An Interview With Minotaur Trading Systems

Removing emotion, Removing emotion, Removing emotion ,Traditional manual trading is unfortunately ridden with emotional pitfalls. Fear, greed, overconfidence, and hesitation will lead to poor decision-making and significant losses. Automation really is the key to ensuring that trades are executed based on data and logic, completely eliminating emotional interference. This results in more consistent and rational trading decisions. In an exclusive interview with BitcoinWorld, We discuss what is Minotaur Trading Systems, Is All About!

• Can you briefly explain what differentiates Minotaur’s smart bots from the common grid bots in the market?

Grid bots are inherently limited due to their makeup. They focus on establishing a price action range and trading within that designated range to profit. The problem arises when the market breaks out either to the downside or upside, causing them to go out of range and incur losses or be stuck for extended periods. The biggest issue is not the concept of the grid itself, which can be profitable when applied correctly, but rather the limitation of being profitable only in a very specific market condition (sideways price action). Our strategies are designed to excel in downwards market structures while also profiting well in sideways and upwards markets. Bitcoin’s price action is dynamic, not static, so having a strategy that can only succeed in one of three potential environments will never have longevity or sustainability. We have developed an algorithmic system that allows us to flourish in all market conditions.

• How does the integration of AI with human expertise in Minotaur’s smart bots improve trading strategies?

 Focusing on AI elements such as deep learning and data reprocessing, we can create a synergy between a learning environment and mathematical calculations from a quantitative perspective. Deep learning allows our systems to identify complex patterns and trends within vast amounts of data, continuously improving through exposure to new information. By reprocessing this data, we can refine our models and enhance their predictive accuracy. This approach, combined with quantitative analysis, enables us to apply mathematical techniques to market data, optimizing our trading strategies. The integration of these AI elements ensures that our algorithms are adaptive, robust, and capable of navigating various market conditions effectively, thus providing a comprehensive and dynamic trading solution.

• What specific advantages do your smart bots offer during unexpected market conditions, such as black swan events?

That’s a great question, and it ties in perfectly with our earlier discussion about grid bots, which is highly relevant to this topic. Imagine running a grid bot during a black swan event, where the price action breaks down significantly. In such a scenario, if your bot goes out of range, you risk liquidation due to the extreme volatility and unpredictability of the market conditions. To gain an advantage over these unpredictable events, you need a system designed to thrive even when the market is falling. Without delving into the specifics of our strategy, we focus on the efficient use of capital and position sizing management to ensure we never deploy all our capital in any scenario, whether the market is bullish, bearish, or ranging. By effectively managing the amount of capital invested at any given time, we can prevent significant losses and strategically exit the market when necessary. This approach contrasts with the buy-and-hold strategy, which, while potentially very profitable, requires substantial emotional discipline to hold onto assets and weather the market’s ups and downs. For instance, research conducted in Taiwan over several years found that less than 1% of day traders consistently earned positive returns after accounting for fees. Similarly, studies suggest that 80% to 97% of retail traders globally fail to make money in the markets, with only a small fraction achieving long-term success. Additionally, the buy-and-hold strategy is directly correlated to Bitcoin’s price, whereas our system allows for more flexibility, enabling entry and exit from the market as conditions change. 

• Could you elaborate on how Minotaur’s platform uses AI as a supplementary tool rather than solely relying on it for trading strategies?

One thing I want to make really clear during this discussion is a common misconception: the idea that AI in a trading environment is a new, exciting tool that will enable every retail trader to succeed. In reality, AI has been used in price analysis for the last four decades. Jim Simons’ Renaissance Technologies, for example, utilized machine learning and data reprocessing to gain a market edge long before “AI” became a buzzword. Leading the technology development of Minotaur, I draw inspiration from early mathematicians and quantitative analysts who pushed the boundaries of what’s possible in trading, even before it became “cool.” However, it’s crucial to recognize that the human touch remains an incredibly powerful tool in trading. This is why we believe in the synergy of both AI and human expertise to achieve success. Our use of AI enhances our pre-designed mathematical models by enabling us to reprocess millions of candlesticks worth of data to identify patterns. This combination of advanced technology and human insight is what gives us a greater edge in the market. 

• How does the blend of AI and human expertise in your smart bots translate into everyday trading for retail investors?

I love this question! I am so passionate about educating retail investors on the harsh reality of the market because I am human and went on the exact same path as every trader who tries to figure out how to get financial freedom from the markets. The biggest problem I see with retail traders is an unrealistic expectation of what is possible when it comes to returns and the harsh fact that it is in our DNA to be emotional; we are trying to control something that we have historically very little control over. I genuinely believe that manually trading a market is borderline impossible for a number of reasons. Even in scenarios where traders have amazing growth months or good calendar years, the longer they stay in the market, they will eventually succumb to emotion and give all the profit back.  Let me make this CLEAR: We have not created a magic money-printing system that continuously profits daily and allows your account to be in the green 24/7 while never suffering a losing day and achieving all your wildest financial dreams in a matter of weeks. If you are looking for that (which most retail traders are), let me tell you now it does not exist. Not only does it not exist, but you are also actually a bad fit for the market! That might be painful to hear, but it’s the truth. In regards to what our product looks like in an everyday environment for our customers – What we have created is a system that can completely remove emotional attachment to the market, manage your risk, and effectively give you consistency in a highly volatile and unpredictable environment. But retail investors need to learn that having success in the market does not mean always being in profit. At our core, we bridge the gap for day traders to have access to institutional technology that gives the blessing of longevity and sustainability in a financial market with complete automation. As amazing as technology is, running this still requires discipline and education on the reality of the market.

• What are the main benefits of using Minotaur’s smart bots compared to traditional manual trading methods?

Removing emotion, Removing emotion, Removing emotion. Can you see a common theme here? While I love discussing the technical intricacies of our system and am immensely proud of them, the simple fact is that our product’s ability to effectively manage market entries and exits without the hangover of trader’s regret is KEY. Traditional manual trading is unfortunately ridden with emotional pitfalls. Fear, greed, overconfidence, and hesitation will lead to poor decision-making and significant losses. Automation really is the key to ensuring that trades are executed based on data and logic, completely eliminating emotional interference. This results in more consistent and rational trading decisions.

• Can you discuss the potential of smart bots to make trading more accessible for newcomers?

By closing the most difficult gap to profitability through automation, Accessibility and success for retail traders is something that will organically play out as traditional manual models get flushed out by the consistency of algorithmic models. My vision for the market moving forward is seeing the statistics i spoke about earlier significantly shift in the favor and overall success of retail traders

• How do your smart bots help maintain trading discipline and manage risks, especially during market volatility? 

Our algorithms are designed to maintain trading discipline and manage risks, particularly in volatile market conditions. The integration of advanced algorithms, real-time data analysis, and predefined trading strategies ensures a data-driven framework for navigating the complexities of the financial markets. We leverage sophisticated algorithms that are designed to execute trades based on quantitative data rather than emotional biases. These algorithms analyse historical price movements, volume, and volatility metrics to identify optimal entry and exit points. Moreover, our smart bots utilise a predefined mathematical position sizing strategy to manage risk exposure. Position sizing algorithms determine the appropriate amount of capital to allocate to each trade based on the trader’s overall risk tolerance and the specific risk characteristics of the trade. This ensures that no single trade can disproportionately impact the trader’s portfolio, thus preserving capital and enhancing long-term sustainability