Topic: Does Decentralization Geeks also Trade using AI? (Read 270 times)

The question was really good and it came to my mind due to someone else's post so i think instead of asking that person i should ask to all of the community here so i made the topic. And i got some good replies from members i think you should read some. If you haven't. And yeah privacy is also matter, but to overcome such problems there are open source AI tools about which Hamza2424 mentioned here and you should check them but i am not recommending to use them just observe them because i can not advice anyone to follow things which i am not following. So DYOR.

AI is good for trading, where it will help you to automate your decision based on the current market.
But I think the AI you will use is needed a lot of inputs and configurations or algorithms.

So for me, to answer OP's question, I can say yes, even these decentralization geeks also uses AI, but not all because some could use some fundamental for them to trade.

I came here from via the link you sent on that post talking about Aimbot, the bot trading platform and I'm glad I did as you asked a vital question here. Personally I've used the Bitget's exchange AI trading bot and seeing your question about whether a pro dex supporter would use AI trading bots or not, I'm also curious to know lol.

Ok i got your point, but you said such AI bots are not yet made, and i agree with that because i also said, such BOTs are managed by some person behind it of course. Because i have seen some bot platform who select the pairs or at least suggest you to invest in such pairs to earn more profits. If i come to get there links i will share but currently i lost their track. So sorry.

But i agree that there are many bots scripts available and i think if a person preferring DEXs over CEXs due to middleman factor then those will definitely shift there interest towards such scripts which are publicly available but such bots integration must not be easy for newbies or at least people like me (who likes spoon feeding just kidding).

I highly doubt there's a bot that can efficiently make decision and take into account different factors that move the market... at least for now. There's a lot of difficulty in it in the first place, the first that I can think of is being able to access high-volume live information that it can translate into maybe two states, one that can affect the market and one that can't. This is an extremely simplified model and would probably give out a lot of wrong results, but filtering it through something like this in varying levels that make it a lot more specific can bring out a hopefully good result, but as I said, there's the difficulty of being able to access live data in the first place.

Plus, identifying a methodology that can filter it out wouldn't be that easy to make, there's no guarantee of its accuracy of it in the first place as well. If we were making a simple script like taking the top 10 coins and investing, then it's a lot easier, but making a bot that can find a new coin which can pump and give massive profits? Whole other thing.

In my opinion, regardless of how safe it is to utilize bots or AI, I will not rely on them for my trades because there is no guarantee that you will earn from them. Markets are not set to continually perform the same price action; price movement is determined by supply and demand. So it's better to perform a self trade; if you just keep learning, you'll build a trading expertise in the future. Even if you lose your trades, you will have learned something. A few traders use bots since they are unable to profit on their own. If I were them, I would copy-trade since the person you are copying is a legitimate trader.

Yes, but predicting Bitcoin is not something that can be learned. The fame of A.I. has emerged after the success of ChatGPT^[1], but in the end this product is for texts and trying to find the best result from billions of data. Predicting the price is a function that is as close to random as possible in the short term and can be predicted in the long term. So say that in 20 years the capacity of the Bitcoin market will be several trillion dollars, and then it will be less volatile and easier to predict. Also, within 30 years, we will have enough events to predict the impact of any future event.

[1] https://chat.openai.com/

Nah Nah I am not talking about the API views (So called scripts), You've lost track again here we are talking about the Bots... A Bot is a Bot there is no operator behind them except for the program or smart contract.. In a Decentralized space, after verifying the script that it's not related to any third-party operator access (After Audit) you can safely use it. In centralized Platforms as I said in the last post why he'll worry about already being a centralized platform where already his assets are on the pitty of the Platform?


Haha, i think i had already covered this answer in my last post, AI can't work like that buddy.. As I said we are far away from such AI. If there is no script like that still I am true buddy it's not me who brought this idea I did an explanation on it only, it's your mindset where you want an AI to do everything which currently seems not possible and it will be at high risk because AI can't reach the maximum efficiency where it will select the trading pair and then make favorable trade, Do you really think there will no risk after 1 or 2 incidents of a major loss, if they happen would anybody like to use them. (Incidents like AI selecting a Third class Pair of shitcoin on the basis of an algorithm working on the pumps and dumps it will be a disaster for your portfolio).

The AI Automated trading will introduce a large set of unseen consequences it will open a new world for market manipulators where they will try to suppress the AI algos to steal your funds in a legal way haha.

Except for the Finding coin, all the features are on 99% Scripts you can find them on Github (Solution Scripts), Even some DEXs.

Carbon DeFi

As a trader you can take advice from these newly created AI tools but they are still not mature enough to trade in place of humans. The day when AI will  replace humans in trading market has not arrived yet. So for now we have to rely on our brain to earn profit.
AI tools are still very new and there are not many folks around who have explored these tools fully. Unless one hasn't explored these tools fully he must not hand over his capital to these AI tools.

