How to Beat the Crypto Market with Artificial Intelligence

Bitcoin predictions from neuromorphic temporal networks

Mark Cleverley

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My name is 01001000 01000001 01001100, AI of AIs;
Look upon my Works, ye Traders, and despair!

A while ago I covered Intelletic’s AI-generated “Price Prediction Alerts”, and unpacked what makes their cortical algorithms so interesting.
They’ve designed a mixed-biological hierarchical model that generates “warnings” of Bitcoin price spikes in either direction. These predictions can then be used to make more informed trading decisions.

I also spoke about harnessing pigs to sniff out truffles, which is more relevant than you’d think.

However, I wrote “how and why the tech works”, not “does it actually work?”. When money’s on the line, this is rather important.

So I wrote a bot that trades virtual Bitcoin portfolios based on PPAs, and gave it the last 4 years of data to see if it works.

It works. Terrifyingly so.

Auto-trading Algorithms

The PPA-generating AI itself is like a pig sniffing for truffles.
But the pig is robotic, so it’s always sniffing and notifies you immediately if it picks something up. Also, if you don’t dig up the truffle within an hour, the pig eats it.

This something of a hassle to deal with manually. Rather than make my own decisions based on Intelletic’s price alerts, I decided to write a bot that just bets 10% of the portfolio when a PPA tells it to buy or sell Bitcoin.

Specifically, it trades with auto-stops based on each PPA’s 75% confidence threshold.
A 5_minute_long PPA with 75%_confidence = 50 means:
During 75% of previous 30_minute_longs, the price of BTC rose by at least $50 at some point during the 75 minutes (time and direction determined by type of PPA).

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Mark Cleverley

data scientist, machine learning engineer. passionate about ecology, biotech and AI. https://www.linkedin.com/in/mark-s-cleverley/