AICOIN your alternative to AI Bot
If you’re an average retail investor who just saw a special article on artificial intelligence (AI), you probably thought to yourself “why can’t we use AI for crypto coin trading“? Then maybe you plugged the phrase “artificial intelligence crypto coin trading” or “artificial intelligence bot for crypto trading” or for “crypto coin supported by AI” into Google. We’re going to answer your question and hopefully we’ll all learn something along the way.
There are following issues comes in every one mind once after checking the information in google.
· Can I use AI for crypto coin trading?
· Can I invest in bot that use AI to generate signals?
· Can I invest money on AI based coins like AICOIN?
· Can other people use AI for crypto coin trading?
Here, I will try to discuss these issues in detail.
Can I use AI for Crypto trading?
Yes, you can use artificial intelligence (AI) for trading but first you’re going to need a better understanding of what this entails. “Cognitive computing” is defined as simulating human thought processes by using computer models. That’s pretty much what AI is all about, but we need to separate computing out between software models and hardware models. Google’s Tensorflow is a “cognitive computing framework” that is completely built out of software and could be run on any desktop computer. Google has also developed their own hardware chip that is optimized for Tensorflow and we identified a whole slew of startups that are looking to build hardware that is optimized for cognitive computing. So before you go using AI for stock trading, you need to answer three basic questions.
1. What AI software framework are you using or are you building one yourself?
2. Is there specific AI hardware you are using that is optimized for AI?
3. What data are you going to provide your AI solution so that it can generate alpha?
If you are building your own software and hardware like Google is, then you are really having to excel in software development and hardware engineering, both of which require a lot of capital. But if you simply throw Tensorflow on some NVDIA hardware in your garage and hire some cognitive computing developers, you can really start a company quite easily. Maybe this is why some estimates put the number of AI startups to be well over 1,500.
Don’t feel motivated to do that whole company building thing? Let’s answer the third question then.
Can other people use AI for crypto coin trading?
Yes, we’ve written before about at least three hedge funds using AI to generate superior returns for their investors. Take as an example the hedge fund Renaissance Technologies which is said to have “the best physics and mathematics department in the world“. The Medallion Fund at Renaissance, run mostly for employees of the company, has one of the best records in investing history having returned +35% annualized over 20 years. That means that if you put $10,000 in the fund back in 1997, you’d have $4.04 million in your account today. So yes, other people can use AI for stock trading and they’ve used it to realize one of the best returns in the history of investing. Is that what you were hoping to get a piece of?
For now you’ll need to try to get into one of the hedge funds we covered that are using AI effectively. Of course past performance is never indicative of future results. You also have to wonder, “just what’s keeping anyone from using AI for stock trading in much the same manner as these hedge funds do“? The answer is, nothing is stopping anyone from starting a company that uses AI for stock trading.
In August of last year we wrote about 6 companies that are using artificial intelligence for generating alpha through algorithmic stock trading. One of these companies, First Global Credit, can simulate 1,800 trading days in just a few minutes and is pitting trillions of virtual traders against each other in a giant game of evolution. It’s run by an Apple guy who worked on Siri and he’s not saying anything about the returns he’s generating. While Sentient is being secretive, firms like AICOIN are paying data scientists in bitcoin for their contributions to an AI hedge fund which has now crowdsourced billions of equity price predictions. Their big news was when some anonymous genomics scientist going by the name of NCVSAI racked up $13,000 in rewards and then cashed out. Let’s hope that individual went and started their own hedge fund.
Can I invest in bots that use AI?
Retail investors need to be very careful here. Using bot without knowledge can leads to total loss of the investment.
Then what is the solution?
AICOIN, A Coin Which Supported By AI
People throw around the phrase “artificial intelligence” everywhere you look these days. How can you tell where the “real” artificial intelligence is? You follow the money of course. You think that the guys and gals over at First Capital Credit are going to trust a company that says “we use artificial intelligence but we can’t tell you how it works because it’s a black box“? Absolutely not. They do their own due diligence, something that investors need to do before just buying into retail investing products that claim to “use artificial intelligence to generate alpha”.
Still, we’d much rather has an AI advisor instead of a human advisor. If AI is now beating humans at some of their oldest strategy games, it’s probably going to be capable of making prudent investment decisions. It’s like someone introducing you to your financial advisor and saying “this guy is a world champion Go player, a professional poker player, a champion chess player, and he was the champion in Jeopardy as well“. You’re going to be pretty certain that dude is going to be making better decisions than you would be able to, all things being equal.
While the asset allocation methodology for most robo advisors is very linear, we’re now seeing Crypto coins like AICON and firms like first capital credit use machine learning to create a “robo advisor which uses AI algorithms to invest”, just as we predicted. Which shows you some examples of how your asset allocation changes in response to extreme market events?