- Recent performance of AI strategies redefines an age-old trading principle.
- DeepSeek dominates the AI strategies ecosystem with exceptional performance.
- AI models are redefining cryptocurrency trading.
Binance co-founder Changpeng Zhao has identified a developing pattern in AI trading that contradicts an age-old belief related to the principles of successful trading. Zhao highlighted his observation in his latest post on X, following DeepSeek’s dominance, and how the AI model has outperformed other AI solutions in cryptocurrency trading.
AI Strategies contradict age-old trading philosophies
According to Zhao, the age-old philosophy suggests that trading strategies are most effective when they are unique and superior to the rules applied by the majority of traders in the same market. That assumption stems from the fact that using similar strategies leads to a mob approach, where traders buy and sell simultaneously, with no one performing better than the others
Related: AI Trading Bots: Powerful Assistants or Flawed Predictors? A Deep Dive
In the meantime, Zhao’s observation about DeepSeek’s success could trigger a counterargument about the effect of having many people using the same system. Zhao noted that many people using the same AI could generate enough volume to move the market in a particular direction at any given time. He believes that this hypothesis could encourage more people to test AI systems, leading to a spike in trading volumes soon.
DeepSeek is outperforming other systems in a bullish market
DeepSeek led the profit margin among a collection of AI models trading on the Alpha Arena trading platform. The platform’s data reveals a clear pattern across the AI solutions, which involves take-profit and stop-loss for each trade, a rule that humans may not follow strictly when executing trades manually.
Related: Bitcoin Q4 Bull Market Intact as CryptoQuant Analysts Flag Signals Toward $130K
In the meantime, crypto analysts observing DeepSeek’s impressive performance in recent days believe it may be too early to judge the AI model’s success rate, considering that most AI solutions are currently bullish. They may wish to review more data in the future, probably under different market conditions, before concluding on the efficiency of this emerging trend, where AI strategies are taking over CEXs and DEXs, becoming the go-to model for profitable crypto adventures.
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