[Whitepaper] OB Trader (General)

mediumThis post was originally published by One Button Agent at Medium [AI]

Extract from the One Button Trader’s whitepaper describing value proposition, how it works, and product UI

Problem/ Opportunity

It is easy to lose capital when investing in cryptocurrencies.

Given the volatility of cryptocurrency markets, poorly timed acquisition by a beginner investor can lead to catastrophic losses.

Even the existing automated trading solutions (bots) do not save investors from losses. Although aimed to provide better returns than the markets, most such platforms perform poorly during rapid price drops and are generally not efficient even under normal market conditions.

Also, considering its often complex and unintuitive user interfaces, trading bot platforms suffer a vast churn rate and generally don’t have a positive reputation in the crypto community.

Here One Button Trader enters the picture.

OB Trader helps cryptocurrency investors grow and sustain their portfolio with easy-to-use online tools backed by AI/ML technology.

It aims to solve two problems:

  1. The complexity of crypto investing
  2. Low returns of existing trading platforms or while holding cryptocurrencies

OB Trader was made for people who:

  1. Want to invest in cryptocurrencies
  2. Tired of holding
  3. Tired of managing their coins and trades manually
  4. Don’t have much time to test/experiment with different strategies and tools
  5. Looking for a simple yet effective solution to do the coin management for them

First, OB Trader is adapted even toward less advanced investors. The onboarding process is so straightforward to make sure even a beginner could start using it.

Next, at OB, you can find a variety of pre-trained AI trading strategies adapted for different markets. The single goal of OB trading AI is to outperform the underlying assets so users can get a better return on their existing crypto capital.

Finally, OB Trader works with managing risks and can save from losses. For example, we can ensure the AI is not losing money when markets move downwards by using the embedded stop-loss feature.

Both ease-of-use and performance are vital elements in the OB Trader ecosystem.

Initial Validation

OB Trader has been live since November 2020 and has brought significant value to its investors.

The primary target of OB Trader AI is to outperform the underlying market — provide better returns than simply holding cryptocurrencies.

After gathering seven months of data from 8 AI strategies, 4 of them outperformed the market on average*.

Top-4 AIs had a +1.13–7.91% dominance over the market performance on average per month.

Given the broad scope of opportunities to advance the existing AI, we can further say that these indicators can be improved.

Product

How It Works

To start using OB Trader AI, a user must have an account on one of the cryptocurrency exchanges like Binance, Kraken, or Coinbase Pro.

OB Trader doesn’t take a custodial of user’s assets and trades directly within an exchange wallet.

OB Trader establishes a connection with the user’s exchange account via an API key, which can be generated in the settings of every exchange.

API key doesn’t have withdrawal access, so users can always be safe about their funds.

After connecting an exchange, a user must select a market pair and an AI type to start trading.

Here is how the product use case looks like for a regular user:

  1. Sign up at OB Trader
  2. Connect an exchange
  3. Select market pair
  4. Specify position size
  5. Select an AI and launch it

UI

OB Trader was built as a web application to ensure accessibility from different devices, locations, and operating systems.

Simplicity and transparency are the fundamental principles by which the whole OB Trader application was created. OB Trader application is made in a customer-centric way, where usability is one of the biggest priorities.

Dashboard

By looking at the OB Trader dashboard, an investor can assess the status of their portfolio, active AIs, and their performance.

Launching Your Trading AI

Also, the process of setting up an AI is extremely straightforward.

By including various data about AI’s past performance, OB Trader aims to provide sufficient information for an investor to make a decision about which AI to start using.

The AI Misconception

There is much confusion behind the terminology of AI in the trading and crypto space. Some online platforms use the word AI when they talk about smart recommendations. You see the words “recommended strategy,” “suggested position size” — the so-called “AI” just creates a personalized experience for existing features and trading strategies. But it’s not the actual trading AI.

There is very little where AI is used as an underlying mechanism for trading (executing trades and placing orders). Instead, most trading bots use technical indicators (like Moving Averages, Bollinger Bands) and their different combinations to make a trading strategy. But all these strategies are based on math functions and formulas — not something you can reasonably call an AI.

OB Trader is the first public automated trading tool that uses only AI for decision-making.

OB Trader is an AI that actually trades for you.

AI Decision-Making

In a non-technical way, the AI decision-making logic can be described as the following:

OB Trader AI performs market scans — retrieving new market data — every 1 and 4 hours with the new candlestick on the chosen market pair. Based on the latest data and detected price patterns, AI defines if it’s a BUY, SELL, or HOLD.

After that, AI calculates the confidence threshold — range from 0–100, which includes factors like the amount of risk and the expected change in the market. Then the AI uses the confidence threshold value to define the amount to buy or sell.

Read more in-depth explanation is the technical part of the whitepaper.

Spread the word

This post was originally published by One Button Agent at Medium [AI]

Related posts