPL", topN: 10})
  ```

This will give you a list of the top 10 most traded options for Apple Inc.

Step 4: Monitor Unusual Option Activities

Use the `getOptionAlerts` endpoint to get alerts on unusual options activities.

  ```
  OptionsPro.getOptionAlerts({ticker: "AAPL"})
  ```

This will alert you to any unusual options activity for Apple Inc., helping you spot potential market-moving events.

Step 5: Analyze Option Details

Once you've identified an option of interest, delve deeper using the `getOptionDetails` endpoint.

  ```
  OptionsPro.getOptionDetails({ticker: "AAPL", type: "call", expiration: "2023-12-15", strike: 150})
  ```

This will provide details about the call option for Apple Inc. with a strike price of $150, expiring on December 15, 2023.

 Prompt 10: getOptionDetails APPL

This is the last step that can help us in formulating the strategy for data collection for trading using ChatGPT and prompt engineering.

Conclusion

In the ever-evolving landscape of trading, the fusion of AI-powered tools like ChatGPT plugins with traditional trading strategies has revolutionized the way traders access and interpret data. This tutorial illuminated the potential of combining tools like Whimsical with ChatGPT and delved into the capabilities of plugins such as Polygon.io, AI Ticker Chat, PointsRecap, and OptionsPro. By mastering the ten prompting techniques presented, traders can automate and refine their data collection processes, ensuring they're equipped with timely and precise information. As the world of trading continues to advance, leveraging these AI-enhanced tools will be paramount for those aiming to stay at the forefront of their trading journey.

Author Bio

Dr. Anshul Saxena is an author, corporate consultant, inventor, and educator who assists clients in finding financial solutions using quantum computing and generative AI. He has filed over three Indian patents and has been granted an Australian Innovation Patent. Anshul is the author of two best-selling books in the realm of HR Analytics and Quantum Computing (Packt Publications). He has been instrumental in setting up new-age specializations like decision sciences and business analytics in multiple business schools across India. Currently, he is working as Assistant Professor and Coordinator – Center for Emerging Business Technologies at CHRIST (Deemed to be University), Pune Lavasa Campus. Dr. Anshul has also worked with reputed companies like IBM as a curriculum designer and trainer and has been instrumental in training 1000+ academicians and working professionals from universities and corporate houses like UPES, CRMIT, and NITTE Mangalore, Vishwakarma University, Pune & Kaziranga University, and KPMG, IBM, Altran, TCS, Metro CASH & Carry, HPCL & IOC. With a work experience of 5 years in the domain of financial risk analytics with TCS and Northern Trust, Dr. Anshul has guided master's students in creating projects on emerging business technologies, which have resulted in 8+ Scopus-indexed papers. Dr. Anshul holds a PhD in Applied AI (Management), an MBA in Finance, and a BSc in Chemistry. He possesses multiple certificates in the field of Generative AI and Quantum Computing from organizations like SAS, IBM, IISC, Harvard, and BIMTECH.

Author of the book: Financial Modeling Using Quantum Computing