Finding Multibagger Stock Using AI: ChatGPT Multibagger Startegy
Learn to use ChatGPT and TradingView to create a Pine Script for identifying multibagger stocks by setting buy and sell signals based on 52-week highs and lows.
Hey there, fellow investors! We all dream of catching those multibagger stocks, right? You know, the ones that can multiply your investment many times over. But finding such gems involves quite a bit of legwork, like doing fundamental analysis, checking out the company’s management, and diving into technical analysis. Wouldn’t it be awesome if there was a simpler way to spot these winners early on?
Well, you are in luck! Today, I am going to show you how to use ChatGPT and TradingView to make this whole process a lot easier. By the end of this article, you will know how to create a Pine Script that helps you identify potential multibagger stocks early, giving you clear buy and sell signals. Let's get started!
Step 1: Define Clear-Cut Rules
First, we need some simple rules for our strategy. We will focus on the momentum factor, which is all about catching stocks that are on the rise. Here is our game plan:
- Buy Signal: Enter a stock when it breaks its 52-week high.
- Sell Signal: Exit the stock when it falls below its 52-week low.
This way, we are betting on stocks that are already showing strength and riding them until they show signs of significant weakness.
Step 2: Use ChatGPT to Generate Pine Script
Now, let’s get ChatGPT to help us create the Pine Script code. We will ask it to write a script that:
- Buys a stock when it breaks its 52-week high.
- Sells a stock when it drops below its 52-week low.
Here’s how you can prompt ChatGPT:
“Create a Pine Script for TradingView that gives a buy signal when a stock breaks its 52-week high and a sell signal when it drops below its 52-week low.”
ChatGPT will then generate the code for you. Just copy this code.
For example,
![](https://www.dsij.in/Portals/0/EasyGalleryImages/1/26910/Screenshot-2024-06-01-190237.png)
Step 3: Implement the Script in TradingView
Next, head over to TradingView. If you are not already using it, TradingView is a fantastic platform for charting and analyzing stocks. Here’s what you need to do:
- Open the Pine Editor: At the bottom of the TradingView interface, there’s a tab called “Pine Editor.” Click on it.
- Paste the Code: Copy the Pine Script code from ChatGPT and paste it into the Pine Editor.
- Add to Chart: Click “Add to Chart.” This will apply the script to your stock chart.
![](https://www.dsij.in/Portals/0/EasyGalleryImages/1/26910/Screenshot-2024-06-01-190900.png)
Now, the script will calculate the 52-week high and low prices. You will get a buy signal if the stock’s price closes above the 52-week high. If it closes below the 52-week low, you will get a sell signal.
Step 4: See It in Action
Let’s look at a couple of examples to see how this works:
- Cochin Shipyard: Our script gave a buy signal at 194 rupees around August 2022. Since then, the stock has been on an upward journey, hitting 2,100 rupees. That’s a massive gain!
![NSE:COCHINSHIP Chart Image by prajwalwakhare](https://s3.tradingview.com/snapshots/4/4vumYRxs.png)
- Reliance Industries: The script gave a buy signal in 2015 and a sell signal in 2020, helping you capture significant gains over the years.
![NSE:RELIANCE Chart Image by prajwalwakhare](https://s3.tradingview.com/snapshots/g/gGsxZOMn.png)
You can try this with any stock—Mid-Cap, Large-Cap, you name it. For example, when Zomato breached its 52-week high of around 77.60 rupees, the script gave a buy signal, and the stock has been trending up since then.
![NSE:ZOMATO Chart Image by prajwalwakhare](https://s3.tradingview.com/snapshots/9/9BpYaOQt.png)
Fine-Tuning Your Strategy
Want to tweak the strategy a bit? Maybe you don’t want to wait for the stock to hit its 52-week low before selling. You can adjust the script to exit if the stock falls below its last 20-week low instead. This way, you can lock in profits sooner.
