Machine Learning for Crypto Portfolio Management Case Study: Week 1

This week kicked off the start 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.

 
 

Bitcoin approached and breached $50,000, giving the altcoin market ample room to breathe resulting in a solid week to start our case study. Currently, the Smart Contracts index has a slim lead, with Nomics predictions in a very close second. Both the DeFi index and Shrimpy Predictions had similar performances.

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.

Shrimpy had a solid opening week with their predictions resulting in a positive performance of +15.77% over the first 7 days. Shrimpy didn’t have any picks that performed negatively this week.

Shrimpy had a solid opening week with their predictions resulting in a positive performance of +15.77% over the first 7 days. Shrimpy didn’t have any picks that performed negatively this week.

Portfolio Allocations

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

  1. BNS Token (BNS): Projected 7-day profit: +129.09%

  2. Props Token (PROPS): Projected 7-day profit: +78.56%

  3. Layer (Layer): Projected 7-day profit: +69.07%

  4. Yield Optimization Platform & Protocol (YOP): Projected 7-day profit: +60.26%

  5. Curate (XCUR): Projected 7-day profit: +46.06%

  6. Kadena (KDA): Projected 7-day profit: +33.99%

  7. Quant (QNT): Projected 7-day profit: +32.87%

  8. DigitalBits (XDB): Projected 7-day profit: +30.79%

  9. Terra (LUNA): Projected 7-day profit: +30.76%

  10. WINk (WIN): Projected 7-day profit: +30.23%

The average projected 7-day profit is +54.17%.

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

  1. ARCS (ARX): Projected 7-day profit: +301.98%

  2. LOCGame (LOCG): Projected 7-day profit: +194.67%

  3. VideoCoin (VID): Projected 7-day profit: +108.23%

  4. Terra (LUNA): Projected 7-day profit: +79.37%

  5. WAX (WAX): Projected 7-day profit: +71.77%

  6. BNS Token (BNS): Projected 7-day profit: +67.94%

  7. Energy Web Token (EWT): Projected 7-day profit: +53.28%

  8. Avalanche (AVAX): Projected 7-day profit: +45.95%

  9. Bolt (BOLT): Projected 7-day profit: +39.81%

  10. Render Token (RNDR): Projected 7-day profit: +38.25%

The average projected 7-day profit is +100.12%.

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. 

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 did not disappoint with their initial set of predictions resulting in a positive performance of +18.38% for the week. This was primarily due to solid high market cap picks such as XRP and ADA.

Nomics did not disappoint with their initial set of predictions resulting in a positive performance of +18.38% for the week. This was primarily due to solid high market cap picks such as XRP and ADA.

Portfolio Allocations

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

  1. Axie Infinity (AXS): Projected 7-day profit: +80.62%

  2. XRP (XRP): Projected 7-day profit: +70.17%

  3. Cardano (ADA): Projected 7-day profit: +50.47%

  4. Waves (WAVES): Projected 7-day profit: +46.62%

  5. Terra (LUNA): Projected 7-day profit: +46.43%

  6. Polygon (MATIC): Projected 7-day profit: +42.10%

  7. Dogecoin (DOGE): Projected 7-day profit: +40.00%

  8. Stellar (XLM): Projected 7-day profit: +37.22%

  9. XinFin Network (XDC): Projected 7-day profit: +36.99%

  10. The Graph (GRT): Projected 7-day profit: +36.25%

The average projected 7-day profit is +45.65%.

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

  1. Bitcoin Cash ABC (BCHA): Projected 7-day profit: +71.43%

  2. Kusama (KSM): Projected 7-day profit: +61.06%

  3. Fantom (FTM): Projected 7-day profit: +60.15%

  4. NEAR Protocol (NEAR): Projected 7-day profit: +58.54%

  5. Terra (LUNA): Projected 7-day profit: +53.66%

  6. Cosmos (ATOM): Projected 7-day profit: +36.93%

  7. Solana (SOL): Projected 7-day profit: +35.88%

  8. XinFin Network (XDC): Projected 7-day profit: +29.18%

  9. Cardano (ADA): Projected 7-day profit: +25.27%

  10. Avalanche (AVAX): Projected 7-day profit: +24.43%

The average projected 7-day profit is +45.65%.

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.

Decentralized Finance is a major sector within Cryptocurrency markets, and that shows with a positive performance of +15.11% for the week.

Decentralized Finance is a major sector within Cryptocurrency markets, and that shows with a positive performance of +15.11% for the week.

Portfolio Allocations

  1. Uniswap (UNI): 22.25% Allocation

  2. Terra (LUNA): 16.84% Allocation

  3. Chainlink (LINK): 16.11% Allocation

  4. Avalanche (AVAX): 10.33% Allocation

  5. Pancake Swap (CAKE): 6.81% Allocation

  6. AAVE (AAVE): 6.66% Allocation

  7. The Graph (GRT): 6% Allocation

  8. Sushiswap (SUSHI): 5% Allocation

  9. Compound (COMP): 5% Allocation

  10. Maker (MKR): 5% Allocation

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.

Smart Contracts are a major use case within cryptocurrency, and that is undoubtedly why this portfolio has taken the lead coming out of the first week. With established assets such as ETH and ADA pushing for new all-time highs, it’s no surprise that this portfolio has participated heavily in the frenzy resulting in a positive performance of +19.67% for the week.

Smart Contracts are a major use case within cryptocurrency, and that is undoubtedly why this portfolio has taken the lead coming out of the first week. With established assets such as ETH and ADA pushing for new all-time highs, it’s no surprise that this portfolio has participated heavily in the frenzy resulting in a positive performance of +19.67% for the week.

Portfolio Allocations

  1. Ethereum (ETH): 25.01% Allocation

  2. Cardano (ADA): 25% Allocation

  3. Chainlink (LINK): 9.53% Allocation

  4. Stellar (XLM): 6.62% Allocation

  5. Ethereum Classic (ETC): 6.55% Allocation

  6. VeChain (VET): 6.27% Allocation

  7. Avalanche (AVAX): 6.02% Allocation

  8. Algorand (ALGO): 5% Allocation

  9. NEO (NEO): 5% Allocation

  10. EOS (EOS): 5% Allocation

Portfolio Starting Value

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

Conclusions

After 1 week, we’re able to see that a rising tide does indeed lift all boats. Bitcoin showing strength and pushing past the $50,000 mark has given the rest of the market room to grow in its wake, and it’s clear that the Smart Contracts sector has used every bit of room afforded by BTC’s movement in their price adjustments.

There are very few additional conclusions to draw at this stage in the study, so 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.

Disclaimer

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InvestorMichael McCartydata, machinelearning, notlatestComment