Claude Just Changed the Stock Market Forever! (Tutorial)

Brief Summary

The video explains how a tool called Claude revolutionizes stock trading by utilizing live market data and automating trades based on important insights, including trades made by influential market players like Wall Street investors and U.S. politicians. The content is divided into three levels, detailing the setup process, building automated trading bots, and implementing advanced trading strategies.

  • Claude uses live market data for informed trading decisions.
  • The video walks through setting up Claude with Alpaca and teaches building trading bots using various strategies, including the wheel strategy and options trading.

Claude Just Changed Stock Trading Forever

Claude has completely transformed stock trading by accessing live market data and tracking transactions made by prominent investors and politicians. The video outlines how Claude automates the trading process, enabling users to trade effectively without needing extensive technical knowledge. There are three main levels explained: setting up Claude, building a copy trading bot, and implementing options strategies, all aimed at making stock trading accessible for everyone.

Context

To provide context, the speaker shares their background with JP Morgan, highlighting the challenges faced by regular traders compared to institutional ones. Key aspects include the type of data available, execution speed, and decision-making intelligence. Claude seeks to bridge this gap by offering easy access to critical information and automated trading capabilities, which were previously available only to those who could afford expensive tools.

Level 1: Setting Up Claude & Alpaca

In the initial setup, Claude requires a trading platform and access to decision-making data. The speaker introduces Alpaca as a brokerage that allows easy connection via API. The setup process includes creating an account and utilizing paper trading, which involves using fake money in a real market scenario to mitigate risks while practicing trading strategies.

Disclaimer + What Is Paper Trading

A disclaimer is provided stating that the video is not financial advice and emphasizes that all trading demonstrated will be paper trading, meaning no real money is at risk. Paper trading allows users to test strategies and gain experience without financial consequences, ensuring a safer learning environment.

Step 1: Download the Claude Desktop App

The first step to using Claude involves downloading the desktop app, which is compatible with both Windows and Mac. The speaker guides viewers to the installation page and highlights the importance of ensuring the app is updated for the best performance. The installation is straightforward and doesn’t require extensive technical skills.

Step 2: Create Your Alpaca Brokerage Account

Viewers are shown how to create an Alpaca account, outlining the necessary information to sign up. Upon creating the account, users will have access to a dashboard where they can manage their trading activities. The focus remains on the paper trading account, allowing experimentation with up to $50,000 in simulated capital.

Generating Your API Keys

The next step involves generating API keys required to integrate Claude with the Alpaca account. The speaker explains how to locate and create these keys, emphasizing that they are essential for enabling Claude to place trades on behalf of the user. There are three parts to the API key which Claude will utilize when accessing the brokerage account.

Making Your First Trade With Claude

After setting up the API keys, the speaker demonstrates how to execute a test trade using Claude. By providing commands to buy one share of Apple, the audience can see real-time execution within the Claude app. The success of this test indicates that the connection with Alpaca is functioning correctly.

Saving Your Credentials

The process of saving credentials securely for future trades is discussed, allowing Claude to operate more efficiently without needing to re-enter keys. This step reinforces the convenience of using Claude as an automated trading assistant and prepares users for setting advanced strategies in the following levels.

Level 2: Building an Automated Trading Bot

The speaker explains how to evolve Claude into a fully autonomous trading bot that follows specific strategies. By comparing the trading strategy to a thermostat, the video outlines how Claude will continuously monitor market conditions and execute trades based on preset rules, removing the need for constant human oversight.

How the Trailing Stop Strategy Works

Claude's first implemented strategy is the trailing stop, which allows traders to set dynamic sell limits that move higher with increasing stock prices. This technique protects profits while unlocking gains, along with ensuring the trader can exit the position when losses hit predefined thresholds. The strategy provides a balance between risk management and profit maximization.

Setting Up the Trailing Stop Bot on Tesla

The tutorial proceeds to set up a trailing stop strategy specifically for Tesla. The speaker details how to configure Claude to buy shares and implement the trailing stop mechanism for ongoing monitoring and adjustment based on price movements, thus automating profit protection.

Scheduling Claude to Run Automatically

In this section, the focus shifts to scheduling Claude to run trades automatically during market hours. The speaker showcases how to set timers for Claude to consistently check market conditions and enforce trading rules, making the process more efficient and hassle-free.

