Trader claims Bitcoin algo netted $71k profits, community disagrees
Crypto influencer Rekt Fencer shared a Bitcoin trading algorithm built with OpenAI’s ChatGPT, but users are skeptical about the bot’s results.
Trading algorithms are not exclusive to cryptocurrencies; they are tools in any financial market that automate processes. The idea revolves around establishing presets based on advanced mathematical models to execute trades aligned with pre-determined rules rather than instinct or emotions.
Rekt Fencer supposedly created one of these algorithms to trade Bitcoin (BTC) and pocketed $71,500. According to the influencer’s April 25 X thread, the bot leveraged the Bollinger Bands Indicator on TradingView.
It took 10 minutes to build this Bitcoin trading bot using AI prompts on ChatGPT, said Rekt Fencer. The OpenAI tool was also used to resolve coding errors and solve technical glitches that may be encountered in the setup process.
Users contest Rekt Fencer’s Bitcoin trading bot
Users challenged the post, surmising that the trader published backtesting results rather than live-market profits. Backtesting is carried out in a simulation environment and is often used as a dress rehearsal for subsequent development or real-world trials.
Skeptical community members pointed out that the X thread mentioned only profits and no losses, an unlikely scenario if actual trades were executed in the open market.
Observers also remarked that creating a trading algorithm is a highly technical process that AI bots, such as OpenAI, may not be optimized for. Users should be cautious when implementing any automated trading system and deploying real capital.
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