DeepSeek or ChatGPT? A Guide to Choosing the Right AI Trading Partner

With the now widespread use of generative AI models like ChatGPT and Chinese newcomer DeepSeek, retail trading has been changed forever. Developments in machine learning capabilities are coming hard and fast  and as a result the average trader is playing catch up, wondering which AI tools are best and how best to use them to maximize their trading profits. 

In this article, we’ll examine how generative AI’s like ChatGPT and DeepSeek can be used by traders to optimize  their trading and examine the pros and cons of each model. We’ll also look at their limitations and see if there is a better and simpler way to automate the trading process. 

How ChatGPT and DeepSeek Can Be Used By Traders

Let’s dig into the practicalities and see some of the many ways these generative AI models can be utilized as part of a trader’s workflow:

1.  Strategy and Bot Creation: Traders can harness generative AI models to improve their risk management models and develop trading strategies, using Pine Script and MQL5 to create bots.

2. Portfolio Optimization: AI models can simulate various risk scenarios, automate position sizing and stop loss orders using  Python, and optimize portfolio allocations. 

3. Debugging and Backtesting:  Generative AI models can be used to create and debug trading scripts for backtesting strategies, as well as backtest  results and propose improvements 

4. Trading Signal Creation: AI can be used to generate trade signals by analyzing financial reports, social media and news sentiment. They can also be used to extract data from financial news APIs. 

5. Trade Execution Optimization:  AIs can place trades using  API integration optimizing execution by creating scripts to build smart order routing algorithms, tracking order book depth and spreading big orders across multiple platforms to reduce slippage.

ChatGPT and DeepSeek Pros and Cons

Now we’ve looked at the potential uses for generative AI models in trading, let’s compare ChatGPT and DeepSeek and examine the strengths and weaknesses of each. 

Pros for Using ChatGPT in Trading:

• Market Contextualization – ChatGPT is great at understanding market context, providing insights into market patterns, trends, risk mitigation strategies and trading psychology
• In-depth Fundamental Analysis – It can break down the latest market news, and assess the impact of  economic indicators,  financial reports, and earnings releases
• Trading Tool Integrations –  ChatGPT supports trading tool and API customizations and plugins enabling integrations with various market data providers
• Financial Content Generation– The AI model generates accessible,  educational content and financial reporting  for traders designed to assist in their decision making

Cons for Using ChatGPT in Trading:

• No Live Price Feeds – Traders cannot gain insights based on real-time price feeds except in instances where the model has been integrated with external sources
• Lack of Data Specificity – ChatGPT cannot match the precision of the insights achieved by dedicated quant platforms
• Does Not Execute Trades – without extra API support ChatGPT will not place trades or integrate with trading terminals
• Limited Technical Analysis – ChatGPT does not have the capacity to  process real-time price charts and provide the level of analysis that dedicated trading software can

Pros for Using DeepSeek in Trading:

• Complex Mathematical Calculations – DeepSeek shines at advanced computations making it an excellent tool for technical analysis
• Advanced Coding Capabilities – The model is great for traders who wish to program custom trading bots to automate their trading strategies
• Efficient Data Processing – Capable of parsing huge  datasets, DeepSeek is useful for analyzing trends and market sentiment
• Support for Multiple Languages – Traders can use the AI  to analyze news analysis and financial reports in a wide range of  languages

Cons for Using DeepSeek in Trading:

• Not Specifically Trading Focused – DeepSeek cannot provide the specialized financial market insights that a trading platform can deliver
• Lacks Strategic Context – It is not built to drill down and provide advanced insights into trading strategies
• Not Focused on Live Trading  Data – DeepSeek was not designed to provide real-time market tracking and analysis
• Few Integrations – This AI model has less trading platform integrations than others which are more focused on the financial markets

The Challenges of Using Generative AI Models
While generative AI models like ChatGPT and DeepSeek have automated many complex and time-consuming processes for traders, there are still a number of limitations to using these artificial intelligence tools that need to be considered. 

1. No live data or trade execution – No built-in access to real time market data feeds and no trade execution capabilities so they are  reliant on external APIs
   
2. No true predictive capabilities  – While ChatGPT and DeepSeek are great at analyzing historical data to identify price trends and present information in a very authoritative and confident tone, they cannot anticipate future price movements with any real degree of certainty
   
3. Can’t hold up in real-world market conditions – The AI models are vulnerable to bias and can overfit- working well on historical charts when backtested but not surviving the reality of a volatile live trading scenario
   
4. No market  intuition or experience – Unable to truly understand catalysts for human behavior these AIs lack a certain economic contextual awareness and so they can misinterpret the impact of a news event or the lifespan of a trend
   
5. A risk to data security – DeepSeek and ChatGPT are processing huge datasets every millisecond, with the potential for serious data privacy and security vulnerabilities. In addition, DeepSeek in particular has been called out  for its excessive collection of personal data.
   
6. Danger of flawed code – AI-generated trading code can be useful but is not tested in a real-world trading environment and the flaws might not become evident until they start executing live trades
    
7. A lack of regulatory compliance – ChatGPT and DeepSeek may generate strategies that breach local market regulations exposing traders to legal risk. Examples of violations could include restrictions on HFT, market manipulation and front running.

AlgosOne  –  A Better AI Trading Experience

While ChatGPT is great for strategy development and understanding market context, and DeepSeek helps with complex mathematical computations and code generation, those who don’t have programming or trading knowledge are left out in the cold. 

Here at  Algosone.ai though, no coding or trading is necessary. You also don’t need to know how to create a prompt that gets you the data you need.You simply sign up, deposit funds and our AI-based trading platform, processes and analyzes a mountain of market data from multiple sources, builds a diverse portfolio, strategizes, manages risk and executes trades. 

AlgosOne combines proprietary deep learning algorithms with natural language processing (NLP) models similar to those used by DeepSeek and ChatGPT to achieve a trade success rate of over 80%, which it has maintained for the last two years in a row. The bot learns from every trade it executes, getting more accurate as it gains experience. In fact, when thousands of contracts reached maturity at the end of 2024, they all hit and in many instances exceeded their annual profit projections, earning account holders between 50-250% profit.  

Licensed and regulated, we’ve created a secure trading environment with a reserve fund that provides full user capital coverage. There is also 24/7  human oversight by risk management teams who track the markets and bot activity to compensate for the lack of lived experience of the markets that no machine can ever simulate. You are also not losing money to 3rd party trading platforms with AlgosOne, as there are no registration, subscription, deposit, inactivity, transaction fees or spreads. There is only a commission fee, which is just  charged on winning trades.

Another perk of using AlgosOne to trade for you,  instead of using a generative AI model to assist with your trading, is that next quarter we’ll be introducing our native token AIAO.  The token sale is designed to generate capital gains, as AlgosOne has guaranteed a minimum price increase of 50% at the start of each presale stage and has committed to buying $100M worth of tokens in the public sale. Token holders will also earn regular dividends based on company revenues which are shooting up year-on-year, and will enjoy voting rights as well as trading benefits.

The Bottom Line: DeepSeek, vs ChatGPT vs AlgosOne

When comparing all your options, DeepSeek is  ideal for experienced market participants who need coding, data processing, and quantitative analysis done by an AI. Meanwhile, ChatGPT is your best bet if you want educational material, market insights, and AI-assisted strategy development. However, AlgosOne is best for traders without the time to trade, and neither  the coding knowledge or the trading  experience to program their own strategies who want to benefit from an industry-high trade win rate. 

Want to learn more about AI trading and the financial markets, including developments in the crypto space? Check out the AlgosOne blog here.