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published in Blogs

Mar 02, 2018

How Artificial Intelligence Predicted the Bitcoin Crash

On January 17, Tickeron’s Artificial Intelligence (Pattern Search Engine) confirmed a “Broadening Bottom Pattern” for Bitcoin. The AI made a prediction was bold and difficult to believe, given Bitcoin’s powerful rise over the last year.

Tickeron’s Artificial Intelligence was predicting a -40.53% crash.

At the time of the prediction, Bitcoin (BTC.X) was trading at a little over $11,000, but according to the AI’s forecast, it believed with 88.78% confidence that the price was set to plunge below $6,000.

What happened next is astonishing:

● BTC.X ‘breakout price’ set by AI on January 17: $11,491 (reached on January 18)
● BTC.X price on February 5: $6,914

On a price basis, that marks a 39% decline, meaning the AI’s forecast was remarkably close to being on target. To note, the AI never makes any predictions with certainty, but calling for this Bitcoin crash is a significant indicator of the AI’s potential.

Here’s how the prediction was displayed at the time of inception. You can see the breakout price, target price, and an image of the “Broadening Bottom Pattern” in the chart:

For investors who are new to pattern trading, a Broadening Bottom pattern forms when a security’s price progressively makes higher highs (2 and 4 in the Bitcoin chart) and lower lows (1, 3, 5), creating two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first — in this case, the lower boundary.

For investors who are subscribed to Tickeron’s AI-powered Pattern Search Engine and received an alert of this Broadening Bottom pattern for Bitcoin, there could have been a few trading options. One option might have been to sell Bitcoin and buy it back at a lower price — assuming the trader believed the declines would be significant but also temporary. Another possibility would have been to purchase a put option on Bitcoin at the time of the AI’s prediction when the price was still high.

Start a Free Trial Using Tickeron’s Pattern Search Engine

If you’ve never seen algorithms and AI that can discover patterns in the cryptocurrency and stock market before, perhaps it’s because it has never been available to retail investors in this format. Tickeron’s idea is to provide retail investors with technology and tools to enable trading with massive amounts of data and analysis. The end result is arming retail investors with a high-powered, virtual research assistant: Tickeron’s Artificial Intelligence.

Start your free trial here: Pattern Search Engine

To note: the information in this post does not constitute investment advice, and Tickeron has no recommendation for Bitcoin or any other cryptocurrency. Investing in cryptocurrencies involves risk of total loss.

Related Tickers: BTC.X

John Jacques

published in Blogs

May 16, 2022

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I. Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.

Edward Flores

published in Blogs

Apr 29, 2022

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations. As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.

Sergey Savastiouk

published in Blogs

May 16, 2022

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.

Sergey Savastiouk

published in Blogs

Mar 14, 2023

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.

Dmitry Perepelkin

published in Blogs

Mar 14, 2023

5 Habits that Lead to Successful Investing

To consistently make money in this industry, you need emotional fortitude, an analytical mind, and a willingness to self-reflect. Despite trading and investing being two different activities, these principles can be applied to both.Conversely, investors with good habits often become great traders. Rather than full sentences for titles, we’ve labeled each of our top-five investing habits using a single word principle.

Allana

published in Blogs

Mar 23, 2023

What’s the Difference Between Data Analytics and Machine Learning?

Artificial intelligence (AI) technology is developing rapidly.Data mining can deliver raw numbers, but it does not necessarily provide actionable insights. Structure is necessary to taking abstract information and extracting commonalities, like averages, ratios, and percentages.

Sergey Savastiouk

published in Blogs

Mar 13, 2023

4 Tips for Fast, Effective Stock Analysis

With just a few clicks, an investor can search for individual stocks, categories of stocks, sectors, or investment themes, and then he or she can conduct a full range of technical and fundamental analysis within seconds.All powered by Artificial Intelligence. Below, we give you 5 tips for fast, effective stock analysis using Tickeron’s Screener.

Sergey Savastiouk

published in Blogs

Mar 20, 2023

5 Golden Principles in Investing

You have enough faith in that stock, based on research, that the return will equal or exceed the investment. Do unto others.The principles outlined here will ensure that happens. Principle #1: Diversification Investors can’t be one-dimensional when constructing a portfolio.

John Jacques

published in Blogs

Mar 24, 2023

If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements. The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets.Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.

Sergey Savastiouk

published in Blogs

Mar 15, 2023

The five most important Lessons Learned After 10,000 hours of Trading

Ten thousand hours of active trading, broken down into forty-hour weeks, amounts to almost five years. Having surpassed that milestone myself, I now understand why it's significant for any trader's journey. The early years taught me valuable lessons that have shaped my approach to trading. It's a misconception that great traders are born with innate talent. The truth is that it takes years of...