Bitcoin

Bitcoin AI Trading Bot Review: Best Buy Early, HODL and Never Sell

“Hodl” is really the way to accumulate bitcoin. At least, that’s the conclusion of an artificial intelligence (AI) trading bot programmed by a Portuguese software developer.

Bitcoiner Tiago Vasconcelos is the man behind this transaction experiment. Vasconcelos built an AI trading bot that could help him collect more bitcoins and test his programming skills. Almost unbelievably, instead of trading, the bot quickly came to the conclusion that the best way to trade Bitcoins is to buy and hold.

Vasconcelos is the main founder of Aceita BTC, an organization in Portugal that promotes BTC adoption, education and information sharing. An avid Bitcoiner, he is also involved in BTC-related side projects. I said:

“It was an AI reinforcement learning experiment. I got quite a bit of historical BTC data there.”

This code provides and presents the daily price movements from 2014 to 2021.

Vasconcelos then “trained it or explained the rules to the bot, it’s a candle, you can buy, sell or do nothing”.

For each profitable trade, the bot is rewarded with one point. In contrast, the bot loses a point as a “penalty” for losing trades. Finally, the reward is given to the bot based on the total number of bitcoins the bot completes:

“The goal is for the bot to get the highest possible score, and the exercise is for the bot to make thousands/millions of tries on that data set, creating a ‘mental’ path for the best time to do it. best for sale etc.”

Screenshot of “Find the few top performing deals!”

The beauty of AI is that the bot starts observing “patterns” and what Vasconcelos describes as “movements” that the bot makes to maximize its trading score.

“In the end, the bot came to the conclusion that the best thing to do is to buy as soon as possible and never sell!”.

They already have Bitcoin, now not only famous KOLs but even banks in the bitcoin space are calling out “Hodl”. Robots are hodlers too.

Hodl is a popular meme in the bitcoin space that has its origins in a post Office on the bitcointalk forums in 2013 by a drunk employee who misspelled it. The reason original commenter GameKyuubi chose Hodl was “because I’m a bad trader and I know it”.

As it turns out, he might be just as smart as artificial intelligence.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.