Turn Any YouTube Trading Video Into a Backtestable System (With 2 AI Prompts)
The systematic approach to extract trading logic from YT videos in seconds...
YouTube is flooded with trading ideas.
But like any flood…
99% of what’s floating isn’t gold…
It’s garbage.
Yet sometimes, buried inside these rambling videos, there are surprisingly solid ideas.
The problem? Time.
If you're like me (kids, family and a life to live :)), you don’t have hours to watch 40-minute videos hoping to catch the 3 minutes where the speaker finally drops actual trading logic.
Most videos go like this:
"I made 1,130% last month using this setup..."
[20 minutes of lifestyle montage]
"...you just wait for the signal and enter. Simple."
No parameters. No definitions. No risk management.
Despite the great hooks like this…
or this
or this
It’s trading content for views not for traders.
But let’s be clear:
Not everything is useless.
Some creators do share real frameworks and solid ideas.
Not to copy and paste and think you have a ready-to-trade strategy…
But to mine for components you can adapt, combine, and build into your own research.
The Real Problem: Information Density
In most videos, you’re dealing with:
45 minutes of stories
Vague "rules of thumb"
Random market philosophy
About 2 minutes of actual rules
You end up:
Pausing, rewinding, rewatching
Taking messy notes that won't make sense tomorrow
Still not having a fully testable strategy
This doesn’t scale.
You can’t build a serious research process like this.
If you want to build a serious idea bank, you need to process dozens of strategies — fast.
At 2 hours per video?
You’re spending your whole life watching gurus talk.
Now imagine:
• Processing ANY YouTube trading video in seconds
• Getting fully structured, backtest-ready trading rules
• Immediately knowing if the video contains a real strategy or pure clickbait
That's exactly what I built.
And today, I’ll show you exactly how it works.
The 2-Prompt Extraction Engine
The system works in two surgical stages:
Prompt 1: Extract Trading Logic
You feed the YouTube transcript into Prompt 1.
The AI then:
Filters out stories, fluff, and filler
Ignores motivational speeches
Extracts only actionable trading logic
Breaks out entry, exit, stop loss, risk rules, and market context
The Extraction Process:
You start with this…
"Intro
0:00 hey traders in this video you'll learn
0:02 the simplest day trading strategy for
0:04 beginners you literally don't need any
0:06 experience to be profitable and it's the
0:09 strategy I wish I would have known when
0:10 I first started out because it uses
0:13 Concepts that professional Traders use
0:15 but simplified so much that anyone can
}0:17 do it and just because the strategy is
0:19 simple doesn't mean it's not profitable
0:21 as I've also did a back test of it and
0:23 it came out with a staggering 65% win
0:26 rate which is pretty good for just a
0:28 simple strategy so let's get started the The Strategy
0:31 strategy is so simple we only look at…”
And on and on for 20 minutes.
And end up with this…
You now have fully testable rules without burning dozens of hours on YouTube.
But then you probably want to test it, right?
So next, you take that extraction and feed it into Prompt 2.
The AI converts it into clean, platform-independent pseudocode:
No programming language required
Fully structured IF/THEN logic
Platform-agnostic (Python, PineScript, EasyLanguage, etc.)
So here’s it comes the second prompt…
Prompt 2: Convert to Pseudocode
With the extracted logic, you run Prompt 2.
It structures the rules into implementation-ready pseudocode:
This is now ready to be coded in EasyLanguage, PineScript, Python, or handed to any developer.
Why Two Prompts Work (And Why One Doesn’t)
Most people try:
"Hey ChatGPT, extract the strategy from this transcript and give me code."
That fails because you’re asking AI to do two very different jobs at once:
Linguistic extraction
Logical structuring
When you separate the two tasks,
each prompt can specialize → and produce MUCH better output.
I tested both approaches on 50+ real videos.
The two-stage approach consistently produces cleaner, more accurate results than trying to do everything in one shot.
The Hidden Problems You Need to Know
Even with good prompts, here’s where most people fail (and where I failed early on):
1. Corrupted Transcripts
YouTube auto-transcripts destroy trading terminology:
"RSI" → "our aside"
"Bollinger Bands" → "bowling your bands"
"MACD" → "mack dee"
"Fibonacci" → "fiber notchy"
"Stop loss" → "stop lost"
The AI will extract complete nonsense unless you handle this.
My Solution:
I added trading terminology correction directly into Prompt 1.
The AI learns how to interpret noisy transcripts logically.
If it finds unclear chart references, it flags timestamps for screenshots.
2. AI Hallucinations
AI loves to invent non-existent rules:
Hyper-precise numbers: "RSI exactly 23.7"
Multi-step processes pulled from thin air
Risk rules that were never discussed
Extra indicators magically appearing
My Solution:
Built strict anti-hallucination protocols directly into the prompt:
"Extract ONLY what is explicitly stated.
If information is missing, write: ‘REQUIRES_SPECIFICATION’."
3. Incomplete Strategies
Roughly 70% of YouTube "strategies" aren’t actually strategies.
They’re entertainment disguised as education.
Red flags:
No entry definitions
No exit rules
No risk parameters
“Works in all markets & timeframes” nonsense
My solution:
The prompt immediately shows you whether there's even a strategy worth testing or if you should skip the video entirely.
It's saved me countless hours on videos that sound promising but contain zero actionable content.
The Compound Effect
This isn’t just about saving time.
It compounds your edge:
You learn faster
You test 5x more ideas per week
You refine your system-building skills
You build your personal research database
And in systematic trading, volume matters.
The more ideas you process →
The more valid setups you discover →
The faster you build true edge.
The Prompts That Run My Extraction Engine
You've now seen the full system at work.
But building these prompts took months of iteration:
50+ real YouTube videos processed
Dozens of failed tests
Multiple rounds of refining edge cases
These aren’t "off-the-shelf" prompts.
They’re designed specifically for YouTube transcript messiness.
I’m sharing both full prompts below:
• The Trading Logic Extraction Prompt
• The Pseudocode Conversion Prompt
Enjoy…