AI can help with crypto trading, but most avoidable losses come from process failures. Below is a satirical walkthrough of what not to do—then a serious reminder to trade with discipline.
I want to show you how people claim to trade crypto with AI—and the reckless version that sometimes still pays until it does not. If you are a careful trader, the middle section will make you wince on purpose.
So, what do we need for this experiment?
- Access to a crypto exchange to trade futures
- A working artificial intelligence like CRYPTICORN or someone with access to it
- Someone or something that sends you crypto currency price predictions
- Money you can lose
- Being a little bit nuts will also help
Most readers already have exchange access; Binance Futures and Bybit derivatives are common venues (always verify KYC and product rules for your jurisdiction). Before the fun part, a sentence on what Crypticorn does.
What is artificial intelligence crypto trading?
At Crypticorn we are developing a real artificial intelligence that predicts 15min candles for various cryptocurrencies. But instead of hiding those predictions somewhere, everyone will be able to get the unfiltered output of the AI, at least very soon. For now, only a few people have early access to this monster. This is the reason you need someone with access to this tool. So, right now we have numbers 2 and 3. Let’s move on!
How to trade with cryptocurrencies with AI
Before we make use of number 5 – being a little bit nuts, we want to take a small look into how you should trade with our AI. Before opening a position, you should do at least the following steps:
- You feeling alright? Are you calm? No FOMO, not greedy? Greed, FOMO, and impatience are the main reasons for taking losses.
- Check if the prediction is reasonable. Do what you would normally do: trend analysis, check chart patterns, draw support and resistance lines, etc.
- Risk management! Understand the basics of risk management. As a rule of thumb: Do not use more than 5% of your total funds per trade.
- And as we are trading with AI, check if the prediction is up to date.
This is how a rational person would trade and will succeed in trading cryptocurrencies. But as we are in crypto, we can put everything aside and make use of numbers 4 and 5. So, let’s move on. This is how you should not trade crypto – despite the chance you may win.
How (NOT) to trade with artificial intelligence
If you are a reasonable trader, treat the next sections as a cautionary tale. If you are feeling invincible, read on for how (not) to trade cryptocurrencies.
1. Get a crypto price prediction (from a friend with access).
Here a chat screenshot shows a prediction we could trade. The usual "not financial advice" disclaimer appears—which reckless readers ignore. If the trade sours, blaming the messenger is easier than fixing sizing.
2. Go to your Exchange and open the futures trade section.
We don’t do any further checks, we go straight to our trusted exchange, open the futures page. We want to make huge profits and instant Lambo, so, we want to short the first small dip and type in the numbers with maximum leverage of course. We don’t do proper risk management, as this is obviously for noobs. We hit open short and after two seconds of guess work, we type in some random take profits and stop loss. We are done and can forget about the trade.
3. Make decent profits from our no-brainer trade.
We put in no efforts at all. We did the exact opposite of what a reasonable trader would do… and hence we see the results of our doings… A super clean and easy peasy winning highly profitable trade. We are proud of ourselves as we made big profits in a few hours. Every reasonable trader would stop here, but we aren’t this type of trader. So, what do we do?
4. Open the next trade on the same old prediction?
Correct! Trading again. We could take our time and go back to step 1 – but instead we just take the prediction we already have and trade again.
The short trade was won, we are now at the bottom of the price prediction and the first small dump was perfectly predicted by the AI. So, we do the same as we did before. We switch our brain back into go nuts mode, go to our exchange’s futures trading page, and just open a long position on the same coin. No risk management or whatsoever because we know this is for noobs. We are no noobs, as we already made a successful trade. Hit maximum leverage and hit open long. We set take profit and stop loss again and instantly forget about our doings – again.
And well, we made profits again. Two no-brainer trades resulted in a total of 50% profits. We are proud of ourselves and ready to do it again.
Conclusion
If the irony landed, good: the wins screenshotted here were real once, but variance would have caught up eventually. When you trade with Crypticorn’s AI—or any model—learn risk basics, respect leverage, and do not copy the reckless steps above.
Want more signal on how we think about models, risk, and execution? Follow Crypticorn and share the piece with anyone who needs the reminder.
— Crypticorn team
