Well – what a month to kick off our AI Bot experiment. Our Bots trading performance in month 1 is +25.15%, exceptional even by the standards of cryptocurrency where volatility is a matter of course.
The downside, from a research perspective; the Bot hasn’t had much of a challenging market to deal in. The saying that “there are a lot of geniuses in a bull market” has never been truer than in the cryptocurrency market. The challenge will be to see how the bots perform in the next setback (which will inevitably follow at some point).
Some early signs that give us encouragement are the tentative way the bot traded the markets – exiting a couple of losing positions quickly before re-entering when the position stabilised. While those trades could be looked at as “bad” decisions; the bot re-entered at a higher price. From a trading perspective it is often correct to exit a losing position until the situation becomes clearer.
The other standout decision was Ripple. The bot successfully avoided holding a position while Ripple underperformed the general rally in cryptocurrencies then, just before a significant rally, entered into a long position. Almost perfect timing – again, time will tell if this was a fluke or the model identified something in the market behaviour that gave it optimal timing for this trade.
So final positions at the end of the month:
|Currency||Starting Balance||USD||Crypto||Rate||USD Equiv||TOTAL||Gain/loss|
— Wintermute —