How to Create a Passive Income Stream with AI

Hey guys, welcome back! So, I’m in Japan today, and I want to share with you how creating a passive income stream can help you achieve the same freedom. Now, before everybody gets mad at me for being in Japan, I just want to say you too can be in Japan. I know we all want to be in Japan, eat some sashimi.

I’ll give you a room tour to show you off this luxurious room, but what you need is a reliable passive income stream to make this lifestyle possible. By dedicating time and effort to building a passive income stream, you can break free from the chains of a traditional office job and enjoy the benefits of location independence.

You don’t want to be chained to an office necessarily, and so today, I’m going to show you how you can use ChatGPT to generate some passive income streams for yourself, so that you’re making money even when you’re sleeping, allowing you to travel and still be able to support yourself while you’re at it.

Let me show you these two automated systems I’ve set up for myself. These are two trading bots on crypto that have been running just a few days, and we can see the Bitcoin trading bot has already made 62 dollars. In one day, it actually even made 250 dollars!

The Ethereum trading bot is using a different algorithm. I’m still testing this one, but it’s up about three dollars right now, and I’m hopeful that this one may perform better. Basically, I’m using ChatGPT to write this coding trading algorithm for crypto that I’ve always wanted to do in my head.

I knew this would be a strong technical signal, a good algorithm that could possibly make some decent money here, and now I’m finally able to implement that algorithm through the help of ChatGPT on the Pionex crypto trading bot platform.

Now, Pionex has also kindly sponsored this article, and if you sign up with them, you’ll get a bunch of free goodies, like over a thousand dollars worth of bonuses. So, check them out! There’ll be a link in the description below, and you can also get started making passive income streams with crypto trading bots.
But enough talk, let’s take a look at what I’ve done here.

We strongly recommend that you check out our guide on how to take advantage of AI in today’s passive income economy.

The Crypto Trading Algorithm

This is the crypto trading algorithm, and it’s actually based on a very simple but quite a strong technical indicator, which is the crossover on the 25 simple day moving average and the 50 day.

We can see here these are the simple moving averages, the 25 and 50. The 25 is the brighter orange line, and whenever the 25 crosses the 50, it puts in a buy signal. When it crosses down under it, it puts in a sell.

This is kind of a momentum trading algorithm. I have it operating on Bitcoin, and we can just see anytime the 25 crosses over, it puts in the buy order, and then when it crosses under, it sells.

So, we can see this indicator can be quite useful. Here, it put in the buy order right before this huge price ramp up, caught this huge bull market move, and then it sold when the price started moving sideways again.

This can also protect your market position. We can see it putting a sell order for me right here. This actually saved me a ton of money because there was this bearish downwards momentum. Then, later on, just this morning actually, it rebought that position when the 25/50 simple moving average crossed over again. That’s signaling a little bit more bullish momentum now.

We can see the trades it’s making here, actually. This was the sell here on the 4/20 at 6 am, it sold my position, and that coincides exactly with the day chart. 4/20 at 6am, right there. So, I would have been sleeping at this time, but it caught that for me.

I think it’s funny, it actually shorted that position for me. So, it earned 250 dollars in that bearish downwards momentum. Then, we can see there’s another open position for Bitcoin here, and that’s the position it just bought this morning.

The Ethereum Squeeze Trading Bot

This is one of two crypto trading bots I’m running. The other one here, I have high hopes for. It is the Ethereum squeeze trading bot. I’ll talk about this in a moment, but this one just began running recently because Ethereum was kind of in the down market, so it didn’t buy any positions.

Now that it’s starting to climb up again, it recently opened the position. So, we’ll see how this one goes. But here’s how I’m doing this, and you can do something similar as well.

You don’t actually need technical knowledge to do any of this. It’s very simple. You can just click a few buttons if you want to earn some passive income streams with this as well, although you’ll take note there’s some risk as well. Do your own research, of course, and start small.

But you go into “More”, and then you click “Pionex GPT”. Now here, you can ask Pionex GPT what type of trading algorithm you want. So, I say, “Give me a trading strategy on the SMA 25/50,” because I know this is a pretty strong technical indicator. It’s been reliable for me in the past.

