Cryptocurrency day trading can make you a whole lot of money – data mining could potentially give you the edge. Data mining to give you an edge in market trading is a simple idea.
If you know what the crowd is about to do before they actually do it, then you could technically lead the field. Sell first and buy first – all before the crowds do.
For normal investors, this data is hard to read through and hard to decipher. Getting hold of the data necessary to even get an idea as to what the herd is about to do is a challenge in of itself. But let’s say that you were able to get a hold of the data. How would you get the data?
You could data mine by using Google ranking and looking at sentiment via articles and ranked links. But what about unranked links? How much is too much data? Would it be possible for bots to be given so much information that they know what is meant to be searched based on probability curves?
Maybe you don’t want to go through Google links. What about hiring help? Can we trust those we hire to have the judgement to properly and correctly categorize the information and data? What if we could get a bot to do it?
If we were able to master this, could we then get people the information that they’re wanting and needing without them even clicking on links for it?
That’s the next step towards bots and search engines. Instead of providing information as to what the user is trying to search for, bots are being trained to offer up what THEY think YOU want. If we can do this, then can we use this model to predict herd behavior?
We’re seeing more and more of this in advertising – Facebook is a big example of this model of advertising and behavior mapping. Based on some blog posts that a user reads, Facebook will try to guess what the user wants to read next.
Big retailers could be trying something like this too. If you’ve bought some clothes in the last year, maybe something to compliment what you bought the last time will show up in your recommended list.
Obviously, the code has to be refined. It needs to be developed, and then fine-tuned. But we’re getting smarter and better at it – brick by brick, coders are building software that is able to do the above with better and better accuracy with each iteration.
So what does that mean for us? Well, if successful, it means we can successfully data mine. We can train bots to learn.
Eventually, bots could be trained to sift through sentiment data regarding price manipulation. Could sentiment via social media be mined by bots and provide information?
It absolutely can. Bots have, and remain a force in trading. It’s just a question of “where” as to whether or not you’ll find them. Complex codes have made it possible for these same bots to start data-mining as well.
So what can these bots do? Answer questions such as “What do users want and what is publicly available to gauge sentiment? When do they want it?” These bots, through complex code, will be able to sift through the data and “read” it, far more efficiently than humans can.
So what does this mean to the average consumer, the average user? Do you see all those Tweets and Facebook posts about TRX, ETH, BCH, SV, etc etc.? It’s possible that while the attempts to sell YOU on a particular coin through social media, the actual purpose of those might be to gauge sentiment on those coins being referenced. Your comments defending a coin, another person’s attacking your defense – all those posts amount to comments referencing something that a Bot can read and data mine.
Of course, we can’t confirm whether or not these bots exist. But it’s interesting to see how the world’s foremost technologies can be used to influence almost all aspects of our lives, which, in this case, is cryptocurrency trading. What do you think? Do you think this is a reality? Already happening? Not going to happen? Let us know on our Facebook Page!
