Browsing through our strategies’ catalog, you will encounter sophisticated, algorithmic trading-oriented options. In this article, we will focus on Artificial Intelligence (AI) Pick, HAL’ crypto trading strategy.

AI Pick Strategy

What’s Special About Artificial Intelligence (AI) Pick?

Artificial Intelligence (AI) Pick is a multi-coin strategy, trading BTC and ETH following hourly or daily signals. It relies on a deep learning technology called a neural network to process a wealth of data and make complex decisions. 

This neural network has been tested and trained to pick what it thinks will be the top ETH or BTC strategies for the following 24 hours. Artificial Intelligence (AI) Pick ponderates three strategies among a set of proprietary trading strategies it expects to perform best, based on advanced technical indicators and statistical analytics.


Artificial Intelligence (AI) Pick considerates 9 different HAL BTC and ETH strategies – some of them yet undisclosed on the platform – covering a wide typology of trades. For instance, Wise: ETH and Wise: BTC are long-only strategies, while Pulse: ETH and Pulse: BTC are long-short strategies. Frequencies also vary, from medium-term (weekly signals) to short-term (daily and hourly signals). As a result, Artificial Intelligence (AI) Pick’s characteristics can vary from one day to the other.

How Has It Been Performing?

The Artificial Intelligence (AI) Pick strategy went live on October 10, 2021. At the time of writing (September 7, 2022), almost a year has passed, providing us with enough distance to analyze its performance.

AI Pick Strategy performance

Source: HAL, CoinShares – Past performances are not a reliable indicator for future performance. Capital is at risk.

Year-on-year key figures for this strategy are: 

  • Performance : +46.41%
  • Max Drawdown: -23.81%
  • Annual Volatility: 38.02%

In comparison, its underlying assets fared as follows. 

ETH:

  • Performance : -56,45%
  • Max Drawdown: -79,30%
  • Annual Volatility: 85,24%

BTC:

  • Performance : -63,35%
  • Max Drawdown: -72,17%
  • Annual Volatility: 65,82%

Artificial Intelligence (AI) Pick strategy therefore overperformed its underlying assets by 110%. In addition, although past performance is no guarantee of future results, it exhibited the best performance among all HAL (formerly Napbots) strategies, compared to the risk and drawdown for the past year.

Why Use Artificial Intelligence (AI) Pick?

Artificial Intelligence (AI) Pick is a very flexible and active strategy (with a high turnover), thanks to its use of deep learning. Instead of following a limited set of rules, neural networks follow sophisticated decision patterns, just as a super-brain would. They crunch massive amounts of real-time data to quickly react to market fluctuations. 

This plasticity is a great ally in a volatile market. Moreover, the strategy has historically performed well after big drops affecting the entire crypto market. 

However, keep in mind that your capital is always at risk, whatever the trading technique you wish to follow, as past results are no guarantee of future performance.

Disclaimer:

Investing involves risk, including the possible loss of all the money you invest. In particular, crypto-assets are a highly volatile and speculative asset class. HAL is only suitable for traders who are willing to bear the risk of loss and experience sharp drawdowns. Past performance is not necessarily a guide to future performance.

The purpose of this material is to provide objective, educational and interesting commentary and analysis on developments in the crypto-assets sector. Nothing in this material should be interpreted as constituting an offer of (or any solicitation in connection with) any investment products or services by any member of the CoinShares Group where it may be illegal to do so. Access to any investment products or services of the CoinShares Group is in all cases subject to the applicable laws and regulations relating thereto.