Full transcript
Intro
0:00Using Jev and Claude together for AI
0:01trading is insane. As you can see in
0:03front of me right now, I have a strategy
0:05that is running. This is high-frequency
0:07trading, so as you can see, there are
0:08live buys and live sells happening on
0:10the hyperliquid asset here, but you
0:12could choose any asset to run an algo
0:14strategy on. The brain that ideated the
0:16strategy is Claude, but Jev is actually
0:18handling execution. And the reason for
0:20this is that Jev costs a fraction of a
0:22cent every time it thinks. So, instead
0:24of needing to use inference on Claude,
0:26which costs a lot of money and takes
0:28more time, Jev is amazing high-frequency
0:30trading because it takes less time to
0:33make a decision, meaning you have less
0:35lag or latency. As you can see here, we
0:36have a very low latency, 400
0:38milliseconds, which is great for news
0:40trading, which I'll show you later in
0:41today's video. And it's also enabling a
0:43higher level of accuracy. So, in today's
0:45video, I'm going to break down exactly
0:47how you can start an AI trading bot
0:49using Claude plus Jev, exactly how it
0:51works, and I'm going to give you the
0:52full setup prompt. So, by the end of
0:54today, you are going to have a working
What Is Jev?
0:56trading bot as well. So, what is Jev?
0:58Well, Jev is not a traditional LLM like
1:00Claude or ChatGPT, so it doesn't
1:02generate any text. Instead, the creators
1:05of Jev refer to it as a system-one
1:07model, which are essentially a class of
1:09AI models built to make fast, structured
1:11decisions that software can use
1:13directly. So, a system-one model
1:14evaluates a state and returns typed
1:17answers and probabilities. So, every
1:19single time you present Jev with a
1:20choice, it places that choice on a
1:22scale, assigns a probability score, and
1:25if that probability score aligns with
1:28your preset instructions, it can trigger
1:30an action. AKA, in this case, a trade.
1:32And you can see right now, we have a
1:34bunch of trades firing. Now, for full
1:36transparency, this is running on a paper
1:37account right now, so it is a real
1:39strategy, but it's running on paper. I'm
1:41going to show you how you could actually
1:42run this on a live account because it's
1:44the exact same setup to actually make it
1:46live. Live meaning using real money and
1:49not just using a paper account balance.
1:51But you can see it's generated already
1:52$15 in profit since we started recording
1:55the video. So, Jev shouldn't replace an
1:57LLM. The real power of Jev is actually
1:59combining it with an LLM. Claude and
2:01ChatGPT, they're smart. They're great
2:03for inference. So, if you present them a
2:05problem, they'll find you a solution. I
2:06use Astra and Opus for designing all of
2:09my backtests, all of my strategies, for
2:11taking in the data, working out what
2:13works and what didn't. But, where I'm
2:14now using Jev in my trading bots is for
2:17handling the classification tasks at a
2:19lower latency and a lower cost, so I can
2:22execute trades quicker at a lower cost.
2:24So, this is why it becomes such a nice
2:26complement alongside an LLM, because I
2:28can use the LLM for open-ended reasoning
2:30and generation, and I can use Jev for
2:32fast structured decisions to actually
2:34execute trades. And for a high-frequency
2:36trading strategy, this is very powerful,
2:38because with high-frequency trading and
2:40news trading, you need very short
2:42response times, and you need to classify
2:44things very quickly. In terms of news
2:46trading specifically, it's all based on
2:48probabilities. If you're trading based
2:49on a headline that comes out, you need
2:51fast classification. You're talking in
2:53the milliseconds in terms of getting an
2:54edge. So, you can actually place a trade
2:56while there's still an edge on the
2:57table. So, essentially, you'll work with
2:59your LLM to develop the full strategy.
3:01So, pricing and sizing, risk limits,
3:03stop-loss, what exact strategy you want,
3:06and then you'll use Jev to take those
3:07variables and assign a probability to
3:09them, which then triggers a trade. And
3:11that's the engine which is powering this
3:12strategy in front of you. Now, if you're
3:14watching this video and you're like,
3:15"Oh, this is similar to Louis Jackson's
3:16video." It is. He actually inspired me,
3:19and going back one step before that, I
3:21follow Roan on X who comes up with
3:22amazing strategies, and he actually, I
3:24think, posted originally. So, I've taken
3:26inspiration from both of them, but I've
3:28added my own twist. I've made some
3:29improvements to Louis's engine, and I'm
3:32also going to show you another example
3:33in this video which neither of them
3:35showed, which is around news trading.