Testing Different Scenarios With Claude

The speaker role-plays different scenarios to illustrate how Claude would respond in various market conditions. By actively engaging with Claude, users can proactively adapt their strategies based on expected market movements and ensure the bot accurately reflects their trade management style.

Adding Ladder Buys to Your Strategy

Here, the speaker introduces the concept of ladder buys, which allow users to accumulate more shares at lower prices as a stock drops. This strategy aims to reduce the average cost per share and capitalize on market dips, thereby enhancing profitability using Claude's automated capabilities.

The Problem With Gut Feeling Trading

The discussion pivots to the dangers of relying on instinctual trading decisions. Emphasizing the need for data and analysis, the speaker stresses that successful trading does not come from gut feelings but from informed decisions. The subsequent strategies will enable Claude to operate solely based on market intelligence.

What Is Smart Money & Who Are the Whales

The speaker explains the concept of smart money, referring to major players in the market, known as whales, who execute significant trades backed by extensive research and insights. Understanding their trading behavior can provide opportunities for smaller investors to make informed decisions and benefit from the same tactics.

How MCP Plugs Claude Into Insider Data

Next, the video describes MCP, a service that aggregates insider trading data from politicians and hedge fund strategies. This service allows Claude to access valuable information that can aid in decision-making, effectively bridging the information gap previously faced by retail traders.

McCaul vs S&P 500 — The Results

The speaker showcases results comparing the performance of a trading strategy based on U.S. Congressman Michael McCaul against the S&P 500 index. The performance highlights the advantage of leveraging insider trading insights and the considerable returns it can yield compared to a passive investment approach.

Level 3: Setting Up the Copy Trading Bot

In the third level, the video outlines how to set up a copy trading bot, allowing Claude to mimic successful trades made by recommended politicians or investors. This strategy builds on the previous levels by automating the process of following smart money and utilizing significant market moves.

Using Capitol Trades to Track Politicians

The speaker introduces Capitol Trades, a service that helps track stock trades made by U.S. politicians. By using this service, Claude can automate the process of copying successful trades made by prominent politicians, effectively utilizing the insider advantages they possess.

Claude Picks Michael McCaul Automatically

In this section, Claude autonomously selects Michael McCaul as a target for copy trading. The algorithm identifies McCaul based on recent trading activity, showcasing Claude's ability to analyze data and make strategic choices that benefit the user.

Level 3: Options & The Wheel Strategy

The speaker shifts focus to options trading, describing it as a more advanced but profitable aspect of trading strategies. Understanding options provides the basis for implementing the wheel strategy, which can help traders generate income regardless of market direction.

What Is an Option? (Simple Explanation)

The concept of options is broken down in simple terms. An option is essentially a contract that provides the right, but not the obligation, to buy or sell a stock at a specified price before a certain date. This section lays the foundation for understanding advanced strategies and risk management in stock trading.

Call Options Explained

Call options are detailed further as a means for traders to speculate on stock price increases. Users can buy a call option at a set price, allowing them to capitalize on market movements. The video emphasizes the potential for profit while highlighting the risks involved if the price does not move favorably.

Put Options Explained

Put options are explained as tools that allow traders to hedge against price declines. This section outlines how owning a put option provides a safety net by allowing the sale of a stock at a predetermined price, bolstering risk management strategies.

How Selling Options Makes You the Insurance Company

The video transitions into discussing the strategy of selling options, equating it to acting as an insurance provider. Sellers collect premiums from buyers, with a high likelihood of profits generated when options expire unexercised. This methodology brings a new income potential, driving the discussion toward the wheel strategy.

The Wheel Strategy Step by Step

The wheel strategy is described in detail, illustrating how traders can continuously generate income by selling puts and calls. Each stage involves setting up trades that capitalize on market movements, ensuring that the trader profits regardless of market direction. This comprehensive approach lays the groundwork for managing trades through Claude.

Why Most People Fail at the Wheel

The video notes common pitfalls that traders face when trying to implement the wheel strategy. Issues such as emotional trading and poor decision-making hinder effective execution. By automating the process with Claude, traders can circumvent these challenges and maintain a disciplined approach to trading management.

Building the Wheel Strategy Bot With Claude

Lastly, the speaker demonstrates how to set up Claude to execute the wheel strategy efficiently. By programming Claude to manage options trading, users can automate the collection of premiums and maximize their returns while minimizing manual oversight. This final step encapsulates the overall theme of the video, emphasizing the power of automation within stock trading.