And it’s going to just turn out this algorithm here. Once you have the code, you can click “Copy and Backtest on TradingView”, and it takes you to the charting platform TradingView. You can just come into the Pine Editor and copy and paste in that code.

Now, take note, you may have to make a few small code modifications here because ChatGPT doesn’t necessarily get everything right right away. But you know, you can also come into this GPT Marketplace here, and there’s a bunch of pre-crafted solutions here that other people have written and backtested, and you can check their performance. Then, you can just copy trade these with a single click of a button.

But if we come back to here, I’m going to click “Add to Chart”. It’s going to compile that, and we can see it’s actually putting in the buy and sell orders here to show us when it’s doing that. And so, just like that, so simple, we have this crypto trading algorithm that I’ve always wanted to implement in my head.

We can actually backtest this just to check the performance. We go into the “Strategy Tester”. I’m going to set the properties for this. So, we’ll say maybe initial capital of a thousand dollars, and we’ll do thousand dollar order sizes or so.

Then, if I click “OK”, it’s going to show us the backtester performance. About 23% positive return on investment, which seems pretty good and is something I’m willing to try on and test my money on here.

Now, if you want to backtest the strategy from just the last month or so, on a technical note, I realized that you can actually modify the algorithm to just trade within, say, from March 1st or so.

So, we can actually go back to Pionex GPT and modify the algorithm to be valid from March 1st.

Modifying the Algorithm

Sure, to modify the algorithm, we can add a simple condition to check the date. So, it’s going to do that for us. We’ve got a timestamp now.

I’m going to copy and paste this, add it to the chart. I had to modify the timestamp parameters a bit, but now we can see it’s only going to trade from March 1st.

So, now if I run this backtest again, we can see just within the last month, it averaged about 16% positive return, which annualized across the year is almost like 200% APY, which would just be fantastic.

I’m leaving this crypto trading bot open just to see what type of deals it can return for me. And you know, the great thing about this is it’s not trading based on emotion. It’s just doing the trades based on the 25/50 simple moving crossovers.

Now, once you have this trading algorithm set up just the way you want, you want to choose the time scale you want. I’ve set it to hourly or so. Then you come into Pionex, and you can click “Trade” and create a “Signal Trading Bot”.

This is going to trade automatically based on TradingView custom signals. We’ll call it the “BTC SMA 25/50” or so, click “Continue”. Then, you’re going to choose the webhook URL, copy that, come into TradingView, and click on this alarm icon, “Notifications”, and paste in that webhook URL.

So, you paste that, then it’s going to send the signal back to Pionex. Then, you’re going to want to copy this message parameter. It’s just a field here. Come into “Settings” and paste that here as well.

With that, you click “Confirm”, and your trading bot is created. Then, you just choose the trading pair you want. In this case, I’m doing Bitcoin. You can actually have leverage if you like as well. And then, just choose how much you want to put in, and it’s actually going to start learning and showing this bot algorithm trading for you.

So, that’s a simple way to start trading momentum on crypto and earn some passive income streams in any type of market, whether it’s an up market or a down market.

And so, if you like this algorithm, I will leave the code on screen here. You can screenshot it if you like and copy, modify however you like. You know, I could probably charge something for this crypto trading algorithm, but you know, I’m a kind, generous person.

The Ethereum Squeeze Algorithm

But I also want to show you another algorithm here that I’ve been working on, and this is the Ethereum squeeze algorithm. Now, this algorithm is just for the Connoisseurs. It’s custom stuff, actually. I’ve yet to test it, but I have high hopes for it.

But before I get into this, I also want to show you, by the way, you can also use a very simple strategy if you want to do the simple moving average stuff. You can just use MACD to buy and sell.

So, from Pionex GPT, you can ask it for an MACD algorithm. MACD is Moving Average Convergence Divergence, which is basically very similar to what we just did. It’s trading on momentum when the simple moving averages crossed.

This one is actually based on the 12/26 exponential moving average. So, it’s kind of similar, basically similar trends. And this one, you can just copy and use this code right away. Or again, you can also just go to the GPT Marketplace, and it’s going to have all these algorithms that you can just really quickly get in on. Definitely some fun stuff to play around with.