3:37And why this can be effective for
3:38actually setting up automated news
3:40trading. I've actually developed an
3:41engine which I'll show you today, which
3:42you can build yourself with a one-prompt
3:44setup guide for news trading. And I
3:46think that's where Jev's going to give a
3:47lot of people an edge. But, make sure
3:48you check out Roan if you're on X. Make
3:50sure you check out Louis if you're on
3:51YouTube. They're fantastic creators who
3:52are also deep in the algo trading space.
3:54And if you don't know much about me,
3:56I've been building trading bots since
3:572023. I think I was one of the first
3:59people on YouTube to put out videos
4:00about trading bots. I remember when I
4:02was doing strategies, backtesting Pine
4:04scripts on the old ChatGPT. We are
4:05progressing so fast now. So, I'm trying
4:07to keep you guys in the loop. So, make
4:08sure you subscribe because me and my
4:10team are constantly making tweaks and
4:12changes based on the new models that are
4:14coming out, which are much smarter, and
4:16based on the new tools coming out, which
4:17are making things much quicker. And I
4:19think there's just such a massive edge
4:20whether you're a trader or whether
4:21you're an investor implementing this AI
4:23technology into your workflows and
4:25systems. So, to set this up for
4:26yourself, all you need to do is join my
4:28free school community, and that's where
4:30I'm going to leave the one prompt setup
4:32guide. So, if you click on classroom,
4:33free market assets library, and then
4:35scroll down to the latest video. It
4:36should be down here depending on when
4:38you're watching it. You can then claim
4:39the .md file, which will be available
4:41once this video is uploaded. And that MD
4:43file is a starter prompt. So, it
4:45contains, and we'll keep this updated
4:47for weeks after this video comes out to
4:48make sure that it works for you guys.
4:50The full starter setup prompt that will
4:52build the Jev architecture for you. So,
4:54it will install Jev. You will need to do
4:55it on Vercel. But, my starter prompt
4:57will walk you through exactly what you
4:58need to do. So, you don't need to figure
5:00it out yourself. What it also contains
5:01is a spec for the dashboard, which I
5:03refined. I made some improvements on it,
5:05which is this strategy engine that
5:06you're seeing here where you can just
5:08plug in any strategy into the back end,
5:10which I'll get into in a second. You can
5:11do it on Claude. You can actually also
5:12do this on Codex. Drag and drop the
5:14starter prompt, once again, for free
5:16down below in my school community. Click
5:17enter, and then it will start up for
5:20you. And let me know in the comments how
5:22it works for you because we will be
5:23making tweaks as well over the coming
5:25weeks. The team will just update the
5:26prompt, and we'll just leave the latest
5:28version of the prompt in the school
5:29community at all times. Maybe at this
5:31stage in the video, you're still
5:32wondering, "Oh, Miles, is Jev just a
5:34gimmick? We hear about all these new AI
5:36tools all the time, and everyone always
5:37hypes up the latest model releases."
5:39But, I'm going to tell you right now,
5:40this genuinely is a game-changer for
5:42both trading and business workflows. So,
5:44I'm going to put out a business video on
5:45AI Edge about how it's actually changed
5:47how I run my business because it's the
5:49first time that AI can actually make
5:50decisions cheaply and quickly. And those
5:52are prerequisites that are so important
5:54for trading execution. So, let me
5:55explain to you very simply how this is
How The Strategy Engine Works
5:57working. I've chosen a strategy on
5:59Hyperliquid. This is an example strategy
6:01for this video that I came up with with
6:03Claude, but what you could do is you
6:04could backtest your own strategies and
6:06you could implement them into the system
6:08that I'm going to give you. So, I'll
6:08show you how to do that in a second.
6:10But, essentially this is a real market.
6:11This is the Hyperliquid price right now.