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Transcript

Full transcript of “Claude Just Changed the Stock Market Forever! (Tutorial)”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.

0:00 Claude has changed how we trade stocks forever, and it's because of this new skill that lets it access live market data, track what Wall Street whales and US politicians are buying, and use that to play the stock market with all that information automatically. I've actually been using this for the past couple of weeks, and it's completely changed how I think about trading. So, in this video, I'm going to be breaking down how you can get started in three levels. So, first, we're going to get set up. I'll walk you through the basics of how trading works, and we'll get Claude and all the tech set up. Then, we're going to be building a copy trading bot. I'm going to be showing you how to track what Wall Street whales and US politicians are buying, and have Claude copy their exact moves automatically. In level three, we're going to get into options. I'll break down what they are, how they work, and then we're going to be building a bot that runs one of the most consistent income strategies in

0:45 trading called the wheel strategy. And even if you've never bought a single stock before or have zero technical background, you'll be able to do this because all we're going to be doing is simply speaking to Claude. Let's get into it. Okay, before we get into anything, I need to give you some context on why I'm actually making this video and why this matters. Because for the first few years of my career, I used to work at JP Morgan. And I actually got to see how institutional trading works up close. And the biggest thing I took away from that is the gap between Wall Street and regular people comes down to just three things. First, it's the data. So, imagine like a poker game, and you're sitting at a table with your two cards trying to figure out what to do. But the person across from you can see every card on the table and every card in your hand. You'd probably never sit down at that table, right? And that's the stock

1:31 market. That's what you're playing against every single day. Wall Street knows when a billionaire places a massive bet on a stock. They know when a senator buys shares right before a major announcement. They see where the money is moving before you even hear about it on the news. And by the time you do hear about it, they've already made their money. So, you're stuck trading against people who have the information you don't have any access to. And unfortunately, that's the game. That's the kind of access that used to cost hundreds of thousands of dollars a year. But now, I'll show you how to access that kind of information with a single click of a few buttons. Second is execution. Say you spot the perfect trade, but you're at lunch or you hesitate for like 10 minutes and the window closes. Wall Street doesn't deal with that. They have systems watching the market and placing trades around the clock automatically. And luckily, Claude

2:16 can do that, too. Which brings us to number three, which is intelligence. Having the data and the speed really means nothing if you don't have a plan. The big guys have teams reading all that information and making calculated decisions. And to do all of that, you need to buy expensive tools. And if you couldn't afford the tools, you were locked out. But with Claude and these new skills, that barrier is gone. And I'm going to show you how to set all of that up. All right, let's build this thing. I'm going to be explaining everything as we go. So, if you're brand new, just follow along. So, if our goal is to get Claude to trade stocks for us, to do that, Claude needs two things. It needs somewhere to place the trades, and it needs the information to decide what to trade. Let's start with the first one. And actually, back in the day, if you wanted to buy a stock, you'd have to call a person on the phone and say

3:02 something like, I don't know, buy me 50 shares of IBM. That person was go to the stock exchange and make that happen for you. That whole system, the firm, the person, the access to the exchange, that's called a brokerage. But today, it's an app. You open up Robinhood or Fidelity or tap a button and you own a stock. That's the same concept with just no phone call. But here's where it gets interesting for us. Some brokerages actually let you skip that step entirely and connect it through code. And because Claude is so good at coding, that's what we need. Because we're not going to be the ones trading, Claude is. And we're going to be using a tool today called Alpaca. It's free to sign up, and it gives you API access, which is how we're going to get Claude to connect to it and place trades on our behalf. So, let me show you how to do that. Wait, but more importantly, before we get any further,

3:48 quick disclaimer, I'm not a financial advisor. This is not financial advice. I'm just showing you how to build cool stuff with AI. And everything we're doing today is in paper trading. And paper trading means that you're using fake money in a real market. So, it's the same stocks, the same prices, everything behaves the same way. You're just not risking a single dollar. Okay, so let's connect Claude to our brokerage. Okay, so to get started, what we're going to need first is the Claude desktop app, all right? So, I'm going to do Claude uh dot com {slash} download. And if you need any of these links, it's going to be in the link in the description below. If I'm going here, and you see you just want to download this app, and you can use it for Windows or Mac. But make sure you download the Claude desktop app, okay? All right, so

4:34 after you install the app, you'll get something that looks like this. Make sure your software or your Mac OS is up to date so you have everything available. And ideally, you have the pro or the max version of Claude paid for, okay? So, that's step number one. Step number two is we need to make our brokerage account. So, I'm going to go back into my browser, and I'm going to search up Alpaca. Uh And you can see Alpaca trading platform. And I'm going to go here, and I'm going to sign up. All right, so after you enter all your information and you go through, you're going to see you have this dashboard right here. And in this dashboard, if I go to the top left and I open this up, and you see I have an individual trading account.

