Home Community Trade Signal Discussion ML bot is not handling this chop well Reply To: ML bot is not handling this chop well

#5584
JustinJustin
Moderator

Great question and we are definitely in a highly uncertain period. A few things have me being very cautious:

1. The Market Index is dropping pretty quickly and is approaching bear territory.

2. The signals are very conflicted. Many times, you’ll see the “short” signal closed and all of the “long” signals open around the same time. But right now, we’re seeing them all over the place.

3. There are a lot of very large moves happening. This has occurred in the past and makes things very unpredicatble. Here is a read on this: https://finance.yahoo.com/news/massive-bitcoin-transactions-few-explanations-144159601.html

How we’ve seen the ML respond in the past is it is opening positions at pivotal points. It’s possible we’ll see a breakout up, but these continue to be failed launches.

As it says in the article: The market is ready to go way up. Or way down. 🙂

One answer to this is we are continuing to feed data to the ML and let it absorb, understand, and find patterns in the current situation. We are all in on this. It certainly feels as though this could be handled better.

The second piece of this is trading is a numbers game. Even though we have a string of losses here, that is historically how it can go. We updated the Trade History page today. You’ll see that we’ve gone through phases of losing trades (which are kept in check) but then get followed by winners. This works out in the long run, but ideally, we want this to get to a point where we don’t get these losses.

In terms of recommendations, I think it’s smart to be in the “no trade zone” or reduce the amount you are trading.

A couple of weeks back we made a similar recommendation (based on indicators from across our platform) here: https://crypto-ml.com/crypto-market-analysis-bearish/