Machine Learning for Crypto Portfolio Management Case Study: Week 4

This was the fourth week of our case study that will evaluate the application of machine learning for portfolio management. The methodology for this study was first outlined in our previous article.

Each week, we will publish an update to highlight interesting events that took place over the last week, break down the performance metrics from the last week, and provide any changes that will be made to each portfolio.

History repeats as Nomics once again leads the race while the SC Index stays positioned at 2nd place.

Shrimpy ML Strategy

The Shrimpy ML Strategy leverages the 7-day price predictions generated by the Shrimpy ML engine. These price predictions are then used to determine which assets should be placed into our portfolio for this week. Additional information regarding the methodology can be found in our previous article.

At -10.05% Shrimpy’s predictions stand right between the DeFi and Smart Contract indexes performance-wise. 

Portfolio Allocations

Each of the following assets were allocated exactly 10% of the total portfolio value for the fourth week of this study.

1. Bitcoin Cash ABC(BCHA): Projected 7-day profit: +174.14%

2. Maxonrow(MXW): Projected 7-day profit: +139.22%

3. LABS Group(LABS): Projected 7-day profit: +112.90%

4. Mask Network(MASK): Projected 7-day profit: +112.54%

5. Opacity(OPCT): Projected 7-day profit: +67.91%

6. Wax(WAX): Projected 7-day profit: +63.51%

7. Terra(LUNA): Projected 7-day profit: +59.55%

8. Revain(R): Projected 7-day profit: +39.88%

9. Avalanche(AVAX): Projected 7-day profit: +38.15%

10. Unilayer(LAYER): Projected 7-day profit: +33.18%

The average projected 7-day profit is +84.09%.

Each of the following assets were allocated exactly 10% of the total portfolio value for the fifth week of this study.

1. Revain (R): Projected 7-day profit: +210.52%

2. Presearch (PRE): Projected 7-day profit:  +98.53%

3. Kadena (KDA): Projected 7-day profit: +85.05%

4. Zel (FLUX): Projected 7-day profit: +80.51%

5. Avalaunch (XAVA): Projected 7-day profit:  +70.33%

6. Seedify.fund (SFUND): Projected 7-day profit:  +69.46%

7. Fantom (FTM): Projected 7-day profit: +58.32%

8. Avalanche (AVAX): Projected 7-day profit:  +54.97%

9. Cashaa (CAS): Projected 7-day profit:  +52.41%

10. Layer (LAYER): Projected 7-day profit: +51.00%

The average projected 7-day profit is +83.11%.

Portfolio Starting Value

The Shrimpy ML Strategy was allocated exactly 1,000 USDT at the start of this study.

Try the Shrimpy ML Forecasts

Disclaimer: Shrimpy’s price forecasts are for entertainment purposes only.

Shrimpy offers machine learning price forecasts for all customers. These forecasts are generated using our own Machine Learning models, and price forecasts are updated every day (00:00 UTC) using the last 90 days of daily close prices. Viewing these forecasts is possible by visiting our trading terminal at shrimpy.io.

Sign up for Shrimpy to try them out by clicking here.

Nomics ML Strategy

The Nomics ML Strategy leverages the 7-day price predictions generated by the Nomics ML engine. These price predictions are then used to determine which assets should be placed into our portfolio for this week. Additional information regarding the methodology can be found in our previous article.

Nomics is the clear winner! With the help of Algorand and Harmony it has pushed the week with a meager 3.85% rise. 

Portfolio Allocations

Each of the following assets were allocated exactly 10% of the total portfolio value for the fourth week of this study.

1. Solana(SOL): Projected 7-day profit: +51.47%

2. Litecoin(LTC): Projected 7-day profit: +40.61%

3. Algorand(Algo): Projected 7-day profit: +35.58%

4. IOST(IOST): Projected 7-day profit: +33.98%

5. Harmony(ONE): Projected 7-day profit: +31.61%

6. Chainlink(LINK): Projected 7-day profit: +29.90%

7. NEM(XEM): Projected 7-day profit: +27.91%

8. Polkadot(DOT): Projected 7-day profit: +25.51%

9. OMG Network(OMG): Projected 7-day profit: +25.48%

10. Kusama(KSM): Projected 7-day profit: +24.17%

The average projected 7-day profit is +32.62%.