I was talking about AI trading platform which holds onto your assets completely like a new app installed in your phone asks for many permissions the same way these AI platforms (which might have some person as operator behind those bots too) ask you to give them the usage permission of your assets and they also sign a policy contract from you to prove that you are the one who will be responsible.

I did understand what types of script are you talking about in the recent few days j also read many topics or replied in few topic in which OPs wrote some scripts. Some write scripts to get Korean exchange data in Trading view, some wrote scripts to make a pattern strategy and some make to automate their trading experience.

But tell me is there any script that is publically available for us to copy and paste on what? Let's say on a DEX maybe. And that script will find a best coin, set margins, start trade, book profit, end trade. Is there any script like that then you are true dear.

And thanks for such insightfully reply. I really appreciate it because it also helped me to think both ways.

There’s already a trading bot where you can use the default settings and it will trade on your own, this is ideal for a busy trader but still want to do some trade. Using a trading bot can’t make a guarantee profit anyway, and that’s why many still prefer to trade on their own since some bot platform are asking for a fees which is not that cheap. AI is growing but I still believe it can’t crack trading as this is controlled by the market supply and demand.

AFAIK yes, you are completely on the wrong track Bot trading, Ai Bot trading Grid bot trading, or whatever you want to call has nothing to do with Centralization and decentralization.. A person who is already trading on CEX doesn't care about the bot script and how it is working in order to process trading all he means is regular buying and selling..

For a person who is already on the DEX is not really trading all the time because you should know in AMM DEX for each communication with blockchain you have to pay gas fees, the amount suffers with the change in blockchain as its quite variable one very blockchain.. even layer to layer it varies..

So without being Futuristic first of all DEX trader can't afford the Bot as he will prefer the Self trader, for a moment let's imagine a rich trader like not as me and you can use really use a trusted script for that purpose all he needs is to know to integrate them, (Here I am talking about third party solution). Even some platforms offer their in-built solutions so that the smart contract is open source and the trader can verify weather the Bot is trust worthy or not.. Simple


Haha, Buddy what the difference,  what makes them differ from others just a price alert most probably you can find that feature on maximum scripts.. As far as I know. A bot will be a bot weathers its Ai base or not what can make the Ai bot differ from others is just that the AI bot will have some triggers, such as a volume trigger, Liquidity trigger, and Price trigger just that's it.

Now Ai is not enough developed yet to make a fully descriptive and technical analysis for you taking into count the all fundamentals of that project. We are still far away from such Ai.


__Regards Hamza... Ask anything I can make more clarification on the idea or queries as well just make sure to ask in a descriptive manner.

Maybe there are some AI who are like that or works in manual way but many AI's right now are automatic. They are the ones who will give us an analysis. But as you said, losing is still possible so we should not expect too much on them. To aid us on gathering data is already a big thing. This is their true purpose. AI is already playing its own role in this field.

In the next 20 years, the price may not increase anymore but there must still be volatility, bear market, manipulation and other factors so predicting its price will still be a pain in the ass but the use of AI might increase later on. Forex and paper money trading is more predictable because they are not as volatile as Bitcoin. They are heavily regulated.

The outputs of AI depend on the analysis of the data that is entered for it. Unfortunately, all previous historical data and analysis do not give accurate results or 100% prediction or a good degree of reliability in the medium and short term. Therefore, artificial intelligence will not play a role in this field, and all reliance on it will be in models. with questionable accuracy.

Perhaps, after 20 years, the price of Bitcoin may be easier to predict, and here AI will have a greater role, and this thing we can see in forex trading and paper money trading, in which the price direction can be predicted more easily than what happens in Bitcoin.

So as an answer to your question, the codes are available but the data is not accurate.

I do not risk putting trading assets under the control of AI for several reasons:

First of all, I do not think that the development of artificial intelligence has reached a stage where it can trade and manage capital in an optimal way (I read a funny article about an AI robot that borrowed a million dollars to make a profit of $2!!!! ).

Second: I do not prefer to hand over my sensitive data to AI because after all it is just a script and it can be hacked and thus can cause trading assets to be hacked.

But in the end, I am not against the idea and experiment.

With this, you are saying that the bot runs everything and just let them use your funds and capital for trading entirely? I wouldn't bet too much on it. Like not too much money because I want to be accountable for my decisions. I'm willing to at least try if that happens but right now, it's just minimal.

Is there a service that offers that already? I know that Ai helps with making strategies but not decisions. Mostly it has disclaimers for that though.

