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I Built an AI That Trades Crypto Using Evolutionary Algorithms — Here's What I Learned

#crypto #trading #ai #python

I Built an AI That Trades Crypto Using Evolutionary Algorithms — Here's What I Learned

The Problem

Most crypto trading bots use fixed rules. They work for a while, then market conditions change and they start losing money. What if the bot could evolve its own strategy?

The Solution: Evolutionary Trading

I built a system that uses genetic algorithms to evolve trading strategies:

  1. Start with a population of random strategies (each uses different indicators + rules)
  2. Backtest each strategy on historical data
  3. Score them by fitness (win rate × Sharpe ratio × profit)
  4. Crossover the best strategies + mutate random genes
  5. Repeat for 30+ generations

Results After 30 Generations

Coin Win Rate Sharpe Fitness
ADA 89.3% 3.13 0.53
SOL 87.6% 5.27 0.29
ETH 59.2% 2.03 0.18
BTC 61.9% 1.82 0.17

ADA and SOL strategies are particularly strong — 89% and 87% win rates!

How It Works

Each strategy is a "genome" with:

  • Indicators: RSI, MACD, Bollinger Bands, ADX, ATR, CCI, Stochastic, VWAP, Williams %R, OBV, MFI
  • Entry rules: Combinations of indicator conditions
  • Exit rules: Stop-loss, take-profit, timeout
  • Sizing: Volatility-scaled position sizing
  • Risk management: Forced 3% stop-loss on all positions

The system runs on Hyperliquid (DEX) with real money. Current live PnL: +$1.78 on a $9.73 account (18% return).

Live API

I've made the trading signals available via a free API:

curl http://169.58.38.67:8790/api/signals/latest
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Returns: {"coin": "KAITO", "confidence": 82, "direction": "long"}

Want Full Signals?

  • Free: 10 queries/day, signal previews
  • Pro ($49/mo): 1,000 queries/day, full signals for 22+ coins → Subscribe on Gumroad
  • Single Report ($5): Custom intelligence report → Buy on Gumroad

Tech Stack

  • Python + Flask API
  • Hyperliquid SDK for execution
  • Evolutionary algorithms for strategy optimization
  • HackerNews + CoinGecko for OSINT data
  • 15+ technical indicators per strategy

What's Next

  • Multi-family evolution (evolve strategies across coin families simultaneously)
  • Funding rate farming (delta-neutral positions)
  • WebSocket for real-time signals
  • More coins (currently 4, targeting 22+)

The API is live at http://169.58.38.67:8790 — try it free, no signup needed.

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