Each of the following assets were allocated exactly 10% of the total portfolio value for the fifth week of this study.

1. Quant (QNT): Projected 7-day profit: +69.16%

2. NEAR Protocol (NEAR): Projected 7-day profit: +52.53%

3. Harmony (ONE): Projected 7-day profit: +50.45%

4. Solana (SOL): Projected 7-day profit: +40.52%

5. Fantom (FTM): Projected 7-day profit: +40.11%

6. Terra (LUNA): Projected 7-day profit: +29.63%

7. OMG Network (OMG): Projected 7-day profit: +27.08%

8. Avalanche (AVAX): Projected 7-day profit: +20.11%

9. Cosmos (ATOM): Projected 7-day profit:+15.33%

10. IOST (IOST):Projected 7-day profit: +15.31%

The average projected 7-day profit is +36.02%.

Portfolio Starting Value

The Nomics ML Strategy was allocated exactly 1,000 USDT at the start of this study.

Decentralized Finance Index Strategy

The Coin Market Cap DeFi Index Strategy uses the asset market caps combined with the Decentralized Finance asset tag that are calculated by “CoinMarketCap” to determine which assets should be included in the portfolio. Additional information regarding the methodology can be found in our previous article.

Last week the DeFi index had the weakest losses among our contestants at only -7.85% during a very turbulent week. 

Portfolio Allocations

1. Uniswap (UNI): 17.38% Allocation (adjusted from 20.74%) Allocation 

2. Chainlink (LINK): 15.34% Allocation (adjusted from 18.30%)

3. Terra (LUNA): 18.76% Allocation (adjusted from 15.09%)

4. Avalanche (AVAX): 14.69% Allocation (adjusted from 11.92%)

5. Pancake Swap (CAKE): 5.42% Allocation (adjusted from 6.33%)

6. AAVE (AAVE): 5.45% Allocation (adjusted from 6.23%)

7. The Graph (GRT): 4.98% Allocation (adjusted from 5.77%)

8. Tezos (XTZ): 7.82% Allocation (adjusted from 5.62%)

9. Maker (MKR): 5.11% Allocation (adjusted from 5%)

10. Fantom (FTM): 5.02% Allocation (adjusted from 5%)

Portfolio Starting Value

The DeFi Index Strategy was allocated exactly 1,000 USDT at the start of this study.

Smart Contracts Index Strategy

The Coin Market Cap Smart Contracts Index Strategy uses the asset market caps combined with the Smart Contracts asset tag that are calculated by “CoinMarketCap” to determine which assets should be included in the portfolio. Additional information regarding the methodology can be found in our previous article.

The SC Index had the worst performance this time around, receiving only a meager 1.4% push from Tezos while Avalanche and Algorand decimated profits with their respective -10.54% and -9.15% dumps.

Portfolio Allocations

1. Ethereum (ETH): 25.23% Allocation (adjusted from 24.99%)

2. Cardano (ADA): 25.22% Allocation (adjusted from 25%)

3. Chainlink (LINK): 8.34% Allocation (adjusted from 9.97%)

4. Avalanche (AVAX): 8.04% Allocation (adjusted from 6.49%)

5. Stellar (XLM): 5.19% Allocation (adjusted from 6.29%)

6. VeChain (VET): 4.96% Allocation (adjusted from 6.21%)

7. Ethereum Classic (ETC): 5.09% Allocation (adjusted from 6.05%)

8. Tezos (XTZ): 5% Allocation 

9. Algorand (ALGO): 7.78% Allocation (adjusted from 5%)

10. EOS (EOS): 5.15% Allocation (adjusted from 5%)

Portfolio Starting Value

The Smart Contracts Index Strategy was allocated exactly 1,000 USDT at the start of this study.

Conclusions

For the second week in a row Nomics has yet again dramatically distanced itself from the rest of the group by remaining the only one to provide profits, rather than losses. The state of affairs can be mostly attributed to Algorand’s and Harmony’s unexpected rise in value, of which the latter (ONE) has gone as far as to reach ATHs.

We recommend you check back every week to see how the results are progressing! To keep up to date with the latest articles, you can also join our Discord Group or follow us on Twitter.

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