Back in December 2024, Allora and Cod3x partnered to make AI agent trading smarter, more accessible, and more reliable for the DeFi space. The collaboration aimed to elevate AI agents built through Cod3x, starting with Big Tony, its first advanced trading agent. Cod3x sought to enhance its agents’ intelligence, with Allora’s AI-powered price predictions providing the perfect solution, enabling more adaptive, data-driven trading strategies that outperform single individual models.
This collaboration enabled Big Tony, Cod3x’s flagship AI agent, to integrate Allora’s collective intelligence, making his strategies more adaptive, precise, and efficient, allowing him to access several benefits:
- Smarter Trading Decisions – AI-driven price predictions to improve strategy execution;
- Adaptive Market Strategies – Machine learning enabled real-time market adjustments;
- Stronger Risk Management – Optimized position sizing and portfolio diversification;
- Increased Efficiency – Event-driven inferences to reduce compute costs.
With Allora, Big Tony was able to outperform the market, achieving a 21.7% increase in performance relative to purely holding BTC over the period.
Big Tony and the Power of Machine Learning in Trading
Launched by the Cod3x team in November 2024, Big Tony is one of the first advanced AI agents recognized for autonomously trading Bitcoin (BTC) and Ethereum (ETH) on the Base network.
Big Tony was developed specifically to demonstrate and showcase the capabilities of Cod3x’s no-code AI automation framework.
Big Tony was designed as a conservative trader, prioritizing risk management and capital preservation while still outperforming the market. Unlike itional trading methods that rely solely on fundamental or technical analysis, machine learning (ML)trad enhances trading by identifying patterns, adapting to new data, and automating decision-making. This dynamic, data-driven approach allows traders to stay ahead in fast-moving markets, making strategies more responsive and effective.
Supercharging Big Tony with Allora’s Collective Intelligence
In December 2024, Big Tony integrated Allora Network’s advanced price predictions, elevating his trading capabilities. By leveraging Allora’s collective intelligence, Big Tony gained a powerful edge, navigating market volatility with greater precision.
Cod3x explored multiple AI solutions to overcome the limitations of traditional indicators and enhance Big Tony’s trading capabilities. After testing various options, they ultimately chose Allora for its consistency and high-quality inferences, enabling Big Tony to trade with greater accuracy and agility.
Proving Allora’s Strength in High-Volatility Markets: Risk Management & Capital Preservation
Capital preservation in crypto is all about minimizing downside risk while still allowing for potential gains. With prices swinging unpredictably, the real key to long-term success is smart risk management. That’s exactly what sets Big Tony apart.
Since its activation, Big Tony hasn't gambled. He traded with a plan, balancing opportunity and security to keep his portfolio protected while still taking advantage of market movements.
Here’s how he did it:
- Played it safe, but stayed in the game – He only traded with 40% of his portfolio, keeping the rest in stable assets like USDC and Cod3x/USD;
- Limited risk on any single asset – No more than 10% of his holdings went into one trade, preventing any single loss from hitting too hard;
- Used Collective Intelligence to trade smarter – With Allora’s price predictions, Tony stayed ahead of the market, making proactive decisions instead of trading reactively.
Upon integrating Allora inferences into its trading strategy, Big Tony executed 241 Bitcoin (BTC) trades between December 2024 and end of January 2025. Over this period, Tony achieved an average profit of 2.54% per trade, demonstrating the power of AI-enhanced decision-making in navigating market fluctuations.
Comparing AI-powered Trading vs. Holding Strategy
- BTC Price on December 1, 2024: $96,461
- BTC Price on January 31, 2025: $101,543.88
- Holding BTC for the entire period: Profit of 9.2%
- Big Tony’s AI-driven strategy powered by Allora: Consistent profits, averaging 2.54% per trade resulting in a total profit of 11.2% (an increase of 21.7% relative to just holding BTC)
Starting from January 2025, Bitcoin faced major price swings, with volatility reaching six-month highs. While many struggled to navigate the chaos, Big Tony garnered a 21.7% increase in performance relative to holding BTC by relying on Allora’s price predictions. This period put Allora’s collective intelligence to the test—and it delivered, proving its accuracy, reliability, and ability to adapt in real time.
Big Tony Going Forward: From Hourly Trading to Event-Driven Execution
Big Tony initially operated on an hourly trading schedule, assessing market conditions at fixed intervals before making a trade. With Cod3x’s new event-driven system, he now waits for specific triggers before running inferences, significantly reducing compute costs while maintaining efficiency.
This event-driven architecture has reduced Big Tony’s compute costs by over 70%, as he now relies on real-time market signals to determine trade frequency instead of running fixed, scheduled inferences.
Beyond Tony: Bringing Allora Intelligence to Cod3x Users—Simplifying AI-Driven Trading for Everyone
Allora’s isn’t the intelligence layer just for Big Tony—now, all Cod3x users can integrate Allora’s advanced inferences into their trading strategies. With customizable signal weighting in the agent settings, users have full control over how much they rely on AI-powered intelligence versus traditional indicators.
Rather than relying only on conventional trading signals, agents can leverage AI-powered insights to make smarter, more adaptive decisions in real time.
Cod3x is making AI-driven trading easy with single-click automation, enabling anyone to build advanced trading agents—no coding required. Its low-code/no-code framework offers market analysis, automated strategy execution, and secure transactions, empowering users to trade smarter with ease.
Cod3x’s framework lets users customize their trading agents with pre-defined options, selecting tradable assets, trading duration, and risk management strategies. While Big Tony was developed to be a conservative trader, Cod3x users can choose from multiple risk profiles.
Cod3x users who choose a higher risk profile can still leverage Allora’s advanced price predictions. In fact, the greater the risk, the more crucial it becomes to rely on high-quality inferences for informed decision-making.
Conclusion: The Role of Collective Intelligence in AI Agent Trading
As we’ve seen, leveraging collective intelligence in volatile crypto markets gave Big Tony a serious edge over traditional indicators.
The integration of on-chain finance and collective intelligence is transforming DeFi, enhancing efficiency, transparency, and decision-making. With Cod3x’s AI automation framework and Allora’s collective intelligence, these advancements are already reshaping how traders operate.
Big Tony serves as a clear example of how AI agents can improve trading strategies and accessibility, setting the stage for a more intelligent and adaptive DeFi ecosystem.
Allora is the intelligence layer for AI agents.
About Cod3x
Cod3x is a cutting-edge DeFi project combining AI and blockchain to simplify complex financial operations. Its intuitive Agentic Interface turns multi-step processes into seamless, one-click actions.
Powered by advanced AI agents like Big Tony, Cod3x delivers real-time market insights, automated strategies, and secure transactions, making DeFi accessible to users of all experience levels.
To learn more about Cod3x, visit the website, X (Cod3x), X (Big Tony), and Discord.
About the Allora Network
Allora is a self-improving decentralized AI network.
Allora enables applications to leverage smarter, more secure AI through a self-improving network of ML models. By combining innovations in crowdsourced intelligence, reinforcement learning, and regret minimization, Allora unlocks a vast new design space of applications at the intersection of crypto and AI.
To learn more about Allora Network, visit the Allora website, X, Blog, Discord, Research Hub, and developer docs.