But let me show you how I got to this connoisseur algorithm that I’m talking about, the squeeze algorithm.
So, let’s take a look at this algorithm. We can see it actually just got started yesterday, so I’ve yet to really fully test this, but it has already been in profit, making three bucks here. Could be good.

This algorithm is pretty advanced, actually. It’s using something known as the Squeeze Momentum Indicator. And the way I found this, by the way, is if you go into “Community Scripts” and you sort it by the top most popular scripts, you can see the number one here is the “Squeeze Momentum Indicator” by LazyBear.

And if you actually go into the documentation here, we can see that it’s based on this research paper, “John Carter’s TTM Squeeze – Volatility Indicator” in this book, “Mastering the Trade”.

Okay, now apparently this indicator is so popular, 83,000 people have liked it. But what this does is it identifies price bands, the Bollinger Bands. And when the prices within those bands, it says, “Okay, there’s not much movement here, so it’s not going to make a trade.”

Long story short, it identifies these squeeze zones when there’s rapid price movement. The price is squeezed either upwards or downwards, and that’s indicated by these gray crosses here on the timeline.

And then there’s also these black crosses here. The black crosses, we can see the price isn’t really moving. Then there’s these gray crosses here, rapid price movement.

And then, when the momentum goes down negative, that’s when you want to sell. And then, when there’s a squeeze zone here again, you want to buy it and then sell again when the momentum turns red.

We can see here, actually, though, even though there’s green momentum, it’s not a squeeze zone. And so, in this section, it says you don’t necessarily want to buy here because the price movement is pretty neutral.

So, you only want to buy when there’s this confirmed upwards trend. What I did is I actually took this code. You can actually come here, see the source code, and you can just copy that.

Now, the problem here is that this code is just an indicator. It’s not a trading strategy. And so, it needs to be modified into a trading strategy with buy and sell signals. Right now, it’s just a bunch of charts, which is nice, but you want to automate the trading for it.

And so, I came into Pionex GPT again, I copied and pasted this code and told Pionex, “Make it a strategy,” because hey, who wouldn’t want to trade based on the most popular technical indicator around here?

And then, Pionex GPT basically helped me turn this into a piece of working code. Now, take note, I have no idea how to write in this language. It’s Pine Script.

I’m basically using ChatGPT and a bit of human modification. I was able to get this code running. I essentially changed it from a study into a strategy. And then, I added buy and sell signals here for when to go long and when to close that long.

And I said, “Okay, here’s the timestamp. Start it from March 1st again, like usual.” And so, now when I add this to the chart, voila! This may be exactly what’s going to be making me rich, you guys. Like, this could be my ticket here.

Because this is showing exactly when I need to go long or to close these longs based on the Squeeze Momentum Indicator, which is like the number one indicator out here. We’ve got tens of thousands of people following this thing.

So, showing you right here, for example, when there’s this gray zone here on the lower chart, this is when there’s a squeeze coming in. It’s going to go long there, and it’s going to sell right when the momentum turns negative, even a little bit.

So, it’s going to lock in these little profits for me just whenever I needed to. This one is really only doing longs. I don’t have shorting anywhere.
And so, we can see right here, it’s going to go long and then sell right when the momentum turns negative. And so, the indicators are going to have tighter margins. The profit signals may be much clearer.

I mean, we can backtest this as well just to see, like, how rich am I going to be out here, you guys? And we can see over the past month, the profit has been about 16% return on investment, which is maybe similar to the simple moving average strategy.

There’s a 2.3x profit factor, 35% trades are profitable, and the max drawdown here, just about 70 USDT, which is pretty good based on putting in 1000 USD to the initial capital.

So, personally, I’m hopeful that this crypto trading algorithm strategy may make me riches, some passive income streams at least, or at least get me an entry into some of these trades, maybe help me dollar-cost average.

And here’s the source code if you want to copy and paste any of it, modify it as you wish to create your own passive income stream. But it’s very similar to the original code with just a few modifications. By adapting this code to your needs, you can potentially develop a robust passive income stream that works for you.

You know, one improvement is you can make it short the markets as well. Currently, it just does longs. But even if you don’t want the code, you can always come to the GPT Marketplace on Pionex, and there’s all these pre-crafted trading strategies you can play with.

