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Crypto Regime Detection with a Local AI Agent: Bull vs Bear vs Sideways

Crypto Regime Detection with a Local AI Agent: Bull vs Bear vs Sideways

via Dev.to PythonPaarthurnax

Crypto Regime Detection with a Local AI Agent: Bull vs Bear vs Sideways Crypto regime detection is the skill that separates consistently profitable traders from those who keep getting wrecked. Most traders treat the market as one thing — when it's actually three completely different environments: bull (trending up), bear (trending down), and sideways (ranging). The strategy that crushes it in a bull market gets destroyed in a bear. This guide shows you how to build a local AI agent that classifies the current regime and adjusts your approach accordingly. Why Regime Detection Matters More Than Signal Quality Here's the hard truth r/algotrading learned the expensive way: a strategy's win rate is dominated by the regime it's running in, not the quality of its signals. An RSI mean-reversion strategy: In sideways market: 65% win rate. The market bounces between support and resistance. RSI oversold/overbought actually mean something. In bull market: 40% win rate. "Oversold" RSI just means a

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