5:21 But everything we're going to be doing is not with real money, it's with paper money. So, what we're going to be using is this paper trading account, okay? And you can, you know, if you want to make a new one, I'm going to say um trading Claude. And let's say we can give ourselves, I don't know, $50,000, okay? And save. And you can see right there, we're going to have a trading Claude account, and I'm going to click this. So, now I have $50,000 to essentially play with in the stock market, all right? Now, I'm going to show you how to get this connected with Claude. To get this connected with Claude, what we're going to do is I'm going to scroll down right here, and you see right here where it says API keys. What we want to do is hit generate new

6:08 API keys, okay? And you can see there's three things. Endpoint, key, and secret. We're going to need all three of these, all right? So, let's get Claude set up. So, I'm going to go back to my Claude app. And here, what I want you to do right now is hit this thing that says code, okay? It's the same thing, we're just going to be talking to it. But all [snorts] it is is a little bit of a different interface. Okay. So, cool. We see this little guy here, and that means we're good to go. And I'm going to do is right here, I want you to hit this button right here and hit a new folder. Okay. Because we want to keep everything we're doing organized, I'm going to go to documents, and I'm going to hit new folder. And I'm going to call it trading. Okay. So, now everything we do is going

6:56 to be saved into this trading folder, all right? Okay, I'm going to move this to the side. Now, what I'm going to do is I'm going to be pasting in right here this, then go back to Claude, and then say endpoint. I'm going to say key. Oops. Claude key. And then I'm going to say copy this one, and then go to Claude, and then say secret. Okay. Now, let's see if we can get our Claude to trade a simple stock just to make sure our connection is solid. And after our connection is solid, we'll build layers on top of that so we can actually get it

7:41 to do some really cool stuff, right? All right. So, what I'm going to be telling it is this. Hey. Um what I want you to do, I just gave you the documentation and my keys to connect to my Alpaca trading account. I'm just testing the connection right now. Can you please buy one share of Apple? I want to see it inside my account, all right? Great. So, all this is good. Uh right now, just to make it a little faster, I'm going to write here click sonnet because this is very easy command, and I'm going to hit go. All right, so it's saying the order is placed successfully. Here's the summary. Now, if I go back here, if I reload,

8:28 okay awesome. Uh great. So, you see I already bought a share of Apple. Now, you can trade by just talking to it. You'll be like, Hey, can you sell that share of Apple and then buy a share of Tesla? Great. Press workspace, and here. This is what I want you to do as well. Hey, can you make sure in this folder you save these credentials so I don't have to keep giving it to you when we want to trade. We're going to be using this account, and in this folder, we're going to be doing a lot of trades. Okay, so what we're going to do is because right here we gave it access to all the stuff, I want to make sure I don't have to keep giving it access. I'm just getting it to save these credentials inside a file. Right now,

9:15 Claude can trade, but it's trading blind. It doesn't know what to buy, when to buy, or why. It's missing the most important piece, which is strategy. So, let's get into that. In this level, we're going to turn Claude into something that runs on its own. So, basically a bot that watches the market, makes its own decisions, and based on the rules you set. And the first strategy we're going to make, you can think of it like a smart thermostat. Once you set the rules, if the room temperature, let's say, drops below 68° F, you're going to turn on the heat. If it goes above 75° F, you kick on the AC. That means you don't have to sit there fiddling with your phones, messing with the temperature all day. The thermostat does that all for you. It checks, it acts, and adjusts. And the bot is going to work exactly the same way. That means we're going to be setting some rules, and let me show you how this works by actually explaining the trailing stop

10:01 strategy, which is a really good strategy used by many different traders. Let me show you how the trailing stop strategy actually works. So, say you buy a stock at $100. Well, let's say we tell Claude, "If this drops to $95, sell it. That's your floor. $5 is the most you're willing to risk on this trade." Now, if the stock starts climbing up, and let's say hits 110, if it didn't go down, but your floor is still sitting at that 95, then you're exposed to a $15 fall. That makes no sense. So, what we want is Claude to move up our floor

