Have you heard about the Perceptron? It is not a Transformer, but it could transform your crypto investing strategy. Tune in to learn more.
Do you have a question you would like me to answer on the podcast? Follow me on IG: @indestructiblewealth and send a message, or visit me at www.myindestructiblewealth.com for more resources.
Listen to the podcast here
Juice Your Crypto Returns With Artificial Intelligence
In this episode, we’re going to dive into the exciting world of artificial intelligence-guided crypto trading. This is something that I’m going to talk about briefly in my book, but I wanted to dive into it in greater detail. This show gives me the ability to give you guys a little bit more of the backstory and how this all works. This is going to be a good service for anybody, regardless of where you’re at in your investment. Trading normally has a lot of risks, but with the new technology and how accurate this artificial intelligence-guided system is, this is going to be great for you, regardless of where you’re at on your financial journey. If you have a couple of thousand bucks, I don’t necessarily think it’s probably the best move for you to do. Beyond that, this is something that you could consider adding to your wealth-building portfolio.
Before we dive into that, a quick update, I’m final editing and format of the book. I’ve had a few people go through beta reading testing. The feedback I’m getting is off the charts. I don’t know if they don’t want to tell me anything other than it’s great because they’re my friends. I’ve begged and asked for critiques. The only critique I got was from my buddy, Tim. He said, “I’m saving you from a major problem with your book.” I’m like, “What did I say? Did I say something I shouldn’t have? Did I make some type of claim that wasn’t good?” He’s like, “No. In The Matrix, you said the red and the green pill.” I have The Matrix reference in the book. It’s the red and the blue pill.
What Is Perceptron?
People love that reference in the show. He said, “They’ll eat you alive.” I’m like, “You’re right. That’s a big deal that makes me look a little bit off on the reference.” I appreciate that feedback. That’s the only thing that I have gotten back so far. That’s good. Let’s dive into this subject. I am excited to talk about this. I’ve edited and looked at how I could make this simple for you guys to understand, so I tried to work hard on some of my bullet points here that I’m going to share with you about how this works so that you guys don’t get deer in the headlights while you’re reading this episode. Keep that in mind. I’m trying my best to simplify.
Let’s set the stage here. The human brain has always been the inspiration for artificial intelligence. It’s an extraordinary creation of 100 billion neurons. That’s crazy to think about. It’s impossible for our brains to even comprehend what’s in our brains. It’s a complex and unknown web of interconnections. Our brains are capable of incredible feats in a split second that the most powerful superconductors would struggle with nowadays. We can do all this with about the same amount of energy required to power a small light bulb. It’s no surprise that scientists have long been trying to create an artificial neural network based on our brains and neuron connectivity. These attempts go back to 1943, before the world had even invented the first semiconductor.
The earliest model was unable to learn, and it didn’t hold that much promise, but by the ’50s, things got a lot more interesting. Thanks to a Cornell psychologist by the name of Frank Rosenblatt. That name’s pretty famous. I remember reading about them in school. He invented something called the perceptron. Before we dive into that, how fucking cool is that name the perceptron? It’s like Transformers. The idea behind perceptron was that it was able to apply weights to the connections between neurons. It’s the weighting of the connection between the two neurons that enables an AI, Artificial Intelligence, for it to learn over time.
As it works on a set of data, it compares the inputs and connections to the optimal outputs. Through the process, it starts to recognize which connections consistently produce more accurate results. As it finds these strong connections, it applies a higher weight to those connections. It also applies a lower weight to connections that produce less accurate results. With each attempt at the weighting, the weights are changed, and the process repeats. Think of it as a living, evolving system. As more data is made available, the neural network will incorporate the data and keeps updating those weights. The easier way to think of these weights is to use an example from our own lives.
As we build our network of friends, family, colleagues, and advisors over the course of our lives, we learn whose opinions we can trust and who we should just say, “You don’t know what the fuck you’re talking about,” and dismiss them. Through our own experiences, we figure out which people from our networks consistently give good advice or information versus those who tend to do the opposite. You guys keep coming back to this show because you believe you’ve weighted me as a good source, a strong weighting on the advice that I give. That’s smart because I’ve got the results. What you always want to base a lot of your waiting on is, “Do they have the results in their own life? With the result that they have, is that something that I want?” We tend to naturally provide more weighting towards that.
We do this both consciously and subconsciously. It weighs heavily in our own decision-making process as we learn what to trust and distrust. What if a machine could simulate this very complex process and learn? The mission of creating a neural network is to help find high-conviction trades in the world’s most exciting markets, cryptocurrency, and digital assets. I can say that Neural Net Profits, which is the research that I subscribe to, and you can subscribe to get these picks, is unlike anything I’ve seen in the world. This took years and hundreds of thousands of dollars to perfect. You’re not going to have to compete with this technology. It’s not going to be found on Wall Street or in any hedge fund in the world. That’s great too. You’re going to have a lot of what Warren Buffet will call strong moat.
