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Backtesting a Protitable AI Crypto Trading Bot for Bitcoin

An AI crypto trading bot for bitcoin based on crypto price predictions made with machine learning. Amazing backtesting results yield 68% profit in 104 days during bear market!

Amazing backtesting results of Crypticorn's AI crypto trading bot:  68% in 104 days
Amazing backtesting results of Crypticorn’s AI crypto trading bot: 68% in 104 days

Introducing our cutting-edge cryptocurrency AI trading bot for pair trading! Our trading bot, designed to improve your trading experience, employs artificial intelligence to identify profitable opportunities in the cryptocurrency market by predicting prices. It employs sophisticated machine learning and deep learning algorithms to search for instances of price convergence and divergence across a wide range of cryptocurrency pairs like BTC, ETH and others.

What exactly is an AI Crypto Trading Bot?

Crypticorn AI cryptocurrency trading bot scans and analyses massive amounts of historical and real-time market data in order to identify correlations, patterns, sentiment and trends for a specific crypto asset. The bot effectively identifies pairs or clusters of assets that are expected to exhibit similar price movements in the future to exploit statistical arbitrage opportunities by utilising statistical methodologies such as

  • cointegration: technique used to find a possible correlation between time series processes in the long term,
  • regression: statistical technique that relates a dependent variable to one or more independent (explanatory) variables),
  • machine learning algorithms: gradient boosting regressor, decission trees, light gradient boosting, support vector machines and others
  • and stationarity.

These statistical techniques allow the bot to discover hidden market relationships, correlations and dependencies, providing traders with valuable insights for strategic decision-making. Crypticorn AI bots give traders and investors a competitive advantage by leveraging the power of data analysis, allowing them to stay ahead of market trends and potential opportunities.

How Does This AI Crypto Bot work?

The AI trading bot bases its buy signal decisions on Crypticorn’s AI price predictions. An example of an AI price prediction for Bitcoin is provided below. The price chart is represented by red and green candlesticks, and the price prediction of BTC with confidence intervals is displayed on the right side.

AI crypto price prediction used by Crypticorn's AI crypto trading bots
AI crypto price prediction used by Crypticorn’s AI crypto trading bots

Based on these predictions the AI trading bot decides to short or long BTC. The algorithm used for these backtests are really easy: if there is a peak in one direction that is greater than 1.0% while the peak in the other direction is less than 0.4% we trade in the direction of the bigger peak. Let me explain this to you in an example:

  • Upwards peak: 1.5% and downwards peak 0.2% -> we go Long
  • Upwards peak: 0.3% and downwards peak 1.1% -> we go short
  • Upwards peak: 1.1% and downwards peak 1.2% -> No trading

Once we entered our trade we set a take profit of 1.0% and a stop loss of -0.5%. The algorithm followed a very simple strategy. There are no adjustments made after we opened the trade; in fact it’s a fire and forget strategy that made amazing results!

As you can see, Bitcoin made about 15% during the 104 days of testing , while our AI trading bot made 4x more. The bot’s algorithm achieved amazing results, earning 68.54% profit.

We used a fee of 0.05% to open a trade and 0.05% to close a trade but did not take into account funding rates, for example. This trading strategy’s leverage was one, implying that no leverage was used.

Conclusion for AI Crypto Trading Bots

Finally, Crypticorn’s AI crypto trading bot is a significant advancement in the world of cryptocurrency trading. The astounding backtesting results, which show a 68% profit in only 104 days, even during a bear market, demonstrate the efficacy of this cutting-edge technology. This trading bot identifies correlations, patterns, and trends in the cryptocurrency market using artificial intelligence and sophisticated machine learning and statistical techniques, providing traders with valuable insights for strategic decision-making.

The bot’s algorithm is user-friendly and efficient, relying on clear buy signal decisions based on AI price predictions and employing a straightforward trading strategy with predetermined take profit and stop loss levels. During the testing period, the AI trading bot significantly outperformed the market, achieving a remarkable 68.54% profit.

It’s worth noting that these results were obtained with a conservative approach, with minimal fees (like on Binance) and no leverage, which adds to the bot’s performance. As the cryptocurrency market evolves, tools such as Crypticorn’s AI trading bot provide traders and investors with a competitive advantage, enhancing their ability to navigate this volatile landscape with confidence. Cryptocurrency enthusiasts and traders can anticipate a bright future in which AI-powered solutions will redefine the possibilities in the crypto trading arena.

AI version used: 1.3 improved (August 2023)

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