There are a lot of trading bots in the market. Lydian-Bot is one of them. It's quite new. In general trading bots use 2 different structures:
1- Some bots provide an interface to users to make their own strategies based on classical technical indicators. For these types of bots, the user have knowledge about trading indicators so that they can create their own strategies and let them the bot run it.
2- Some other bots provides a "secret algorithm" to users so they don't need anything to know about trading indicators. This type of bots have advantages and disadvantages. Biggest advantage of this type of bots that they are so simple to use but disadvantages of them are you don't have any control and you don't know what could they do. So they are some kind of gambling. If they provides a backtest and paper trade for free, you can forecast about future performans.
First type of bots are quite clear. Let's talk about second type of bots. Some of them claim to use Artificial Intelligence or a new indicator that no one knows.
Lydian Bot promises to have both two types of these structures. Again, first type is clear. For the second type, Lydian-Bot will have two different "secret" algorithms:
- Based on NLMS which is an adaptive filter algorithm. Lydian Bot predicts the direction of price baed on this algortihm and enters a position. Its exit strategy is based on target price. User can select the risk. Risk contains three parameters:
-- Target profit: If the target profit is low then the risk is low.
-- Buy threshold: This parameter indicates that how strong the buy signal created by NLMS is.
-- Grid levels: If the bot enters a position and price continues to decrease, even there is a new enter signal, bot ignores it until the price reaches grid levels profit.
- AI based algorithm
Lydian-Bot provides an AI bot using Neural Networks by training with Genetics Algorithm. Neural Networks are created by inspiring real brain. Genetics algorithms are also created by inspiring natural and/or artificial selection occurs in the biology. Lydian-Bot applies these algorithms to the world of trading. The bot selects the best Neural Network coefficients in a given period of time based on previous data.
User can retrain the bot on a different period.
Lydian-Bot Alpha release is available to download. In Alpha release there is only one aproach which is NLMS based trading. So users can select the risk they want to take.
You can download and run backtests in the period you want to know the performance in different risks. You can also run paper trade for free.
https://lydianbot.com
