Do nothing rather than do for nothing! – When it comes to investing in the financial markets, the Panic Sell often leads to missed opportunities. A trading bot that learns to time the market for accumulate of Bitcoins learned alone that the best way to be profitable is simply to “hodl”.
Artificial intelligence advises to wait
Hodling is the best way to accumulate Bitcoin (BTC). At least that is the conclusion drawn by the trading bot coded by a Portuguese software developer. Tiago Vasconcelos is the man behind this trading experience. He has developed a trading robot that helps him accumulate more bitcoins (BTC).
Vasconcelos is the main founder of Aceita Bitcoin, a Portuguese organization promoting Bitcoin adoption, education and information sharing. Passionate about bitcoin, he is also active in side projects related to bitcoins (BTC).
The code was used to search and retrieve daily price action from 2014 to 2021. Almost inconceivably, instead of trading, the bot quickly concluded that the best way to accumulate Bitcoin is to buy it and trade it. keep. The beauty of AI is that the bot begins to observe “patterns”. He also analyzes what Vasconcelos describes as “movements” he makes to maximize its trading score.
Vasconcelos trained the bot. That is to say, he taught him the rules of trading. For each profitable transaction, the bot receives a point in reward. The bot loses a point as a “penalty” for lost trades. Finally, the robot receives a reward for the total amount of Bitcoin it manages to accumulate.
” The goal is for the bot to get the highest possible score. The exercise is that it does thousands/millions of runs on this data set, creating a “mental” path of when best to buy, sell, etc. »
Tiago Vasconcelos, developer of the bot that advises HODL on his bitcoins (BTC)
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HODL Bitcoin, a “technique” that works
Hodl is a popular meme in the Bitcoin space. This same comes from a post on the Bitcointalk forum in 2013. Indeed, an inebriated contributor had misspelled “hold”. The reason original commentator GameKyuubi decided to hodl is “because I’m a bad trader and I KNOW I’M A BAD TRADE. »
So now it’s not just the popular thinkers and the banks of the bitcoin space screaming “Hodl! “. Even robots are hodlers. Therefore, it turns out that this contributor could have been as smart as AI all along.
By using data dating back to 1930Bank of America strategists found that a core hold strategy would have produced total returns of 17,715%. If, on the other hand, investors had tried to time the market, they might have missed the best trading days. Missing just ten of the best S&P 500 trading days each decade would have diluted total returns to just 28%.
For many investors, especially inexperienced, the natural impulse is to sell after a major downturn. But Bank of America has found that the market’s best days often stem from the worst declines. the panic sell to the downside could therefore cause investors to miss the best days.
Some entrepreneurs are trying to apply innovations in artificial intelligence and machine learning Automatique to help traders manage their emotions. Long-term Bitcoin investors often reap the rewards of their HODL strategy. Through this, the 2021 rally has produced thousands of BTC millionaires among hodlers and many companies have entered the race.
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