The world of trading is evolving rapidly, and artificial intelligence (AI) is at the forefront of this transformation. A new player in the AI space, DeepSeek R1, has recently emerged, and it’s causing quite a stir—especially because it’s completely free. But the big question is: Is DeepSeek AI any good for creating trading strategies?
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In this article, we’ll dive deep into its capabilities, test its performance, and compare it to other popular AI tools like ChatGPT, Gemini, and Claude.
What is DeepSeek AI?
DeepSeek R1 is a free AI tool that has garnered significant attention for its potential to assist traders in creating, improving, and automating trading strategies. Unlike some of its paid counterparts, DeepSeek offers a cost-effective solution for traders looking to leverage AI without breaking the bank.
But does it deliver results? Let’s find out.
Testing DeepSeek AI: Easy, Medium, and Hard Challenges
To evaluate DeepSeek’s effectiveness, we put it through a series of tests designed to assess its ability to create trading strategies. These tests are divided into three levels of difficulty:
- Easy Difficulty – Convert an indicator into a trading strategy by defining buy and sell signals.
- Medium Difficulty – Improve an existing strategy by adding another indicator.
- Hard Difficulty – Create a completely new trading strategy from scratch with minimal input.
Easy Difficulty: Converting Indicators into Strategies
The first test involved using DeepSeek to convert the Bollinger Bands indicator into a trading strategy. The goal was to see if DeepSeek could generate a strategy with clear buy and sell signals based on the indicator.
Results:
✅ DeepSeek successfully created a Bollinger Bands strategy with no coding errors.
✅ When tested in TradingView, the strategy produced results consistent with those generated by other AI tools like ChatGPT and Gemini.
📌 Verdict: DeepSeek is capable of handling basic trading strategy creation with ease.
Medium Difficulty: Improving Existing Strategies
Next, we tasked DeepSeek with improving an existing Gann Channel strategy by adding the Stochastic RSI indicator. This test was more challenging because it required the AI to integrate new code into an existing strategy.
Results:
⚠️ DeepSeek required some manual intervention to fix a coding error related to function placement.
✅ Once corrected, the strategy performed well, producing a 2,000% profit with a 14% drawdown—a result comparable to paid AI models.
📌 Verdict: DeepSeek can improve existing strategies but may require some manual tweaks.
Hard Difficulty: Creating Strategies from Scratch
The final test was the most challenging: creating a brand-new trading strategy from scratch using only minimal input. We provided DeepSeek with the names of two indicators—Gann Channel and Stochastic RSI—and asked it to develop a strategy.
Results:
✅ The initial strategy yielded a 50% profit with a 19% drawdown—decent but not exceptional.
⚠️ When given more detailed input, DeepSeek improved its performance, producing a strategy with a 9% profit and a 21% drawdown.
🚀 Paid models like 01 outperformed DeepSeek significantly, generating a 300% profit with a 40% drawdown.
📌 Verdict: DeepSeek struggles with complex tasks but improves with better input.
How Does DeepSeek Compare to Other AI Tools?
Here’s a quick breakdown of DeepSeek’s performance against other AI tools:
| AI Tool | Easy Task | Medium Task | Hard Task | Overall Performance |
|---|---|---|---|---|
| DeepSeek R1 (Free) | ✅ Passed | ⚠️ Needed minor fixes | ⚠️ Needed more input | ⭐⭐⭐☆☆ (3/5) |
| ChatGPT (Paid) | ✅ Passed | ✅ Passed | ✅ Passed | ⭐⭐⭐⭐⭐ (5/5) |
| Claude (Paid) | ✅ Passed | ✅ Passed | ✅ Passed | ⭐⭐⭐⭐⭐ (5/5) |
| Gemini (Free) | ✅ Passed | ❌ Struggled | ❌ Poor results | ⭐⭐☆☆☆ (2/5) |
| 01 (Paid) | ✅ Passed | ✅ Passed | 🚀 Outperformed others | ⭐⭐⭐⭐⭐ (5/5) |
📌 Final Verdict: DeepSeek holds its own among free AI tools but falls short compared to premium options.
Key Takeaways
✅ DeepSeek is a Solid Free Option – A great choice for budget-conscious traders.
⚠️ It’s Not Perfect – Works well for basic strategies but struggles with complex ones.
🚀 The AI Landscape is Rapidly Evolving – DeepSeek is open-source, meaning it has room for future improvements.
Tips for Using DeepSeek AI
💡 Experiment with Prompts – The better your input, the better the AI’s output.
🔄 Try Multiple Times – AI models rely on probabilities; repeated attempts can yield better results.
🤝 Join a Community – Engage with trading communities on Telegram and Discord to refine your AI-generated strategies.
Conclusion
DeepSeek AI is a promising tool for traders looking to leverage AI without incurring costs. While it may not yet match the performance of paid models like 01, it’s a strong contender in the free AI space. As the technology continues to evolve, DeepSeek has the potential to become an even more powerful tool for trading strategy creation.
📢 Want to learn more? Watch the full video tutorial and access the prompts and code used in these tests. Don't forget to subscribe for more insights into algorithmic trading and AI-powered strategies!
⚠️ Disclaimer: This article is for educational purposes only and does not constitute financial advice. Trading is risky, and you can lose all of your capital. Always do your own research before making any trading decisions.