Yesterday, the Crypto-ML machine-learning model issued “SELL” signals, closing all open positions. Yesterday’s selloff saw double-digit drops that occurred during an incredibly fast 2-hour window.
While these positions were sold for losses, this move can potentially protect against additional downside exposure.
Handling Exceptions and Losses
This shows us that exceptions can and do occur. Trading highly-volatile assets is a risky endeavor.
While the Crypto-ML platform posts incredible results, unique and exceptional market situations will occur that the system simply will not foresee.
It is also worth noting that losing trades are part of the system. Crypto-ML, though, keeps them well controlled. For Bitcoin, losing trades have averaged -3.88%, whereas the winning trades have averaged 40.10%.
Additionally, there have only been four other double-digit Bitcoin losses from the Crypto-ML platform, three of which were in 2014. While this is an unfortunate situation, it does highlight the risk of trading and how quickly an exceptional event can occur.
Trade Close Results
The results of the recent trades are:
- BTC was opened at $7534 on 6/1 and sold for $6738 on 6/10 for a 10.57% loss
- BCH was opened at $1074 on 6/2 and sold for $913 on 6/10 for a 14.99% loss
- LTC was opened at $121 on 6/6 and sold for $105 on 6/10 for a 13.22% loss
The Advantage of Machine Learning
Traditional trading systems will accept losses in favor of larger gains, however, Crypto-ML can do something better. Every new situation is an opportunity to learn and improve. As a result of this loss, it is possible Crypto-ML will be able to better predict and avoid scenarios like this in the future.
We look forward to a strong rebound and profit opportunity.