In order to get the full range of trading features that active traders have used so far and which also allow integrating AI technologies with an orientation to the ability to manage assets, you will most likely have to deal with a centralized platform. At this point, demands for decentralization are no longer relevant, not because of the AI but the trading platform used.

After all, if you authorize an AI to manage the assets of a wallet you have uncensored access to, it remains decentralized. But I wonder if nowadays there really is an independent AI robot where it is able to manage everything with full authorization including choosing which trading platform is suitable and can automatically register there.

AFAIK, no AI bot trading platform will promise that you will definitely make profits even in the policy section they ask you to agree with them that even if the funds are lost then you will be responsible for it not us. Thus, this also included another factor to avoid AI trading bots. I think their exists some non KYC AI trading bots but they are risky too.

You have shared a good piece of information here, Is there any way that i can see it's implementation and working process, that i only wanted to test it without doing any more work. Hehe. I just wants to save some time but let's see, how good is it, And what are you opinions and review about this bot like have you tried it? if yes then what was the results you observed

It's depends, but in my opinion no if a guy prefer to chose decentralized platform to hold, invest, trade his Assets then why would he chose a platform which is centralized. Just because that Centralized platform of AI bot will made him profits. I think, answer to your query is in your post already. Which is very obvious that, a person will not prefer to choose centralized platform if he has already made up his mind about decentralization.

But still, there could be many possibilities in which one might chose centralized platform like many people who don't like CEX but they use them. Same way, those people might be using the CEX AI trading bots too. But according to the post you quoted, many people suggested to not rely only on AI bots for trading purposes while you have to get benefits from the AI technology to increase the accuracy of your predictions. So, why would a person who care about anonymity so much will risk his assets too.

Not everyone of them uses the trading artificial intelligence bot and you can have a glance to the number of professional trading institutions that we have and how they employ trading experts for their activities in trading and use of bot may not accurately be able  them the expected results they have already targeted, i have never used any before so I may not really know the more advantage or disadvantages in using AI for trading.

Almost all CEXs use trading bots to create liquidity, maintain it and for many other things. Therefore, the use of bots in this field is old, and artificial intelligence may come to improve results or speed up the execution of tasks. Since you are looking for a bot that works with AI, all you need is that be AI prediction mechanism.

This is an open source code with which you can get price forecasts of bitcoin prices using AI https://github.com/albert-espin/bitcoin-prediction
what you have to do now is link these outputs to any of the traditional trading bots, and you will have a fully automated AI trading bot. As I mentioned, the role of artificial intelligence here is to predict Bitcoin prices only.

You will find more projects here https://github.com/topics/bitcoin-prediction

If you can do proper trading analysis then you can manage trading using AI or BOT, but if you only want to get very good results using AI or BOT then you might lose your fund. Because trading skills and long practice can make you a skilled trader, trading can be very risky for you if you don't have a lot of experience in contrarian trading.

Note: You need to have a good understanding of the tools to increase your chances of success.

They should also not minding the risk of there privacy. If it is guaranteed to make profit for a trader who has been recording losses, I think they will give in to Al trading if the bots will make profit. Most people that dislike KYC will think otherwise if there is guarantee that after KYC, you can make profit. But what is the point after KYC, no profit is guaranteed.

There definitely is privacy risk in automating your trading process entirely as the creators of the bots and AI tools will require administrator access to function and that means they can steal your information and also your funds.

If you are trading on a centralized exchange, you are already exposed to a privacy risk, but that does not mean you can take up more risk as that exposes you even more and to newer, low reputable services.

- Jay -

I do not really know much about the AI that traders used more for trading, but the exchanges that traders are using to trade like that are centralized exchanges. So what is centralized is centralized. But what I see more about those AI are lack of privacy for people that are using them as the developers steals information from users.

A recent thread motivated me to ask this query because according to that post, OP asked which would you prefer self trade or AI trade. And i thought why would someone promoting or encouraging or the ones who prefer decentralized system. Will use AI Bots. Because AFAIK, in order to do AI trading. Don't we have to hand over our assets or i must say allow the Bots to use our assets as they want. So that they could make us some money.

Why someone, do not even like the centralized platform (CEXs, ETFs, CBDC) etc. will hand over his or her assets to a centralized bot so that that bot could help them to make money. Does decentralized enthusiast do AI trading or not. Or i am the one taking the whole thing wrong.

Because those AI, are managed by single entity or organization who would have all the data of you plus to register with one AI bot you also have to accept so many policies and have to provide so much documentation too. But their also exists other bots that require you to give less documentation and ask you to agree with less policies.

Note* i am not talking about bots that automatically make your trade and end your trade. and all you have to do in those bots is set stop limits for profits and loss. I am talking about bots which suggests you to make trades at specific prices and also make those trades on your behalf.