Initial results trading Bitcoin using a price prediction algorithm

Last week, I built a crypto trading algorithm that aims to predict the price of Bitcoin and place trades based on this prediction and let it run in test mode for a while to see if such an approach is viable and whether it can yield good profits.

The strategy

Before we explore the results, let’s briefly go through how strategy works in a nutshell. For an in-depth explanation of the strategy and the code/ approach of the algorithm, I recommend reading my initial article on this topic here.

The logic is quite simple:

• The algorithm gets the Open value of the current 1h candle for BTCUSD.
• It then tries to predict the High value for this 1h candle.
• A Trade is placed and the algorithm listens to changes in price over the next hour.
• If the Current price reached the predicted price within the 1 hour timeframe, the trade is instantly closed an we take profit. However, if the predicted price is not reached within 1 hour, we close the trade as our set-up lost efficiency.

The Results

Due to the fact that I’ve been tweaking the algorithm over the past week, the results over the whole week have been varying in accuracy, in order…