Hodl, don’t trade, AI Bitcoin trading bot says

“Hodling” is really the way when it comes to collecting Bitcoin (BTC). At least that is the conclusion of an artificial intelligence (AI) trading bot coded by a Portuguese software developer.

Bitcoiner Tiago Vasconcelos is the man behind the trading experiment. Vasconcelos built an AI trading bot that would help him collect more Bitcoin and test his coding skills. Almost unthinkable, instead of trading, the bot quickly concluded that the best way to trade Bitcoin is to buy and hold it.

Vasconcelos is the main founder of Aceita Bitcoin, a Portuguese organization that promotes the adoption, education and sharing of information about Bitcoin. An avid Bitcoiner, he is also involved in Bitcoin-related side projects.

He told Coin-Crypto, “It was an AI experiment for enhancing learning, where I went and got a truckload of historical data from BTC/USDT.” The code comes from and deleted the daily price action from 2014 to 2021.

Vasconcelos “then trained it, or told him” [the bot] the rules, here are the candles, you can buy, sell or do nothing.”

For each profitable trade, the bot would be rewarded with one point. The bot loses one point as a “penalty” for lost trades. Finally, the bot is awarded a reward for the total amount of Bitcoin that the bot ends up with:

“The goal is for the bot to get the highest possible score and the exercise is for it to make thousands/millions of tries on that set of data, creating a ‘mental’ path of when it’s best to buy, best to buy.” sell, etc.”

Screenshots of the “Finding Less Trades Works Best!”

The beauty of AI is that the bot starts to observe “patterns” and what Vasconcelos describes as “moves” the bot makes to maximize its trading score.

“In the end, the bot concludes that the best move is to buy as soon as possible and never sell!”

There you have it, now it’s not just popular talking heads and even banks in the Bitcoin space crying “Hodl”. Even the robots are hodlers.

Related: Bitcoin Idle Supply Nears Record as Over 60% of BTC Goes Unused for at Least 1 Year

Hodl is a popular meme in the Bitcoin space, taken from a Bitcointalk forum after in 2013 by a drunk contributor who misspelled hold. The reason the original commenter, GameKyuubi, decided to quit is “because I’m a bad trader and I KNOW I’M A BAD TRADER.”

Turns out he may have been as smart as artificial intelligence all along.

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