Back to articles
Building a Trading Bot That Could Turn $10K into $102K: xLSTM (DL) + PPO (RL)

Building a Trading Bot That Could Turn $10K into $102K: xLSTM (DL) + PPO (RL)

via Dev.toAllen Elzayn

My trading bot lost $176 in its first real backtest. Not because of a bug. Not because of bad data. The algorithm was working exactly as designed it just couldn't figure out when to exit trades. The bot would enter positions with 48.6% accuracy (better than random), hold them for an average of 27 bars, and then... panic. It would close winning trades too early and hold losing trades too long. Classic human behavior, except this was supposed to be an emotionless machine. That was Run 4. Two runs later (Run 5 and Run 6B), I had a system that generated $507 profit on completely unseen 2024-2025 data (1.87 years, 45,246 bars), with a Sharpe ratio of 6.94 and max drawdown of 0.98%. For perspective: With proper position sizing (Half Kelly), that same system could turn $10K into $102K over the same period. Compare that to: Savings account (5% APY): $11,025 S&P 500 (11% avg): $12,321 Hedge funds (12%): $12,544 This is the story of Amertume a gold trading bot built with xLSTM (Extended Long Sho

Continue reading on Dev.to

Opens in a new tab

Read Full Article
2 views

Related Articles