6:13You could do this on Bitcoin. You could
6:14even do this on stocks. I'll show you
6:16how to connect this to a live account
6:17very shortly. And essentially every
6:19single dot is Jev making a decision. So,
6:21it's either a buy decision or a sell
6:23decision. And Jev is looking at three
6:25criteria before making every call. Who's
6:27buying? Who's selling? Which way price
6:29is moving? And you can train based on
6:31what strategy you give it the
6:32prerequisites or the questions that you
6:34want Jev to ask in order to assign a
6:37probability and then make a buy
6:38decision. I think this has applications
6:40beyond high-frequency trading like this.
6:42I think for investing it could also be
6:44valuable because you could essentially
6:46trigger Jev to make an adjustment to
6:48your portfolio if there is a variable
6:50that changes. For example, smart money
6:52starts exiting. You could have a
6:54specific investor type or wallet type if
6:56it's an on-chain asset trigger a
6:58probability that changes your material
7:00position if Jev picks up on it. Or you
7:02could have momentum-based criteria. If
7:04momentum is moving to aggressively in a
7:06certain direction or we have a
7:07volatility regime shift, it could make a
7:10tweak to your notional position sizing.
7:12So, the possibilities are really
7:13endless. Hopefully this video opens your
7:16eyes to what you can do at least on the
7:17high-frequency trading front, but I
7:19don't want this to limit the potential
7:21of what you could do with a tool like
7:22this. I mean, we're making decisions as
7:24you can see here in like 300, 400, 500
7:27milliseconds. This is extremely quick.
7:29It's way quicker than using Claude as
7:31the decision-maker using its inference
7:32cuz it literally can take 5 seconds.
7:34Like, the difference in high-frequency
7:36trading, in news trading of a few
7:39seconds is astounding versus like 400
7:41milliseconds, 300 milliseconds, which is
7:43why this is so important because you're
7:44compressing the speed down. I think the
7:46application for news trading is massive
7:48as well. As you can see in front of you,
7:49I have a news dashboard, which is
7:50literally getting live news right now.
7:52It's assigning it a probability, and
7:54then Jev is working out on a
7:55probabilistic basis, is it bearish or
7:57bullish? And then you could have this
7:58automate a particular positioning either
8:01on a scalp trading basis like the
8:03example in front of you or on a even
8:05high time frame basis in terms of high
8:07time frame portfolio management. I'll
8:09circle back to this in a second. So,
Finding A Strategy
8:10once you have the technical
8:11infrastructure set up, what you need is
8:13a strategy. As I said before, I'm
8:15running a paper trading strategy, which
8:16was based on some rough logic, but if
8:18you want to find a strategy that is
8:20going to work well with this, you need
8:22to do backtesting. So, step two, after
8:24you have Jev set up using the one prompt
8:26guide, is to go and find a strategy.
8:28Now, there are many ways to do this. I
8:29have other videos on this. There are
8:31many free available tools that you can
8:33use to find strategies, but what I'll
8:35typically do is I'll use a backtesting
8:37engine. So, this is actually one that
8:38I've built myself, and maybe we'll
8:40release it at some point in the future,
8:41but right now I'm just using it for
8:42myself, where I can actually design
8:44backtest. So, I can design a backtest on
8:46Bitcoin, for example. It will recommend
8:48me strategies. I can tell it the type of
8:49strategies I'm looking for, and then it
8:51could run multi-hour backtests to go and
8:53find a bunch of strategies, and then I
8:55can put them into TradingView, and I can
8:57try and filter the ones that look
8:58legitimate, and then I can start running
9:00forward tests on them. Once the forward
9:02tests come back profitable in the
9:04out-of-sample period, then what I can do
9:06is I can set it up with Jev and start
9:08paper trading. Once I've done paper
9:09trading for a certain period of time,
9:11and I'm confident the strategy is going
9:12to work, then I can make it a live
9:15trading strategy with real money, and
9:16I'll show you how to do that in a
9:17minute. The reality of strategy
9:19selection is that there's no magic pill
9:21for this. It is 99% of strategies lose
9:24money. It is possible to find profitable
9:26strategies, but what you need to do is
9:28run hundreds or thousands of backtests,
9:30which can be automated with a
9:32backtesting engine like this. You need
9:33to find a strategy that looks good. You
9:36can ask Claude and use these providers.
