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Our thoughts on AI

AI is becoming more and more prevalent in our daily lives. Some of our team members have been working with AI since the big hype started in late 2022 to get a better understanding of how it works and what it can do. We have trained custom AI models for image and text generation in other projects that are now used every day and speed up our workflows immensely - reducing the time needed to create new content and designs. For trading however, we are still in the early stages of using AI and honestly, we are not sure if it is the right way to go. We have seen many projects that claim to use AI for trading, but often it is just a marketing gimmick/buzzword they use to attract buyers. In reality, they are just using simple strategies that are not using real AI or machine learning. We’re exited to see where AI will take us in the future and we are constantly experimenting with new ideas and concepts. But for now, we are not using AI in our trading bots.

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AI in Trading - A simple example

Imaging your e-banking app would offer to use AI. With a simple prompt you could ask the AI to pay your bills, transfer money or even invest in stocks. Would you trust it? We wouldn’t. AI is a powerful tool, but it is not perfect and can make mistakes. It is important to understand the limitations of AI in certain situations.

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AI in the crypto world

Now imaging AI in the world of crypto trading. The market is spammed with new tokens every second, rug pulls, scams and other malicious activities. Would you trust an AI to blindly trade your money? Some projects claim to be the golden ticket to riches by using AI - all you need to do is input a text like:
Buy TRUMP for $1000 with my eth balance when Donald Trump tweets about it.
and the AI will do the rest. Now if you’re technical savvy you might see the problem here. But for the average user this might sound like a great idea. There are already dozens of tokens named TRUMP, must rug pulls and scams. So how would the AI know which one to buy? Of course it could use some basic indicators like volume, price, market cap etc. but in the end it would still be a gamble. To make the above example work, you would need a lot more data in your input text. You would need to specify the exact contract address, the blockchain, the wallet you’d like to use, the slippage you’re willing to take, the gas fees you’re willing to pay and so on. This would make the input text very long and complicated and would require a lot of knowledge about the blockchain and the token you’re trying to buy. So in the end, you would be better off just doing it yourself.

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Our approach

We try to keep things simple and transparent and making the above example work with our bot is possible, but there is no magic AI that will do it for you. You create a Trend Bot that listens to Donald Trump’s X account and triggers a buy signal when a tweet is detected that contains the word TRUMP. You can customize the bot with all the necessary parameters like the contract address, the blockchain, the wallets you want to buy with, the slippage, the maximum gas fees and so on.
If you wan’t to be extra careful: Set your bot to Manual Mode, this way you can review the trade before it is executed and decide whether to execute it or not.
We believe that AI can be a powerful tool, but it should not be used blindly. It should be used in combination with human intelligence to make the best decisions possible.