Artificial intelligence has made a long way into our lives. While some industries are influenced more than others, trading is among the most malleable ones. Modern AI trading systems can independently collect and process information by imitating analytical thinking. Such potential has yielded significant AI-powered systems growth over the last decades. Consequently, automated trading conquered a large share of the total market volume. This article briefly narrates the ins & outs of artificial intelligence trading before introducing one of Mizar’s finest official traders— AI Alpha.
Artificial Intelligence in trading is a set of tools designed to put your trading experience on autopilot. AI independently collects and processes large volumes of prices, volume, and on-chain data. The information obtained allows machine learning models to make assumptions and increase trading accuracy over time. AI bots are highly malleable and can adapt to market conditions, resulting in a solid performance over the long run.
Artificial Intelligence is becoming a major component in developing trading strategies for markets that are difficult to predict. It does not just trade according to a set algorithm, but constantly collects and processes huge amounts of data, analyzes events and trends, and makes decisions independently.
Deep learning allows AI bots to collect unstructured data from various sources, such as prices, volumes and other on-chain data. Even though the incoming data may not be accurate per se, the large volumes processing helps to spot trends based on past events and market performance.
AI uses historical data to understand how the current market would react to past events. That way it can adjust its trading strategies. Although it’s not immediately profitable, it allows the AI to learn how to be productive in future market conditions.
The principle of software solutions with AI is similar to the approach used by analysts. Once data has been collected, it's time to organize and split it into groups. AI bots use training and test sets to process data.
Training datasets ensure a secure way to tune future performance. If an algorithm hits specific benchmarks, it's then calibrated under real-market conditions. That's where test datasets chip in to perfect AI behavior.
The algorithm aims to predict the price dynamics of the asset traded by a trader. There are many ways to build a predictive algorithm, but most peel the problem to a two-class model based on the signal and predictability factors.
While the signal indicates a rise or fall in price, predictability accounts for the confidence part. Once the output is generated, the trader receives the desired signal.
Many experienced traders and investors believe the future lies in smart trading tools and robo-advisors. Artificial intelligence has already turned the tables, and its influence will only increase over the years.
AI Alpha is one of the best and most profitable official traders at Mizar. The team has an extensive background in engineering, which allows them to develop AI-based trading strategies for the Mizar community members.
The AI Alpha team combines proprietary, technical, and on-chain indicators with AI algorithms to catch high probability winning trades. Let’s break down the logic behind AI Alpha DCA bots, so that you can understand how they work.
DCA bots average your purchase price by placing orders over time. Each bot has several trading parameters that determine its trading style. Base and safety orders shape bots the most. Simply put, it means how many orders a bot places.
Basic order [BO] — A single trade. One entry and exit order.
Safety order(SO#1) — Two trades. Basic order, one more entry and exit
Safety order(SO#2) — Three trades. Basic order, Safety order 1, one more entry and exit.
Traders and algorithms use Safety Orders to get a better entry price in case the price goes against their assumption. More Safety Orders imply less accurate trading assumptions and vice versa.
AI Alpha bots offer adjustable settings, meaning traders can automatically or manually tune safety orders. Safety orders work perfectly for conservative DCA strategies. Check out the detailed AI Alpha take for more information.
Optimus and Turbo are two of the many well-performing strategies AI Alpha offers. Let’s have a closer look to understand them.
Think of a one-click trading experience for conservative traders. AI Alpha Optimus is a Dollar Cost Average (DCA) spot bot that capitalizes on USDT long trades across 2250+ crypto pairs. Back in October 2022 AI Alpha DCA Optimus Spot USDT showed a performance of 47.6%.
AI Alpha DCA Optimus Spot USDT: Performance
Yields | 47.6% |
Best Trade | 3.7% |
Av. PnL per trade | 1.0% |
Exchanges Supported | Binance, KuCoin, Coinbase Pro, OKx, MEXC, Huobi, Bybit, Crypto.com, WOO Network |
During the 30-day period 72% of orders were closed as Base Orders. In other words, the Optimus Bot has shown high prediction accuracy, and orders were closed at various Safety Orders on decreasing.
Safety Order 1 | 17% |
Safety Order 2 | 7% |
Safety Order 3 | 5% |
Safety Order 4 | 0% |
AI Alpha Turbo Bot is a Dollar Cost Average (DCA) bot capitalizing on USDT spot longs across 336+ crypto assets. DCA Turbo Bot is the second most successful product of AI Alpha official trader.
If you’re looking for a slightly more aggressive DCA approach, Turbo bot is your choice. The bot places fewer orders compared to Optimus, resulting in a higher profit per trade rate. The 30D trading performance is 30.4%
AI Alpha: DCA Turbo Bot Performance
Yields | 30.4% |
Best Trade | 5.1% |
Av. PnL per trade | 5% |
Exchanges Supported | Coinbase PRO |
DCA Turbo Bot strategy is designed for traders with a higher risk tolerance, as trading positions are equally spread from BO to SO4. Such a distribution implies more risks, but also more potential profits.
“Mizar is an EXCELLENT platform! It's the smart way to trade crypto! It offers trading 24/7! It's zero upfront fees. I foresee great success for the platform in the next months." — Team AI Alpha.
If you’re keen to learn more about AI Alpha, you can check his official Twitter, Medium, Telegram, and YouTube channels.
While no one knows what the future holds, artificial intelligence already shapes many industries. Trading is one of the exemplary case studies, as it has lots of data to analyze and shape AI tools. Mizar x AI Alpha collaboration is a brilliant opportunity to join the trend and benefit from cutting-edge technologies in a simple way and bring crypto copy trading strategies to the traders of all levels.
We provide detailed instructions on working with the bot functionality, so that anyone can seamlessly facilitate its trading experience. No paid subscription. No upfront fees. Start trading with Mizar x AI Alpha Bots.
Mizar DCA bots are the easiest way to make profits using AI. You can launch your first DCA bot within a few minutes from the Mizar marketplace.
You can access AI-powered bots on the Mizar marketplace. Once you set up your first AI bot, you’ll get all the benefits of artificial intelligence trading.
Artificial intelligence bots automate your trading experience while keeping it efficient. They use machine & deep learning to aggregate and process relevant market data. The data is then used to make efficient trading predictions and decisions on your behalf.
Artificial intelligence crypto trading in real time requires no specific background. You can use the Mizar trading platform to get started and benefit from efficient AI crypto trading.