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AI & crypto · Lesson 2 of 3

AI trading bots: what's real

5 min read · Intermediate · Free

A trading bot follows rules: buy when X, sell when Y. 'AI' bots tune those rules from past data.

Past data is not the future. A bot that looks perfect in a backtest can fail when the market changes — this is called overfitting.

No bot can guarantee profit. If someone sells a bot or a fund with fixed daily returns, treat it as a scam until proven otherwise.

Key points

  • Bots follow rules learned from the past
  • Great backtests can still fail live
  • Guaranteed returns = red flag

Education only, not financial advice. Crypto is risky — only use money you can afford to lose, and check it’s legal where you live.

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