10:46 to 105, which means if the stock dips and hits the new floor, you're still up $5 in profit, and you were protected the entire time. But, what if the stock drops right out the gate, right? Well, that means it would just hit $95, and you'd sell it, and you're out $5, and that's your loss. Now, here's the important part. You're not stuck. You've still got that capital. Claude can now take that money and goes looking for the next setup. Maybe it's the same stock a week later at a better price. Maybe it's a completely different opportunity. The point is you lost a small portion that you're okay to lose and risk. Basically, you live to trade another day. And ideally, we find trades like this. So,

11:34 let's say the stock keeps climbing, and every time it does, Claude is going to drag the floor higher and higher. You can never fall back to where you started. It's basically now going to sell at 110, so you get that $10 in profit, which is a 10% gain. That's a trailing stop. You set the rules once, and Claude follows them every second of the day. You're always protected, and you're always locking in the gains. So, when a trade doesn't work out, you move on fast with the most amount of money still in your pocket. Now, why am I telling you all of this? Because the worst thing you can really do is hand your AI a pile of money and be like, "Go figure it out." The rules aren't the limitation. That's the whole point. This

12:19 is how you take what you know, your instincts, your risk tolerance, your read on the market, and you encode it. The same rules are true here. Claude can execute thousands of decisions faster than any human. It's executing your decisions, just running at the speed and discipline that you never could on your own. That's what makes this different from just letting AI loose. And I'll show you how to set this all up in the next portion. And to set this up, it's actually really simple. So, I'm just back in my chat where I have been speaking with my Claude, and I'm just going to be speaking to it, right? And just to make it a little easier, if you guys wanted this, in my classroom, uh if you guys are already watching this, if you go to skills, you'll see I have a bunch of skills here. So, this is the prompt we're

13:04 essentially going to be speaking to our Claude, all right? So, let me just go to Claude, and right now, don't worry about it. If you want those docs, it's there, but you can follow along with me in this video. So, I'm just going to speak it to it. All right. So, I want your help to actually schedule a trailing stop strategy on, let's say, Tesla, right? I want you to buy Tesla using Alpaca paper trading account. Buy, I don't know, like 10 shares at the market price right now, and set up these rules. The floor, if the stock drops, let's say, by 10%, sell everything. That's my stop loss. I don't want to lose more than that on this trade. The trailing floor, if the stock goes up 10% from what I paid, move my stop loss up.

13:50 Maybe move it up 5% below the current price. Every time it climbs, move another 5% up the floor again. So, the floor only goes up, never down. And then, I want you to also ladder in. If the stock drops, let's say, by over 20, 30%, buy a bunch more shares, let's say, 10 more shares. If it drops by, let's say, 20%, buy 20 shares. This way I'm getting better prices on the way down instead of just losing money. And after you set this up, show me a summary of every order and right after you place it, so I can confirm this looks right. Okay. So, I word vomited some stuff there, >> [laughter] >> and um let this finish, and I'll show you what this looks like.

14:37 So, I see it just got done, and it says this is the current price. And if I go back to my Alpaca dashboard, I can see it set some price, it bought some Tesla, and then it even set a stop loss right here. Now, one more thing we need to do is make sure we go back here and be like, "Hey, can you set up during market hours every day that you're checking consistently when we need to move our floor up or need to make new stop losses or re-enter. Use the slash schedule to make sure we have that going." And set your own schedules. So, this just executed one trade. Now,

15:23 what I want is Claude to basically be alive and keep looping and checking on a schedule like, "Hey, are these trades looking right? Do I need to re-enter? Do I need to move my floor up?" All of that stuff. Normally, we would have to do it, but right now, with the command I just gave it, it should be able to do it on its own. Okay. So, it just got done, and it says literally Tesla trailing stop monitor, and it's going to be doing that every 5 minutes from Monday to Friday, 9:00 a.m., and it's going to keep checking. And just so you're clear, on the left-hand side, if you hit see this clock, if you hit this clock, it's a scheduled. And if you open it up, these local tasks are already going to be

16:09 running right here. You can see it already set the schedule for me. I didn't have to touch this, and if my computer is on, it's going to be running this on its own. Now, we have basically made a trading bot. Now, let's go through a couple different scenarios. Hey so just briefly and really quickly, can you tell me what would happen if, let's say, Tesla shoots up to $500 randomly. What would you do? And right now, I'm role-playing it just so you understand, and I encourage you to do this as well, so you understand what would happen in different scenarios, and what would it actually do. And if you do really need to change its thinking and thought processes