9:38That's what these models are really good
9:39for, the inference side of things, to
9:41determine why a strategy's working, why
9:44it's good, why it's profitable, and
9:45what's wrong with it, refine it, put it
9:47into TradingView. This is what I do lots
9:48of videos on, so make sure to subscribe.
9:50This video is mostly focused on Jev. The
9:52strategy hunting part I have many other
9:54videos on, and I'll continue to teach
9:55this in my school community, so make
9:57sure you join my school community, as
9:58well. And then once you find outlier
10:00strategies, you can then start running
10:02them in a live environment. Now, the
10:04problem with high-frequency trading,
10:05specifically for Jev, is that the fees
10:07can chop you up, because remember you
10:09are paying a fee, a maker-taker fee,
10:11every time you execute a trade. The way
10:13to think about Jev is it's like a coach
10:15that's on the sidelines. All it's doing
10:17is defining a probability and screaming
10:19out, "Buy! Sell!" It's basically just
10:22determining how short it is. But the
10:23code that you write, the strategy that
10:25you come up with, with the LLM, that is
10:27the rulebook that the game is being
10:29played on. Now, Jev doesn't cost money,
10:31so, you know, if it shouts at the
10:32players, that's not actually costing you
10:34money. You can get it to give as many
10:36probabilities as you want. What's
10:37costing real money is the strategy side
10:39of things. That's why you want to do the
10:41backtesting beforehand, and then you can
10:43set up a sustainable strategy that Jev
10:45can just implement. And I know some of
10:46you might be watching this video, like,
10:47"Okay, Miles, just give us a profitable
10:49strategy." The reality is that you need
10:51to test things out yourself, because
10:52there's no universal strategy which is
10:54going to make everyone money. Now, at
10:56the moment I'm running multiple forward
10:57tests. Some are losing money, and I'm
10:59having some that are exhibiting great
11:00results. I'll make videos on them when I
11:02feel like the time is right. What I
11:04would tell you today is set this system
11:06up, follow the steps that I've showed
11:08you, and I'm about to show you how to
11:09make it live. Go use a backtesting
11:11engine. If you don't have access to a
11:13custom engine, you can go into Claude
11:15code, you can ask it to create a
11:16backtesting engine harness, and you can
11:18get the latest models, for example, Opus
11:205.5, which is a very smart model to
11:22start backtesting strategies. You can
11:24also find strategies. I did a whole
11:25video on this, I'll link it below, on
11:27how to find strategies on Quantpedia and
11:29NFX, and then you You look at the
11:30out-of-sample results, and then you can
11:32paper-test the forward results, and
11:33start paper-testing the stuff with
11:35today's system. So, my number one
11:36recommendation would be to not actually
11:38concern yourself with the strategy too
11:39much. I think a lot of people, they want
11:41to find the ultimate strategy, but
11:43really what you need is the
11:44infrastructure first. So, learn how to
11:46backtest strategies, grab a strategy,
11:48and then implement it on paper trading,
11:50so not real money, so you can actually
11:52learn how to do it, and then if it has
11:53results on paper trading, then connect
11:55it to real money. Something that I built
My News Trading Engine
11:57that I haven't seen many people using
11:58Jev for, but it's a great application of
12:01it, is the ability for Jev to decipher
12:03real-time news headlines. So, if you
12:05feed it a Bloomberg, a Trivela, a
12:07Reuters, you know, you can get free
12:09sources like Yahoo Finance. The problem
12:10is that it won't be as fast, so you're
12:12already eroding edge there. So, Jev is
12:14like helping you speed up edge on
12:16automation. So, you also want to have
12:17like a bit of edge on the feed as well.
