I have given the Reddit hivemind control of my portfolio – first week of buying cryptocurrency using an algorithm that analyses Reddit crypto sentiment

I coded and open-sourced a crypto trading algorithm that places trades on Binance based on Reddit post sentiment on relevant cryptocurrency subreddits.

Despite my rational mind telling me it's not the best decision to just let this run on a live account, I decided to bite the bullet and let the script run for a week with the following configuration:

• The bot scans the top 10 posts in hot on r/cryptocurrency, r/crypto_currency, r/cryptocurrencies and r/worldnews.
• It looks for keywords in the posts title and description, containing any of the top 40 coins by marketcap
• It then analyses the sentiment of all posts that mention any of the top 40 cryptos
• If the compound sentiment is positive, the algo will buy that coin.

With that logic in mind, here is last week’s performance broken down – all generated by the Reddit hivemind.

I am now hodling 11 coins in my portfolio, all because they were talked about positively at the time on Reddit: BTC, ETH, ALGO, XLM, ADA, SOL, LINK, DOGE, MATIC, XTZ, LTC.

Below I used matplotlib below to plot the daily gains/losses for all the coins:

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https://preview.redd.it/u4w94nthwy971.png?width=3341&format=png&auto=webp&s=ca8fe2000c30d547b4a7ad076141e2101d5adaec

Don’t want to jump any any conclusions just yet, but damn, this looks a lot better than I expected. I was fully prepared to incur some serious loss, but that’s not the case it seems. I trust the Reddit hivemind, for now, anyway. Yes there’s DOGE and LTC in there, but that can be avoided in the future by specifically excluding certain coins from being picked up.

It’s going to be easier to visualise the overall performance using a scatter plot, like the one below:

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https://preview.redd.it/7qu0v0uiwy971.png?width=3328&format=png&auto=webp&s=6e8c40565c3fd6709c93103106061dedb2ae3784

You can see here, that on the last day, we only have 1 coin in minus, all the rest are above 0.

Or better yet let’s just look at the raw data.

BTC: +3.8% | ETH: 6.5% | ALGO: -0.2% | XLM: -2% | ADA: +8.8% | SOL: +1.77% | LINK: +4.8% | DOGE: +1.5% | MATIC: +8.6% | XTZ: +5.3% | LTC: 6.1%

All that brings our Reddit crypto trading bot to an overall profit of 4.1% this week, which again – considering that me, as well as the Reddit community had multiple concerns that this strategy might actually work, I am well surprised.

I will let the bot run for another week, and then crunch the numbers once again.

If you’re feeling brave, give it a shot yourself – the repo is open if you want to implement your own version. 🙂