16:54 around, you just be like, "Hey, change this around, okay?" And right here, it's just done. It says, "If Tesla shoots to 500 on the way up, the trailing stops kick in, trailing activates, your floor moves up up up etc." And that's about it. Yeah. This is a really cool way to do ladder buys. Those don't trigger at all. You see, right now, I don't have any of them. So, I'm going to be like, "Can you think about what are good ladder buys, and make sure you set that up in the schedule and update the strategy inside our whole strategy of what we're trading right now?" So, as the price goes up, it buys in gradually, so we're always at somewhat of a profit, and we're pretty safe in

17:40 our buys. And just so you see, it even gave me the ladder levels of if it's -15%, it's going to buy 10. If it's 50%, it's going to buy 50. You can always change this around, but this is really cool. Now that me, without me having to do any of the stuff, Claude can just action it for me. Now, this is all great, but the thing is, we're still picking stocks ourselves. We choose Tesla because we like it, but that's a gut feeling. The biggest traders and the best traders in the world don't trade on gut feelings. They trade on information. So, in the next level, we're going to be showing Claude where the smart money is, so Claude can actually make informed decisions. But, what is smart money? Well, on Wall Street, there are people who move millions of dollars in a single trade.

18:26 When someone puts, let's say, $50 million into a stock, they didn't really just do that off a gut feeling or flipping a coin. They have a lot of research teams and a lot of private data. They know something. These people are called whales. And when these whales make a big move, it leaves a trail, like massive options orders, unusual volumes on a stock out of nowhere. And a group that does this a lot is, surprisingly, US politicians. But, the nice part is that the members of Congress are required by law to report their stock trades. The data shows that many of them consistently beat the market. They sit on committees, they regulate entire industries, they get briefed on policy changes before the public even hears about them. They know which companies

19:12 are about to get a government contract, and which ones may get investigated. But, you can see what they bought and follow them. And most people have no idea this data exists, but it's there, and Claude can read it. But, the thing is, we can't just tell Claude to go scour the internet for these hedge funds trades and congressional filings and all that. There's millions of data points hitting the market every single day. No AI can really browse its way through all of that. But, there are services that do this full-time. These companies are scraping and organizing all this data around the clock. And the data is sitting there waiting to be tracked and updated every day. And what we need to do is plug Claude into that. And that's what this new skill and MCP does.

20:00 Think of it like a power outlet. The electricity, the insider information, is running through those walls, and we basically plug our Claude into that so we can use it. These services have data flowing through their systems, and the MCP is the plug that connects Claude to their data. And once it's plugged in, Claude can pull from it anytime, it becomes a new skill, and Claude goes from being smart but working with nothing to being smart and seeing what the big players in the market see. Next what we're going to do is give our Claude the power to access these services, and it's going to be super easy. So, let's get into that. And just to emphasize why I'm so excited about this strategy I'm about to show you, this is me just backdating, let's say a

20:45 year ago, you were copying the same thing and the same strategy by copying the smart money. You can see, if you were following the S&P 500, you were just buying and holding it, you would have made around starting at a 50k account, you would have made around 57,750, which is around 15%. So, you would have made 15% more money. But, if you copied Mcaw, then you would have made 67,400 by the end of the year, which is a 34.8% return. You can see how these politicians have access to this insider information, and they can outcompete everybody. And that's what I'm going to show you how to do. And just to make

21:30 sure our strategies are organized, what I'm going to do is go to another paper trading account. So, right here, I'm going to use this Saman account. And I'm going to do the same thing. Okay? So, I'm going to hit generate keys. I'm going to take all of the stuff, or I can just copy and paste this. And then, I can go back to my Claude. And then, what I'm going to do now is make a new session. So, I'm going to hit new session, and I'm going to paste this in. And now, what I'm going to do is the service we're going to use to track these politicians, if you go to Google, I'm going to do Capitol Trades, and Capitol Trades is a free service that you can be using to see which politician is trading what and

22:16 what's going on. So, I'm going to copy this URL, I'm going to go back to my Claude and go right here. Okay. So, now, uh by the way, the prompts are going to be in the description below, but right now, hey. So, um I'm trying to set up a copy trading bot when I've also given you access to my Alpaca account. I want you to make a new folder inside this uh folder so we can have this running and have these schedules done. But, what I want you to do is number one, find a politician who has been having really good success in the stock market currently and is actively trading. And then, what I want you to do is copy their trades. Okay? So, set up your cron

