I’ve been trading Bitcoin using a price prediction algorithm. Here are my results.

Is Machine Learning the next big thing in crypto markets?

Two weeks go, I built a crypto trading algorithm that makes predictions on the price of Bitcoin based on machine learning, and trades based on its predictions. Test data is finally in so let’s jump into it.

The strategy

First off, allow me to briefly explain what the strategy is and how the Bitcoin trading algorithm actually works, and where the machine learning bit comes into play. 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.