Artificiall Intelligence integration for BTC price predictions on our OTC desk and cryptocurrency exchange

Since 2015 when Kaiserex cryptocurrency exchange was launched the most time consuming activity was Technical Analysis. This is a hard field to make improvements consistently and finding good entry/exit points is very important for efficient trading.

To tackle this problem we have integrated a proprietary Kaiserex AI bot which uses cutting edge technology such as tensorflow and self learns with more data and experience.

What the AI does, it gives us an opinion like weather forecast which says, BTC price will either go up, down or sideways in the next 12 hours. To do this forecast Kaiserex AI analyzes 35 different parameters feeded every 5 minutes.

These parameters vary from:

  • Current blockchain transactions
  • Trading volume
  • Market momentum
  • Rsi
  • Volume profile
  • Trend following indicators
  • Large wallet balances
  • Support resistance zones
  • etc.

Most of the data that AI uses is custom collected by deploying various data gathering algorithms and isn’t publicly available.

AI has several lawyers to it. It gives predictions for 6, 12, 24 and 48 hour time periods. Sometimes signals on these time periods can be completely opposite and usually they turn out to be aligned.

Our overall experience is that using these signals is more efficient than a human doing technical analysis and it is becoming more and more efficient with time and more data.

Below you can see a chart of AI created buy/sell signals.
Red arrow means a sell signal and green arrow a buy signal:

AI buy/sell signals on an hourly BTC/USD chart

Now when you place a buy/sell order on our OTC desk or on our exchange(based on time order) we will execute it according to AI scores which look similar to this:

AI prediction scores for BTC/USD price during next 12 hours

Scores are updated every 5 minutes. They are not guaranteed to deliver great results all the time, but in the long run it performs better than guessing or doing simple technical analysis.

Currently the biggest advantage of this AI is that it predicts when the market will go sideways with very good accuracy, which is 80+%.

Disclosure:

Kaiserex AI is far from a holy grail or an AI which could tell the future. It has made many mistakes before and is guaranteed to make them in the future. Therefore we use these signals with a statistical approach, meaning that we try to win in the long term many times over and do not over-bet on an individual signal. In our opinion signals we get from the Kaiserex AI are more reliable than technical analysis, because they include fundamental data outside of the charts and price action.

However when the market is being manipulated with buy walls, spoof trading, or other similar methods, all fundamental information and technical analysis might get discounted and AI ability to predict disappears.