Machine Learning for Crypto Portfolio Management Case Study: Week 11

This was the eleventh 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.

Nomics and Shrimpy show resistance to the downward pressure coming from BTC, while the Indices struggle to stay above water.

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.

SENSO was the only solid pick this week, and it did well enough to hold up the rest of the portfolio and keep it in the green. The other picks, while not positive, also did not lose much which is commendable while BTC finds support near $61,000.

Portfolio Allocations

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

  1. Aurora (AOA): Projected 7-day profit: +153.63%
  2. Lossless (LSS): Projected 7-day profit: +129.39%
  3. Dapp Token (DAPPT): Projected 7-day profit: +112.70%
  4. Cryptoindex.com 100 (CIX100): Projected 7-day profit: +90.88%
  5. UBIX.Network (UBX): Projected 7-day profit: +71.10%
  6. Kadena (KDA): Projected 7-day profit: +70.99%
  7. Senso (SENSO): Projected 7-day profit: +50.66%
  8. Ampleforth (AMPL): Projected 7-day profit: +44.22%
  9. Lattice Token (LTX): Projected 7-day profit: +27.30%

The average projected 7-day profit is +96.24%.

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

  1. The Sandbox (SAND): Projected 7-day profit: +287.54%
  2. Decentraland (MANA): Projected 7-day profit: +114.08%
  3. Kryll (KRL): Projected 7-day profit: +103.05%
  4. Loopring (LRC): Projected 7-day profit: +78.93%
  5. Dogelon Mars (ELON): Projected 7-day profit: +70.17%
  6. Senso (SENSO): Projected 7-day profit: +62.21%
  7. Ampleforth (AMPL): Projected 7-day profit: +52.98%
  8. Unifty (NIF): Projected 7-day profit: +46.34%
  9. Trias (TRIAS): Projected 7-day profit: +45.55%

The average projected 7-day profit is +121.50%.

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.

With yet another week as the top gainer, Nomics continues to widen the gap. Similar to the Shrimpy portfolio, Nomics only had one solid pick this week in SHIB.

Portfolio Allocations

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

  1. Huobi Token (HT): Projected 7-day profit: +39.41%
  2. Harmony (ONE): Projected 7-day profit: +28.40%
  3. Shiba Inu (SHIB): Projected 7-day profit: +28.39%
  4. NEAR Protocol (NEAR): Projected 7-day profit: +26.44%
  5. ZCash (ZEC): Projected 7-day profit: +26.08%
  6. Solana (SOL): Projected 7-day profit: +25.64%
  7. eGLD (EGLD): Projected 7-day profit: +23.84%
  8. Fantom (FTM): Projected 7-day profit: +23.30%
  9. KuCoin Shares (KCS): Projected 7-day profit: +20.84%

The average projected 7-day profit is +29.45%.

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

  1. Shiba Inu (SHIB): Projected 7-day profit: +82.95%
  2. Decentraland (MANA): Projected 7-day profit: +57.17%
  3. Enjin (ENJ): Projected 7-day profit: +39.66%
  4. Bitcoin Cash ABC (BCHA): Projected 7-day profit: +30.54%
  5. Polygon (MATIC): Projected 7-day profit: +29.66%
  6. Qtum (QTUM): Projected 7-day profit: +24.47%
  7. Chiliz (CHZ): Projected 7-day profit: +24.24%
  8. THORChain (RUNE): Projected 7-day profit: +22.53%
  9. BitTorrent (BTT): Projected 7-day profit: +17.32%

The average projected 7-day profit is +46.85%.

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.

The DeFi Index saw very little movement regarding asset allocations compared to previous weeks, and after last week it is expected to see some pullback within this sector.

Portfolio Allocations

  1. Terra (LUNA): 18.56% Allocation (adjusted from 18.14%)
  2. Uniswap (UNI): 17.08% Allocation (adjusted from 16.51%)
  3. Avalanche (AVAX): 15.53% Allocation (adjusted from 15.99%)
  4. Chainlink (LINK): 15.51% Allocation (adjusted from 15.01%)
  5. Fantom (FTM): 7.43% Allocation (adjusted from 8.32%)
  6. Tezos (XTZ): 5.77% Allocation (adjusted from 6.03%)
  7. THORChain (RUNE): 5% Allocation
  8. AAVE (AAVE): 5% Allocation
  9. Pancake Swap (CAKE): 5% Allocation
  10. The Graph (GRT): 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.

Similar to the other Index, the Smart Contracts index saw very little change to asset allocations. A dip in performance due to profit taking is expected after a great performance last week.

Portfolio Allocations

  1. Ethereum (ETH): 25% Allocation (adjusted from 24.99%)
  2. Cardano (ADA): 25% Allocation
  3. Avalanche (AVAX): 8.73% Allocation (adjusted from 8.98%)
  4. Chainlink (LINK): 8.72% Allocation (adjusted from 8.43%)
  5. Algorand (ALGO): 6.94% Allocation (adjusted from 7.07%)
  6. Stellar (XLM): 5.36% Allocation (adjusted from 5.31%)
  7. VeChain (VET): 5.25% Allocation (adjusted from 5.22%)
  8. Ethereum Classic (ETC): 5% Allocation
  9. Fantom (FTM): 5% Allocation
  10. Tezos (XTZ): 5% Allocation

Portfolio Starting Value

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

Conclusions

This week demonstrates that incorporating the ability to shift which assets are included in your strategy can have a great effect on your performance. What goes up will generally come down (at least somewhat) and the indices certainly felt the sting this week from a mostly static asset selection based on market cap. That said, only SENSO and SHIB kept the machine learning portfolios above water.

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.

Note: Week 11 marks the last and final part of our machine learning case study series.

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About us

Shrimpy is an automated portfolio management platform that helps cryptocurrency investors manage their capital through the use of a simple and intuitive app that saves time and money with the power of automation.

To find out more about our platform and discover how it can jumpstart your crypto journey, feel free to visit our main website.

We also provide free blockchain education to the masses at the Shrimpy Academy and Youtube.