Just change the sell parameter in the Pine Script from 52 weeks to 20 weeks, and you will see the sell signals adjust accordingly. This is already made in the chart of Zomato example shown above.
Putting It All Together
Combining technical analysis (for entry and exit points) with fundamental analysis (to pick solid stocks) can help you build a portfolio of potential multibaggers. Websites like Screener.in are great for analyzing stocks based on fundamentals. Once you have a list of good candidates, apply your TradingView strategy to manage your trades.
That is it! By following these steps, you can simplify the process of finding and trading multibagger stocks. Give it a try, and you might just catch the next big winner!
Happy investing, and see you next time with much more interesting articles.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Related articles
-
Mukul Agarwal’s multibagger stock poised for growth; Opportunity Space of Rs 1.5 lakh Crores!
-
Back-to-back upper circuits: This multibagger recreational stock delivered stellar returns of 92.04 per cent in just one month!
-
Penny Stock Under Rs 5: DIIs Own 43.25 per cent Stake, Stock Hits Upper Circuit Consecutively for 12 Days, Gains 140 per cent in 1 Month!
-
Ashish Kacholia-Backed VFX Stock Hits 52-Week High with Heavy Volumes Today, Gains Over 400 Per cent Within 1 Year!
-
Rs 800 Crore Order Book: This Aerospace & Defence Electronic Stock Hits All-Time High with Heavy Volumes, Here's Why
-
Turnaround Wind Energy Stock Under Rs 30: Stock Hits Upper Circuit with Heavy Volumes, Stock Gains Over 190 per cent in Just 1 Year!
-
Back-to-Back Upper Circuit for 3 Days Ashish Kacholia-Backed Engineering Stock; Do You Own It?
-
Back-to-Back Upper Circuit Stock Under Rs 100: Do You Own This Hydraulic Engineering Equipment Manufacturing Stock?
-
1:4 Bonus Issue: Debt-Free Liquor Stock Hits All-Time High & Upper Circuit with Heavy Volume Today – Do You Own It?
-
Penny Stock Under Rs 20: This Oil Exploration Stock Hits Upper Circuit & 52-Week High Today; Q4 FY24 Net Profits Surge by 230 per cent: Must Watch!
-
52-Week High Alert: Steel Company Establishes New Manufacturing Plant in Raebareli, Uttar Pradesh; Stock Surges Over 140 per cent in One Year!
-
400 per cent multibagger returns and Heavy buying: This defence & aerospace stock bags new orders worth Rs 266 crore from Garden Reach Shipbuilders!
-
Rs 800 Crore Order Book: This Aerospace & Defence Electronic Company Bags Order Worth Rs 1,250 Crore from Larsen & Toubro!
-
Penny Stock Under 15: Company Bags Order Worth Rs 1,96,80,000 from BSNL; Stock Hits Upper Circuit Today!
-
Rs 57,536 Crore Order Book: Rekha Rakesh Jhunjhunwala-Backed Construction Company Bagged Order Worth Rs 335 Crore in June, Stock Gains Over 160 Per cent in Just 1 Year!
-
Stock Hits Upper Circuit After Small-Cap Multibagger Announces 3:1 Bonus Shares; Stock Gains Over 200 per cent in Just 6 Months Only!
-
Heavy buying: Back-to-back upper circuit in this multibagger solar power stock; bags new order for solar power plant worth Rs 4.12 crore!
-
This Artificial Intelligence Company's Shares Hit Upper Circuit: Here's Why? Promoter Increased Stake from 4.03 per cent to 34.03 per cent & FIIs own 22.93 per cent stake!
-
Solar Company Bags Order Worth Rs 17,82,10,800 from Eminent Paper Industries, Stock Gains Over 230 per cent in just 6 months!
-
Rs 800 Crore Order Book: This Small-Cap Company Secures Rs 53,00,00,000 Order from Housing & Urban Development Department, Government of Odisha