Bitcoin Forum

Has anyone tried algo trading cryptos? If yes, what do you think compared to normal stocks? Did you use algos based on the popular ones or some exotic algos? Basically, anything you have to say about algorithmic trading, feel free to say.

For a while I ran a website that used artificial neural networks to make predictions about bitcoin price. When I back-tested it historically it performed pretty well. I did not try trading based on it, but other people did. Based on the feedback I got, it would seem like most people profited but some people did not. I think using algorithms or ai for trading can work, but I would bet that 99.99% of what you find out there will not consistently outperform the crypto market.

Wait, so your neural network algorithm worked for trading predictions? AFAIK, traders were having serious problems trading with ML or maybe just deep learning. Nice to know it works.

There are more furious people than the AI. It will never catch the fish unless and until people stops manually modifying the market values. Now a days pump groups are very active and they keep pumping the coins whenever they want. In such cases AI is literally getting pulled by these acts and can't predict the right market.

More interesting now is the use of arbitrage trading strategies. Because of the decentralization, the courses of altcoins on different exchanges have very different. And you can trade only bitcoin with a good profit if you trade between exchanges.

Arbitrage trading could be very profitable but it's very risky at the same time and you can ebd up with losses. It's not so easy to monitor all exchangers and be fast enough to trade with success. It takes a lot of experience and time invested so I wouldn't suggest it for beginers.