Thursday, February 22

Profitable Strategy Design for Trades on Cryptocurrency Markets with Machine Learning Techniques [PDF]

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Profitable Strategy Design for Trades

AI and data driven results have been applied to different fields and achieved outperforming and promising results. In this exploration work we apply k- Nearest Neighbors, eXtreme Gradient Boosting and Random Forest classifiers for detecting the trend problem of three cryptocurrency requests. We use these classifiers to design a strategy to trade in those requests. Our input data in the trials include price data with and without specialized pointers in separate tests to see the effect of using them. Our test results on unseen data are veritably promising and show a great eventuality for this approach in helping investors with an expert system to exploit the request and gain profit. Our loftiest profit factor for an unseen 66 day span is1.60. We also bandy limitations of these approaches and their implicit impact on Effective request thesis.

Profitable Trading Strategy PDF

Artificial Intelligence has widely been applied to different areas in the last decade and there have been reported a lot of improvements in results by using its applications. One of the very interesting areas of application is financial markets. There could be a lot of improvements in exploiting these markets by means of artificial intelligence and machine learning. Some cases of these applications include Loan Credit Scoring, Credit Evaluation, Sovereign Credit Ratings, Mortgages Choice Decision, Portfolio Management, Financial Performance Prediction and Market Direction Prediction.
In this paper we focus on the Market Direction Prediction problem and we look at it as a data science problem.

Successful Trading Strategy

One of very innovative usages of new technology in finance is cryptocurrencies. As we read in which has been quoted from a survey by Cambridge Center for Alternative Finance in 2017, a year which is not even comparable to what is the prevalence of blockchain based technologies now. As of the time of writing this, only BTC makes a market cap of $1,042,689,199,152 and a 24 hour circulating volume of $57,794,818,577 (Today’s Cryptocurrency Prices by Market Cap, 2021). As the dominance of BTC is 50 percent (Today’s Cryptocurrency Prices by Market Cap, 2021) at the moment, the total market cap of cryptocurrencies registered in Coin Market Cap database can be estimated as about more than 2 thousand billion US Dollars. This impressive amount of money shows a great potential for this innovative use of technology with increasingly facing new challenges (like expensive transaction fees) and tackling them over with innovative solutions.

Download the below PDF file. Download Profitable Strategy Design for Trades

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