12:19So, you have to plug in a fast news
12:20source. The more you pay, the faster the
12:22news source is going to be. You have Jev
12:23reading that. It does it in a fraction
12:25of a second. It's asking, all right,
12:26what coin, stock, or asset is being
12:29referenced? Is it going up or down? How
12:31big should we size? Is it bullish or
12:32bearish? And then you can use that to
12:34automate execution with preset
12:36parameters. This is a very fun test that
12:38I'm running right now. I've been running
12:40it for the past couple of days, but it's
12:42going to take, I think, a couple of
12:44months for me to get the real data as to
12:46whether you can develop a strong edge
12:48news trading with Jev. My hunch is that
12:49you can if it's optimized correctly, but
12:51just like I said before, these
12:52strategies need refinement. These aren't
12:54just things that you can just like set
12:56up overnight. Oh, it's a magic money
12:57printer. Nothing's a money printer.
12:58Discretionary trading also takes a long,
13:01long, long time, arguably longer to
13:02master. So, I think it's good to be
13:04realistic with you guys about what AI
13:05trading actually is. It's not
13:07get-rich-quick, but if you can find the
13:09right strategy, you can make sustainable
13:11edge over time. And it's a compounding
13:13game. I have some assets in my AI
13:15trading bots. I have some assets that I
13:16trade with myself, so discretionary
13:18trading. I have assets that I buy and
13:20hold longer term. Diversification is
13:21always the best approach, but the reason
13:23I'm going so deep on trading bots is
13:25because I believe by being at the
13:26forefront of this, the edge that is
13:29going to be created over the next couple
13:30of years is monumental considering how
13:33good this technology is getting and so
13:34many people just don't understand how to
13:36apply this to investing and trading yet.
13:38That in itself is an edge, whereas the
13:40markets overall, I find are already so
13:42arbitrage, it's much harder to get edge.
13:45So, that's the entire reason I'm diving
13:46really deep into AI, but you can see in
13:48front of you, this is the newsroom that
13:49I created and this is the system that I
13:51just showed you in action. So, you have
13:52the headline coming in, you have Jev
13:54reading the headline, assigning whether
13:56it thinks it's neutral, bullish, or
13:57bearish, and then occasionally a trade
13:59signal will fire. And it's doing it
14:01extremely quickly because it doesn't
14:03have that chat interface inference, it's
14:05just assigning a probability and you're
14:06good to go. So, that's essentially how
14:08Jev works. It's assigning a match based
14:10on a preset set of variables that you
14:13will define with an LLM prior. And this
14:15is why Jev is actually really good in
14:16business as well because if you're
14:18scanning a lot of data, so if you're
14:19doing SEO or you're doing business
14:21development, it can take a lot of data
14:22in and it can assign a match to a
14:24prospective client, to a piece of
14:26information on the internet, and it can
14:28label and categorize that data really
14:30quickly and it costs you a lot less to
14:32do so. So, anything that requires mass
14:34data consumption and mass
14:35decision-making is where you want to be
14:37using Jev. So, now for the fun part. How
Connecting An Exchange
14:40do we actually connect and exchange so
14:42you can start trading? Well, you've got
14:44two parts, I'll go through both. The
14:45first one is on Alpaca. So, Alpaca has
14:48paper trading, it also has live trading.
14:50You have crypto, you have stocks. It is
14:52slightly higher fee, but because you can
14:54access multiple asset types, it is quite
14:56convenient and I'll be doing lots of AI
14:57experiments on Alpaca. You simply want
14:59to take your key, your API key, and this
15:02will all be part of the setup prompt,
15:03put it into Claude code when you're
15:05setting it up, and put it into the .env
15:07file that Claude code will prompt you to
15:09set up to connect your API key, and then
15:11Claude, which is the brain in this
15:13instance, will feed the data to Jev and
15:15it will ping a signal to your paper
15:17trading account in this case, and you
15:19can switch it to live trading once you
15:20want to use live trading. It's a simple
15:22way to do it on Alpaca, it's all part of
15:23the setup prompt. Path number two is
15:25more complex, but more sustainable if
15:28you're actually trying to run this at
15:29scale. So, path one is good if you want
15:30to test it out. Path two is operating an
15:32always-on server, so you could go onto
15:34Hosting or for example, get a VPS. I've
15:37got a discount for Hosting or below if
15:38you ever want to start a VPS, by the
15:39way, it's better than just going through
15:41the website, helps out the channel, but
15:42also gives you a discount. That
15:43essentially enables you to get an
15:44always-on server because the problem
15:46with Claude code is that the second your
15:47computer goes to sleep, it's no longer
15:50doing inference. Now, Jeff technically
15:52still is because Jeff, in my case, is
15:54deployed through a reversal, so that is
15:56in the cloud, but if you need inference
15:58from Claude on any decision-making, then
16:00you're going to want an environment
16:02where it's always-on. So, that's why I
16:03recommend having a VPS. Or you can use
16:05a, you know, if you have a Mac Mini or
16:06you have a local PC that can always be
16:09on, then that's going to be great
16:10because then you can just have a session
16:12that never closes. That way you can
16:14connect it to Claude as the brain, and
16:16then the brain can fire off signals to
16:18an exchange. In this case, an exchange
16:20could be Bybit. I believe I also have a
16:22special deposit bonus down below if you
16:24want to sign up for an exchange account.