23:03 jobs and your schedules so you're always looking and using Capitol Trades to see what they're up to, and copy those trades. Make sure you buy, sell, buy the same options that they knew, whatever you need to, just copy them, and then we're going to be tracking that over time. All right? And you're going to be using the Alpaca account that I just posted the image of. Right. I'm going to hit bypass permissions, enter bypass mode, and then hit enter. All right, that was super easy. Let me wait for this to finish, and we can see what's going on. Okay, so it just got done, and I see in my schedule it's already set a schedule to see what these [clears throat] politicians are doing. And then, I actually also asked it, "Who are you

23:49 copy trading and why?" And it chose Michael Mcaw. All right, very interesting. And why is basically Okay. >> [snorts] >> And why the algorithm picked him over the others? Because it seems like he is very active right now, and he's the top trader. Interesting. The trades may be slightly stale, but that's the nature of how they disclose. We still get a lot of gains because mostly Congress can buy like 2 years out or something like that. So, they don't do day trading, and they're not allowed to do it. That's why, even if we're a little late because we know about it later, we can still make those gains. And just to reiterate, you can see this is a simulation for the year if we started 1 year ago and did this exact

24:34 same thing. If we copied this exact same strategy, this bot would have made an extra 9,650 dollars in comparison to the S&P, which would have only made around $7,000. So, that's a 2.2x return over the S&P 500, and that's how these guys just stay so rich. It's kind of crazy. So, with that out of the way, now I'm going to show you the third strategy, which is a strategy that really advanced people use, which means you can get paid no matter which direction the stock moves. And to understand that, I'm going to explain how options work. Okay, so what is an option? Well, an option is basically a contract when two people agree to do a deal. And let me show you

25:20 this with something you already may know. Okay, so let's say you pay your car insurance company $100 a month. In exchange, you get the right to file a claim if something goes wrong. And if you crash, the insurance covers it, you're protected. And if nothing happens, they keep your 100 bucks. They're basically getting paid to take on the risk. Now, look at this exact same structure. What happens is you pay a premium to another trader where you get the right to buy or sell a stock at a locked price. Okay? And if the stock moves your way, you can exercise that contract and profit. If the stock doesn't move your way, the contract will expire, they keep your premium. It's the same deal, you basically paid for protection. They got paid for the risk. And here it

26:07 is, next to each other, row by row. It's identical. The premium, the right to act, the expiration date, and if nothing happens, the other side keeps your money. That's all an option is, insurance on a stock. Okay? And to dive in, there are only two types of options. A call option gives you the right to buy a stock at a locked-in price. Say Apple is at $200, you can buy a call option with a strike price of 210. That means if Apple goes to, let's say, 230 before your contract expires, you can buy it at 210 and pocket that $20 difference. If Apple stays below 210, your contract expires and you lose the premium you paid. That's your max loss. Think of it

26:53 like putting a deposit on an apartment, you'll pay $500 to lock in the rent for $2,000 for 30 days. If the rent price jumps to $2,500, you got a deal. If they don't, you lost that $500 deposit. And on the other side is a put option. The put option gives you the right to sell a stock at a locked-in price. Say you own Apple at $200, you buy a put option with a strike price of 190. If Apple drops to 170, you can sell it at 190 instead of 170. The put basically protected you from the drop. That's the insurance side. You paid a premium to protect yourself against the price drop. Why this is interesting is because with stocks and options, you can actually flip the table and become the

27:39 insurance as well. So, that is called selling options. So, when you sell an option, you basically become the insurance company. You're the one that's collecting So, someone pays you for a contract, and most of the time, that contract expires without anything happening, and you keep the money. And the cool part is the insurance companies make billions doing this. They collect premiums after premiums from millions of people and pay out on a small percentage of claims. The math basically works in their favor over time. And selling options basically work the same way, where you collect a premium up front, and if the stock doesn't hit the strike price by the expiration, your contract dies and you keep everything

28:25 you were paid. And the wheel strategy is built on selling options. You are the insurance company. You collect premiums at every stage. And let me show you how that works. Okay, so let's walk through the wheel strategy with a real example with, let's say, Tesla. So, Tesla is trading at $250. And let's say you really like the stock, but you're not paying 250 for it. You'd rather get it at, let's say, 230. So, if you sell a put at the 230 strike, and for making that promise, for saying, "I'll buy Tesla at 230 if the price drops there," someone is going to hand you $5 per share. That's $500 in your pocket right now just for agreeing to do a deal you

