AI Powered Indicatorless Algorithmic Trading Bot for Cryptocurrency and Financial Market

Abstract

Accurate prediction of the future movement of the financial instruments is a major factor that assures profitability and minimize risk in a volatile, unpredictable and complex financial and cryptocurrency market. Many researchers have proposed various ways to correctly forecast the future movements of these instruments with various technical indicators but losses are still in the increase.In this research, we have designed a price action based AI powered indicatorless algorithmic trading bot that can correctly predict the future direction of any financial instrument in the cryptocurrency and financial market with the capacity to ensure profitability while minimizing risk. The system is indicatorless, and uses price action and artificial intelligence algorithm for forecasting market movement and eventual execution of a buy or a sell trade with little or no human intervention.Our result shows an improved performance compared to others methods with a very low maximum risk drawdown of 1.06% with a profitability ratio of more than 297% over a 22 months period of back testing using EURO vs. USD (EURUSD) currency pair.