Neural Network Algo Trading: A Guide to AI Predictions

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For years, algorithmic trading has been a game of “if-then” statements. If the price crosses this line, then buy. If this indicator turns red, then sell. It was a world of rigid, human-defined rules executed by dumb, fast machines.

But that era is ending.

The very cutting edge of crypto algo trading in 2025 is a newly developed system class based on neural networks, from the latest in academic research. These are not bots that follow simple instructions; they are AI trading systems where the only instructions provided are a set of adjustable parameters. They are deep learning systems designed to follow a human brain’s learning process. They will analyze market data, learn the patterns and make predictive decisions in less than a millisecond, using a process called back propagation.

This is a glimpse ‘under the hood’ of how this futuristic tool works, and for further trading.

Part 1: What is a Neural Network? (Think of It as a Digital Brain)