29:12 already wanted. Now, two things can happen. Tesla can stay above 230, which means the contract might expire, nobody makes you buy anything, and you get to keep the $500, and you can do it again the next week. The other scenario is Tesla drops below 230, and you have to buy it. But remember, you collected $500 before already. So, your real cost isn't 230, it's 225. You got Tesla cheaper than anyone else, and you wanted it anyways. Okay, so stage two, let's say Tesla does drop and you get assigned, which means you have to buy the Tesla shares. Now, you own 100 shares at an effective cost of 225. Most people would

29:58 be upset, but you're not because you set the price. You got paid to wait and you bought it at a discount, right? That's not a loss, that's a your plan working. Now, it's time for stage number two. Okay, now that we own the shares and they're sitting in our account, what we're going to do is we're going to sell a covered call, which means we will pick a 260 strike price. That means someone is going to pay us another $5 per share, which is another $500 for the right to buy your Tesla shares for 260. If Tesla stays below 260, that contract expires, you keep the shares and you keep the $500. And you can sell that call again the next week. This is cool because you're generating income from a stock

30:44 that isn't even moving. Because if Tesla does go above 260, your shares get sold, but look at the math. So, let's say you bought the Tesla shares at 225. You sold it at 260. That's a $35 per share in stock gains, plus the $5 you collected selling that put, plus the $5 you collected selling the call. That's $45 per share in total profit on 100 shares. That's $4,500. And here's the best part. Once your shares get called away, you go right back to stage one. You sell another put, collect another premium, and the wheel just keeps spinning. Every single rotation, you get paid. The stock can go up, down, sideways, it doesn't matter.

31:30 You're collecting income at every stage. The wheel strategy sounds great until you try to run it for yourself. You're picking strike prices based on your market conditions and all these other things every single week. Most people who learn about this wheel give up after a few weeks because management is what buries them. And the cool part about Claude and I'm what I'm about to show you is that Claude handles all of it, which means Claude itself can monitor the positions, pick expirations, and roll contracts when needed. Which means you just collect the premiums on a schedule and you'll check in, let's say, once a day. So, with that out of the way, understanding why Claude makes this so effective, let's set one up. Okay, so

32:15 for this we're going to be using the first trading Claude account. And I'm going to go back to Claude and you see I actually have a prompt right here that you can copy-paste. And just so you can follow along, I'll read it out to you, okay? So, what this is is basically I want you to run a wheel strategy on, let me see, Tesla using my Alpaca trading account. Stage one, you sell the puts, so you sell a cash-secured put on Tesla with a strike price around 10% below the current price. Pick an expiration two to four weeks out, collect the premiums. If the put expires worthless, sell

33:01 another one and keep collecting premiums. If I get assigned, I have to buy the stock, move to stage two. Stage two is selling the calls. Once I own the shares, sell covered calls with a strike price around 10% of above what I paid. Pick an expiration maybe two to four weeks out, collect the premium. If the call expires worthless, sell another. Keep collecting premiums. If my shares get called away, like sold, go back to stage one and start again. And the rules are never sell a put unless I have enough cash to buy the shares if assigned, and never sell a call below my cost basis, what I actually paid. And track my premium across all cycles and check my positions

33:46 every 15 minutes during market hours. Please set the schedule. If a contract hits 50% profit before expiration, close it early and give me a daily summary at market close, all right? Run this during market hours, do nothing outside market hours. Great. That's what that prompt was. Now, I'm going to hit enter and wait. But, that's about it. You're going to see after this is done, I'll show you in a bit, it's going to set the things in a schedule, it's going to keep running this, and I encourage you to maybe set up a paper trading account and then have a go at it, see how it will do. These are just some fun strategies that I've been playing with that I think have been pretty useful and super revolutionary of what we can

34:33 really do with Claude. But, you know, if you're watching this and you can see the power of Claude, but haven't used it before or you you tried it, but you're not sure how to get the most out of it, I'm actually putting together a full course that's going to walk through everything from scratch, how to set up Claude, how to use it, how to build projects like this one step by step. So, stay subscribed for that. And in the meantime, watch this video if you want to see me going deeper of any of these strategies or build something else together, join my Claude Club where we can do this and we'll have some fun.

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