16:25Bybit has pretty much every crypto, much
16:27better depth and lower fees than Alpaca,
16:29alongside commodities. I think it has a
16:31lot of perp stocks now, so that's
16:33actually my preferred option to Alpaca
16:34in in many cases. I think they also have
16:36paper trading, so you can connect it
16:37directly through their MCP. You just
16:39need to connect your API to Claude. The
16:41other thing you can do is you could use
16:43in between Claude and Bybit, you could
16:45have something like Trigger Trade, which
16:47is just triggering it. That's a website
16:49that enables you to just trigger based
16:50on a Pine Script in the cloud, which
16:52reduces the need for a VPS because you
16:54just give it the Pine Script, it just
16:55executes for you on Bybit. But, if
16:57you're trying to use Jeff, then that's
16:58not as effective because the idea is to
17:00have an integrated autonomous system
17:02that you have sovereignty over. But, the
17:03reality is if a strategy is really just
17:06plug-and-play and it's already been
17:07verified using something like Trigger
17:09Trade is great. If you want more
17:10sovereignty over it, and if you have a
17:12strategy that's more adaptive, or you're
17:14just running a test to see, you know, if
17:15Claude can self-adapt, then you're going
17:17to need like an always-on device. So,
17:19these are the two paths. They're both
17:21outlined in the setup prompt, so it'll
17:22help you set them up. The other
17:23important thing to set up are risk
Setting Your Risk Rules
17:25rules, so max position, daily loss, kill
17:27switch, and potentially manual approvals
17:30for certain types of trades. You can
17:31also set up an alert system. This is
17:32what I do. So, on my iPhone, I get
17:34notifications when a trade enters or
17:37exits. Obviously not high frequency, I'd
17:39be getting spammed, but especially on
17:40the lower frequency, higher timeframe
17:42stuff, I'll get alerts, so I can review
17:44things. On these strategies where I'm
17:45using more money, so bigger orders, I
17:47will actually still do manual approval.
17:49So, I'll get a message on Telegram,
17:51it'll say, "Are you okay to go through
17:52with this trade?" I check it quickly, I
17:53say yes. This is for like big high
17:55timeframe swing when there's big stakes
17:57involved, cuz I know people, you know,
17:58are still at the stage, especially if
18:00you're testing out a strategy, if you've
18:01just gone from the paper forward test to
18:03a live money test, sometimes, especially
18:05if it's big high timeframe stakes, you
18:07don't trust the LLM to do it 100%. I
18:09think we're going to get to a place
18:10where we do, but that's not the reality.
18:12Hallucinations still exist, so you can
18:14have that fail-safe still. But, the tech
18:16is getting a lot better, and it's so
18:18much better than it was just a year ago.
18:19So, that's it. That's how you can use
Outro
18:21Jev in conjunction with an LLM like
18:24Claude to do some pretty amazing things
18:26when it comes to low latency trading. If
18:28you want the setup prompt, it's in the
18:30school community. Just go into the
18:31classroom, go to the free assets
18:32library, claim it, drop it into Claude.
18:34Let me know in the comments if it worked
18:36for you, if there's anything you want to
18:37change. We'll read the comments, and
18:38we'll make adjustments to it to ensure
18:40that it continues to improve over the
18:42coming weeks. Shout out to Rowan, shout
18:43out to Lewis for their inspiration for
18:45this video, and I will see you in the
18:47next one. Have a lovely rest of your
18:49day. Peace out.