ChatGPT AI Trading Bot: How to Make $1,000 Per Day in Passive Income

Introduction

In this article, we’ll explore an open-source trading bot developed with the help of ChatGPT, designed to generate passive income through decentralized exchanges like Uniswap. This innovative bot leverages arbitrage strategies, including sandwiching transactions, to maximize profits in the DeFi ecosystem. Whether you are a seasoned trader or a novice, this guide will help you navigate the complexities of setting up your trading bot without extensive coding experience.

What is the Trading Bot?

The trading bot operates based on the concept of sandwiching transactions. This means it analyzes the mempool—the waiting area for pending transactions—and selects specific transactions to front-run by setting higher gas prices. By doing so, the bot ensures that its transaction is processed before others, leading to a profit from the slippage of the transactions it "sandwiched."

Key Features:

Open-source code: Available for verification and adaptation to suit individual needs.
No coding experience required: Generated and provided mostly by artificial intelligence.
Decentralized exchange operations: Functions with popular platforms like Uniswap.
Profit mechanics: Designed to leverage arbitrage opportunities for passive income.
Flexible investment range: You can customize the amount of Ethereum you use, affecting potential profits.

Getting Started

Follow these steps to set up your trading bot:

Install MetaMask: This browser extension serves as your Web3 wallet, allowing interactions with Remix, a platform for creating Solidity-based smart contracts. Alternatives exist but MetaMask is often recommended for its ease-of-use and security.
Access Remix: Here, you can create and manage your smart contracts. A link to Remix will be provided in the description.
Create a New Contract: Under the contracts folder, create a file named bot.sol. Source code can be found in the description.
Compile the Bot: Ensure that you're using solidity version 0.8.4 and compile bot.sol.
Deploy the Bot: Use the “Deploy and Run Transactions” tab in Remix, select "Injected Provider," and connect your MetaMask. Set gas fees to aggressive for quicker processing.
Fund the Bot: Once deployed, copy the contract address and fund it with at least 0.2 Ethereum through MetaMask, using aggressive gas fees to ensure prompt transaction processing.
Start the Bot: After funding, simply click "start native" and monitor its performance.
Review Results: After a period (like 24 hours), you can check the bot’s balance on Etherscan, stop it, and withdraw profits.

Example Results

For demonstration, if you start with 1 Ethereum, you may find that after a day, your bot could generate over 2.5 Ethereum in profit. However, actual profits will fluctuate day-to-day, depending on market conditions and transaction success.

Conclusion

This trading bot is the result of extensive development and can potentially yield significant passive income with the right approach. Whether you choose to invest a small amount or a larger sum, remember that the profits can vary, and leveraging higher amounts may increase your profit potential.

Keywords

Open-source trading bot
ChatGPT
Passive income
Decentralized exchanges
Arbitrage
Mempool
Sandwich transactions
Ethereum
MetaMask
Remix

FAQ

Q1: Do I need to have coding experience to use this bot? No, you do not need coding experience. The majority of the code is generated by artificial intelligence, making it user-friendly.

Q2: How much Ethereum should I use to start with this bot? It is recommended to use at least 0.5 Ethereum for optimal performance. The absolute minimum is 0.2 Ethereum, but using more can increase potential profits.

Q3: Where can I find the bot's source code? The source code is available in the description of the video or article where this guide appears.

Q4: How do I check my bot’s performance? You can check your bot’s balance and transaction success by reviewing the information available on Etherscan after deploying and running the bot.

Q5: What are the risks involved with using this trading bot? While the bot can generate profits, it carries risks, including market fluctuations and potential losses if funded with insufficient liquidity. Always proceed with caution and invest wisely.