Kyuho's personal homepage

Cryptocurrency Trading Bot

05/2021 ~ 08/2021

Even though I got a 3.7% profit margin with the A.I. trading bot, there were several problems.
First, the A.I. model was easily overfit with training data.
Second, the profit margin was way below the expectation.

To upgrade my trading bot, I met the CEO of QRAFT, an A.I. ETF company, to get some advice.
He said that the stock market might not be a good market for a simple trading bot since many variances cannot be analyzed by A.I., such as news and financial statements.
So, He recommended the cryptocurrency market where only technical indicators are important.
This is the reason why I decided to develop a cryptocurrency trading bot. 

Plus, I made a customized algorithm rather than using A.I. There are two reasons for this. 

  1. Patterns exist sparsely in the cryptocurrency market. A.I. cannot recognize the sparse pattern, but a human can.  
  2. I don't have any insight into cryptocurrency. Insight into the market is necessary for high performance AI. However, I don't have any. Therefore, I need to get some insight by designing an algorithm-based trading bot. 

My trading strategy is simple. First, I buy a cryptocurrency when the price touches the line which connects a bundle of local minimum prices or local maximum prices. Then, I sell it when the price rises or falls x%. The way of drawing line, x, and other specific conditions are determined by statistical analysis.

As a result, I got about a 25% profit margin with this program for a month. 

From this project, I could get some insight into the cryptocurrency market and understood what patterns are present in the market. So the next project will be an A.I. cryptocurrency market trading bot.