Hi, you may have seen many ICO for trading platforms, which promise to use data analysis and artificial intelligence, we aren't another one. We thought that we don’t need to rise X millions to do the same, why ? Because we are passionated by the finance environment and we see that like a challenge.
What is Krypto ? In a nutshell Krypto will be a trading platform, allowing everybody to use the most advanced strategies to trade cryptocurrencies in a automated way.
The environment will be composed of a software and a website.
The first one will display strategies, you will be able to backtest these strategies, find one which suit you the most modify some parameter if wanted, connect the software to your exchange and launch the automated trading bot.
We will explain below some of the strategies.
The website will allow everybody to propose strategies, the community will then vote and the winner will have his strategy implemented in the software.
Who are we ? As we won't ask your money we want to stay anonymous as most of the team members are currently working in top banks. Specialised in IT, Trading or quantitative analysis.
No ICO you said ? For the moment it's a hobby for us and it cost us nothing to work on, we can't promise that the product itself will be at a no cost. Indeed if everything goes right we will have to pay for hardware and hence sell the product but we will aim to make it accessible to most of people. Maybe a freemium version where all the most advanced feature will be at a cost the other reaming free.
What stage is the project ? We have split the project in three key parts:
- An automated trading framework connected to several exchanges able to get real time data and use these data to perform backtesting of our strategies.
- Develop the strategies using the basics portfolio theory, trading theory as well as artificial intelligence and in house strategies.
- Have a proper GUI and website
The first part is almost achieved at least for the biggest exchanges, the second part require all our attention and we are currently working on it, but we will expose below some example of the strategies. We haven't started to work on the last part.
What strategies ?We aim to offer both portfolio strategies as would offer an asset manager and trading strategies.
a) Portfolio strategies:
Imagine a tool where you can easily apply to crypto the most famous strategies that all asset manager use: Markowitz, minimum variance, maximum sharpe, maximum Esperance....
But we will go further and add more advanced portfolio strategies for example using artificial intelligence to determine wether or not rebalance your portfolio or offer tailored parameter for modern portfolio strategies (will define your risk aversion and design an optimised strategy just for you) or for example portfolio optimisation with stochastic control.
b) Trading strategies:
It is very hard to define strategies which are profitable, we will hence use the most advanced technology, especially data analysis (for example: autocorrelation detection at different scales), (double) momentum strategies and artificial intelligence (see below) as well as in house strategies which we will backtest till we find one profitable.
It's a bit technical don't read if not interested: A very quick example of our work on strategies:
One member of the team though: "Hey guys have you seen that most of the crypto pumps come from twitter or reddit, maybe if we can analyse live tweets we could build a profitable strategy"
So we started to work, nothing really complex here, just to explain our way to work. We started to feed our artificial intelligence algorithms with hundred thousand of tweet which has been rated from very negative to very positive by human in order to "teach our algorithm". Then, we extracted thousand of live tweet about a crypto and we used natural language processing to analysis each tweet. In the end, we can determine a trend and analyse the market sentiment about a crypto and potentially build a strategy.
Check this example for XRB:
https://img15.hostingpics.net/pics/465428KryptoAnalysis.pngYou can see the "average" sentiment is the blue line, between the red and green line you conclude the sentiment is neutral above the green the sentiment is positive and below the red negative. It is also possible, for example to analyse the clustering of positive and negative sentiment
Checking the results our team member said: "Ok now let's try to do further analysis between that stuff and the price of the crypto to check if we can find a pattern"
That's our way to work.
What can you do for us ? We won't ask your money guys, at least not at this stage and we hope never, but we would love you to get your thoughts, if you would be interested, and try to start building a community to make Krypto the first community trading platform for cryptocurrencies.
