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In the words of an artificially intelligent Bitcoin trading bot, “Don’t trade.”

An AI trading bot that learnt how to timing the market and amass Bitcoin quickly discovered that simply “hodling” is the best way to go.

When it comes to amassing Bitcoin, “hodling” is the way to go (BTC). At least, that’s the conclusion reached by a Portuguese software developer’s AI trading bot.

Tiago Vasconcelos, a Bitcoiner, is the brains behind the trading experiment. Vasconcelos created an AI trading bot to help him amass more Bitcoin while also putting his coding talents to the test. Instead of trading, the bot rapidly determined that the best method to trade Bitcoin is to acquire it and hang onto it.

Vasconcelos is the co-founder of Aceita Bitcoin, a Portuguese group dedicated to encouraging Bitcoin acceptance, education, and information sharing. He is a Bitcoin enthusiast who also works on Bitcoin-related side ventures.

“It was a reinforcement learning AI experiment,” he told, “where I went and gathered a truckload of historical data from BTC/USDT.” From 2014 until 2021, the code sourced and scraped everyday price action.


“I trained it, or told him [the bot] the rules, here are the candles, you can purchase, sell, or do nothing,” Vasconcelos said.

The bot would be given one point for every successful deal. As a “penalty” for lost trades, the bot loses one point. Finally, the bot gets rewarded for the total amount of Bitcoin it has accumulated:

“The goal is for the bot to achieve the maximum possible score, and the exercise is for him to perform thousands/millions of tries on that set of data, creating a “mental” roadmap of when it is best to purchase, sell, and so on.”

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The beauty of AI is that the bot learns to notice “patterns” and “moves” that it performs in order to maximise its trading score, according to Vasconcelos.

“In the end, the bot decides that the best course of action is to buy as soon as possible and never sell!”

That’s right, now it’s not just well-known commentators and even banks in the Bitcoin industry that are yelling “HODL!” The robots, too, are hodlers.

Hodl is a popular Bitcoin meme that started in 2013 after a drunken contributor on the Bitcointalk forum misread hold. “Because I’m a horrible trader and I KNOW I’M A BAD TRADER,” GameKyuubi, the initial commenter, chose to hodl.

He may have been equally as intelligent as artificial intelligence all along.


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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