What was a moat back in medieval days? A moat was around the castle that prevented people from attacking or made them think twice about it and made it a lot more difficult. This gives us a moat in our investing lives that we don’t have to compete with these large institutional traders. It might sound like science fiction, but it’s very real. The first perceptron was run on an IBM computer a long time ago, as we said, in the 1950s. Compared to what we’re used to nowadays, it was archaic. It couldn’t do much. It took up an entire room. The problem was that the computing power simply didn’t exist yet to make artificial intelligence go. Our brains are incapable of incredible things. There’s only so much information we can store in our short-term memory, ready to use at a moment’s notice.Neural net profits give you a moat in your investing lives. Click To Tweet
This is where the power of unlimited data storage and computing power comes into play. The breakthroughs that we needed to happen in semiconductor technology over the last few years have brought the use of neural networks back to life after multiple decades of languishing and going nowhere. The reason semiconductor advances is why our smartphones, and I shit you not, are millions of times more powerful than all the computing systems used for the Apollo missions to the moon.
It’s crazy it’s in your pocket. It’s millions of times more powerful than what NASA sent Neil Armstrong to the moon with. It’s hard to consider and think about that. The real explosion and growth or the massive shift happened in 2014. That was when a transistor, a semiconductor, jumped from 5.7 billion to 2.6 trillion. That’s about 27 times the number of neurons in the human brain.Smartphones these days are millions of times more powerful than all the computing systems used for the Apollo missions. Click To Tweet
These developments allowed us to use the most advanced semiconductors and computing systems combined with the most advanced forms of AI to create exactly what we need to make more money, an AI-powered trading system that can predict the movements in asset prices before they happen. Do you guys ever remember Back to the Future Part II, where Marty buys the almanac from the sports trading store? He’s about to take it back in time to his former self so that he could have a leg up on picking winners and make money, and the doc goes, “No. If you do this, you could create major havoc on the entire world. You cannot use time travel for material gain.”
With an AI trading system, this is almost like having the sports almanac act that we all looked at and were like, “I’d love to get a copy of that thing and bet on games with reliable predictability and consistency.” Whenever I bet on sports, it does not end very well for me normally. I got to quit betting on the Cleveland Browns and Ohio State Buckeyes. I’m too emotionally connected to them. It doesn’t fucking work at all.Having an AI trading system is almost like having the sports almanac from Back to the Future. Click To Tweet
This is giving you guys the ability to predict with high accuracy what’s about to happen in the crypto markets. Put even more simply, we’re unleashing the power of a neural network to predict which assets will move sharply higher. It’s got to be in the crypto market because what else would it be? This is a large and liquid market. It changes super fast. This is perfect for an artificial intelligence-powered trading platform. We’ve never seen an asset class achieve the growth that crypto has, from $190 billion in January 2020 to more than $2 trillion nowadays. That’s more than 10X in two years. We’ve never seen anything like that happen in any type of asset class.
How Does Perceptron Work?
Here’s the thing. Why can’t humans do what this artificial intelligence system does? No matter how involved the industry people are in crypto, no one knows it all. There’s too much happening at the same time to keep track of it all. It’s impossible for one person or any team to be able to grasp everything that’s happening in real-time for an asset class that’s growing so quickly. That’s the purpose of the perceptron. It has a human-like intelligence to recognize patterns in the way we do, but on a scale, unlike anything even a team of the smartest people in the world could possibly do. The perceptron has been trained on around 6,800 cryptocurrencies so we can identify and learn patterns that result in strong buying and selling signals.Perceptron has human-like intelligence to recognize patterns in the way that humans do, but on a scale unlike anything seen before. Click To Tweet
How does it work? Every day the perceptron processes four gigabytes a day, representing 200 different data points for each crypto. This includes everything from price, volume, liquidity, concentration risk, and even social media activity related to the underlying coin. It considers more than 200 data points, and that’s even very hard for us to be able to comprehend how large of a data set that is. It crunches this data with one objective, find the assets that are poised for a sharp move higher. Here’s the surprise, we don’t and can’t know exactly how it decides. That’s the nature of deep learning. All we know is that it works. This is how well it works. The mean trading return from a strong signal from the perceptron is 93.4% in our testing. That means it’s accurate 93.4% of the time. That compares to a 33.7 return from the benchmark performance of Bitcoin over the same time period.
That’s an extraordinary difference in performance. It’s nearly 6,000 basis points or 60 percentage points better than the benchmark. In the world of hedge funds, outperforming a benchmark by 600 basis points is thought to be an outstanding performance. The perceptron is generating returns ten times that. It’s crazy. They did back testing, meaning that they put the perceptron to work in testing before it’s been released to us. It was determined that the strongest signals are from a 60-day time horizon. That means we know we can expect the big moves within 60 days of receiving the signal. We might have an idea of why the system is recommending the trade, but we won’t know the exact reasons why it made the choice. This is to our advantage because we won’t be competing with the high-frequency trading systems that dominate the crypto markets.
