Bitcoin proponent Tiago Vasconcelos created a trading bot with artificial intelligence that helped him accumulate more BTC with a simple buy-and-hold strategy.
It was an AI learning experiment…The code got a daily price movement from 2014 to 2021,” said Vasconcelos, who founded Aceita Bitcoin, a Portuguese organization that promotes the adoption and sharing of bitcoin.
The programmer “taught the bot or explained to it the rules, the candles, the principles when you can either buy or sell or do nothing. The bot receives one point for each profitable trade and loses it as a “penalty” for unprofitable trades.
The goal is for the bot to score the highest possible point, and the exercise is to make thousands/millions of attempts with this data set, paving the way to buy and sell.
The convenience of AI is that the bot begins to observe “patterns” and make “moves” to maximize the balance of the trading account.
Eventually, the bot comes to the conclusion that it is best to buy as soon as possible and never sell!
Now it’s not just popular bloggers and bank analysts who are leaning toward the Hodl strategy, but robots as well.
Hodl is a popular meme in the bitcoin space that originated from a Bitcointalk forum post in 2013 with a typo in the word “hold.” The reason its author GameKyuubi decided to hodl is because he accounts himself as a loser trader:
I’m a bad trader and I KNOW I’m a bad trader.
Turns out, already at that point he was as smart as an artificial intelligence based bot.