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

#5599
Justin
Justin
Participant

Hello, yes–there have been consolidations in the past, so it should have good perspective on them.

The behavior we tend to see is when price moves toward the top of a triangle (*resistance* line), it opens a trade. Right or wrong, it is likely “looking” for a breakout–which doesn’t always materialize.

We’ve seen that behavior consistently across each of the crypto.

But as I’m writing this, you can see our models have closed all signals prior to prices just now dropping below the support line resulting in a huge drop and now BTC is below $10K.

So even though there were losses, we are also getting some clear protective notices here (especially considering the rapidly dropping Market Index).

The opposite approach would be buying at the *support* lines of the descending triangle type formation. But this can be extremely dangerous. While you might get a positive bounce, there’s a real chance it will break through down extremely rapidly. I suspect that is why our models avoid it and prefer to instead is target breakouts on the high/resistance side.

Does that make sense?

And @martyf, in regard to the training data, we are building our own proprietary data set. Because of this, we can’t go grab years of back data. But our models do get to consider fully rich data going back to January of 2017.

It looks at the big picture but weighs recent developments a bit heavier.