It’s estimated that as much as 80% to 90% of all trades are made by computers running algorithms. We don’t want to compete with the hedge funds running these systems. Why isn’t Wall Street used its own perceptron already? They got millions of dollars. They can absolutely have the resources to create something like this. Imagine you’re a scientist working at a hedge fund on Wall Street. You’ve developed your own perceptron. It spots high conviction trades one morning. The perceptron delivers an incredible signal for a particular stock. You’re floored. You know that AI works. It finds winning trades again and again.
This is the strongest signal you’ve ever seen. You share your discovery with your manager down the hall. You’re adamant, “We must buy this stock. We got to buy as much as we can now. I’ve never seen a reading like this before,” and then you’re asked the question, “Why did the perceptron pick the stock?” The answer is, “I don’t really know for sure.” This is a total roadblock to the adoption of this tech in traditional money management. There’s no hedge fund manager in the world that will deploy hundreds of millions of dollars into a stock without knowing why he or she is buying it.
They have to be able to provide an explanation to their investors for such a large trade. Therefore, they cannot do it. There’s an element of mystery to neural networks on how they decide on an outcome, and for this reason, they’ve not been adopted by institutional investors. That’s to our advantage. As intelligent, self-directed investors, we’re empowered to make our own decisions. We can use this technology for our gain even as Wall Street misses out.
What you’ll do is very simple. I’m going to wrap up here. You get an alert when you subscribe to this service, Neural Net Profits. You wait for strong signals from the perceptron, build your position in the crypto, and wait for the price action to follow. If and when the signal starts to weaken, we’ll close out our position and take the profits off the table. The results are simply extraordinary from everything that they’ve tested with this machine.
It consistently outperforms both the broad crypto market and Bitcoin by a wide margin. If we look at the April 2021 peak performance of Bitcoin, around 450%, and compare that to the peak of the perceptron around that time of 1,050%, that’s an incredibly deep difference in performance, more than double. Even during times when Bitcoin is in a down trend, the perceptron significantly outperformed.
The results demonstrated that the system was able to deliver a positive return 85% of the time. That’s incredible odds in your favor. Imagine if you went to play blackjack at the casino and were in 85% favor against the house. How much money would you bet? You bet a lot, and you keep betting because even if you lost, if you just did it again, you’re going to win 85%. If you’re a free throw shooter, you’re setting almost a record in college basketball.
Eighty-three percent was a team record this 2021. Eighty-five percent on any endeavor, whether investing, sports, or whatever, is a huge positive return. We’re going to run circles around the best-performing hedge funds in the world and create some incredible annualized returns. When you get a strong signal, you’ll get a media alert with the following info, the crypto ticker, the project name, the entry price, the maximum price you will pay, and a few other data points.
That’s the main thing you need, where you can buy it, and what exchange you can buy the coin. So far, the alerts I’ve received have been 20% and 23% in profits in the first three weeks. Those trades were closed out at 20% and 23%. That’s in a month. If you do that every month, that’s well over a 200% return annualized. That’s crazy returns with a high degree of predictability. I subscribed to this service and followed the last two trades. I have two open trades that hit. I’m waiting for the asset to rise in value like the machine says is coming, and I’m going to wait for this, the closeout, the sales signal. It’s going to tell me when to sell.
I don’t have to think about anything. I just follow exactly the instructions I receive and act on them as quickly as I possibly can when I get the alerts because things happen quickly. I missed a window of opportunity on one of the first trade alerts because I waited about six hours. By that time, the crypto had already risen beyond the buy-up to price. You never want to buy them over the suggested buy-up two price. It gets too risky, and you’re taking too much of a chance that you’re buying the asset too high. Go to Neural Net Profits. It’s BrownstoneResearch.com, and you subscribe to Neural Net Profits. I don’t know what the individual cost of this service is because I have a lifetime membership to all the services. You guys can go right there if you’re interested in this service.You never want to buy crypto over the suggested buy-up to price. It just gets too risky. Click To Tweet
Also, in my Premier Private Mastermind group, once I had my book and course done, I was going to launch. I’ll also be offering this service, the Neural Net Profits, within my private mastermind as well. If you’d like to explore adding this to your portfolio, once I announce that it’s open, you guys can join the mastermind or book a call with one of my team and learn how to get started and get involved in alerts delivered to you instantly whenever alerts are ready to go.
I hope this helps. Citing the new world of technology is creating incredible opportunities for you guys to profit. You just got to know where to look and act. I’m here to help deliver those types of alternative strategies you’re not going to find in traditional financial coaching or markets. I’m going to give you guys an edge on your investing and growing your wealth. Here we go.