And beyond the custom coding algorithm bots, you also have like grid trading bots, DCA bots, rebalancing bots, futures arbitrage bots. And so, a lot of the tools to play with here to help us make money in any type of market, whether it’s a bull market, bear market, or sideways moving market, which seems to be what we’re in right now. By diversifying your passive income stream across different market conditions, you can potentially minimize risk and optimize returns.

And personally, I love how these bots are watching the markets 24/7. So, sometimes I just get a notification on my phone like, “Hey, a buy order has been placed.” And I’ll take a look and yeah, there’s a rally coming in.

Or suddenly, there’s a sell order, and I’ll see, oh, the market’s taking a downturn, but my passive income stream remains strong. So, I don’t have to worry as much because the bots are making the trades for me faster than I can, more unemotionally than me. And I know that’s hard to believe, but that’s how it is. By leveraging these automated trading strategies, I can maintain a consistent passive income stream even during market fluctuations.

So, if you want to check them out as well, Pionex, they’ve got all these bonuses for you, their futures bonuses, like over a thousand dollars worth of bonuses. You can sign up in the link below.

Other than that, hope you learned something new today. Let me know your thoughts on these crypto trading algorithms. You think they’ll work for me? Think I’ll be rich? See you in the comments below. I’ll see you at the top! Remember, the key to financial freedom is building a reliable passive income stream.

Frequently Asked Questions (FAQ)

How can I make $1000 a month passively?

There are several ways to generate passive income streams that can potentially help you earn $1000 a month. Some popular options include:

1. Investing in dividend-paying stocks or real estate investment trusts (REITs)
2. Creating and selling online courses or digital products
3. Building a profitable blog or website that generates income through advertising, affiliate marketing, or sponsored content
4. Renting out a property or a room on platforms like Airbnb or Vrbo
5. Investing in peer-to-peer lending platforms or high-yield savings accounts
6. Creating and monetizing a YouTube channel or podcast
7. Selling stock photos or videos online
8. Developing and selling mobile apps or software

Keep in mind that building a substantial passive income stream takes time, effort, and sometimes an initial investment.

What is passive income in Nigeria?

Passive income in Nigeria refers to the same concept as in other countries – earning money without active involvement or effort. Some popular passive income streams in Nigeria include:

1. Real estate investments, such as rental properties or land appreciation
2. Dividend-paying stocks or mutual funds
3. Agriculture and livestock farming, where you can hire managers to oversee the day-to-day operations
4. Investing in high-yield savings accounts or fixed deposits
5. Venturing into the transportation business, such as owning a fleet of vehicles for hire
6. Creating and monetizing digital content, such as blogs, YouTube channels, or online courses

It’s essential to thoroughly research any investment opportunity and consider the local market conditions and regulations before committing your funds.

How to make $2000 a month passive income?

To generate $2000 a month in passive income, you may need to combine multiple strategies or invest a significant amount of money upfront. Some ideas include:

1. Investing in a diversified portfolio of dividend-paying stocks or REITs that collectively yield a high return
2. Purchasing and renting out multiple properties or a multi-unit building
3. Creating a series of high-value online courses or digital products that consistently sell
4. Building a large, monetized audience for your blog, YouTube channel, or podcast through consistent, high-quality content creation
5. Investing in a well-established, profitable business as a silent partner
6. Developing and selling a successful mobile app or software that generates recurring revenue

Remember, building a substantial passive income stream requires patience, persistence, and often a significant initial investment of time or money.

What is the easiest form of passive income?

The easiest form of passive income varies from person to person, depending on their skills, interests, and available resources. However, some relatively simple passive income ideas include:

1. Investing in high-yield savings accounts or certificates of deposit (CDs)
2. Renting out a spare room, parking space, or storage area
3. Selling digital products, such as stock photos, printables, or templates
4. Participating in affiliate marketing by promoting products or services you believe in
5. Creating and selling a simple online course or e-book on a topic you’re knowledgeable about
6. Investing in dividend-paying stocks or index funds
7. Renting out items you own, such as tools, equipment, or party supplies

While these ideas may be easier to start, they may not necessarily generate a high income. It’s essential to research and compare different passive income strategies to find the best fit for your lifestyle and financial goals.

We strongly recommend that you check out our guide on how to take advantage of AI in today’s passive income economy.