Machine Learning for Crypto Portfolio Management Case Study: Week 7

This was the seventh 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.

Gary Gensler shows support for a Bitcoin Futures ETF which gave bitcoin some positive momentum. As usual, this opened up room for the altcoin market to surge — and surge it did. Nomics had a solid week which pushed it to new all time highs, while Shrimpy made up for a rough couple of weeks and is now outperforming the Smart Contracts index.

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 was the top performer this week by far, and has now overtaken the Smart Contracts index in total performance. Solid picks such as REN, ALGO and ALEPH helped the Shrimpy portfolio make up for a couple of shaky weeks recently and it has caught up to the Indices. That said, there is still a lot of ground to make up in order to catch up to the Nomics portfolios performance.

Portfolio Allocations

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

  1. Ren (REN): Projected 7-day profit: +95.84%
  2. Zel (FLUX): Projected 7-day profit: +95.54%
  3. Algorand (ALGO): Projected 7-day profit: +83.71%
  4. Aleph.im (ALEPH): Projected 7-day profit: +66.50%
  5. Kadena (KDA): Projected 7-day profit: +60.01%
  6. The Forbidden Forest (FORESTPLUS): Projected 7-day profit: +45.32%
  7. The Crypto Prophecies (TCP): Projected 7-day profit: +42.03%
  8. Combo (COMB): Projected 7-day profit: +41.40%
  9. Unizen (ZCX): Projected 7-day profit: +40.18%
  10. Cosmos (ATOM): Projected 7-day profit: +38.80%

The average projected 7-day profit is +60.93%.

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

  1. DigitalBits (XDB): Projected 7-day profit: +75.55%
  2. Kadena (KDA): Projected 7-day profit: +53.61%
  3. e-Money (NGM): Projected 7-day profit: +39.05%
  4. Telos (TLOS): Projected 7-day profit: +36.09%
  5. Ren (REN): Projected 7-day profit: +35.02%
  6. Zel (FLUX): Projected 7-day profit: +34.13%
  7. Formation Fi (FORM): Projected 7-day profit: +34.10%
  8. Equalizer (EQZ): Projected 7-day profit: +31.90%
  9. Elastos (ELA): Projected 7-day profit: +31.61%
  10. 2crazyNFT (2CRZ): Projected 7-day profit: +29.16%

The average projected 7-day profit is +40.02%.

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.

Yet another solid week for Nomics, and while it clearly missed the mark on XDC, the combination of XTZ+AXS+TERRA more than made up for it. The Nomics portfolio is now pushing into new all time highs and we’re excited to see how long Nomics can keep this up!

Portfolio Allocations

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

  1. XinFin Network (XDC): Projected 7-day profit: +31.05%
  2. Tezos (XTZ): Projected 7-day profit: +18.52%
  3. Axie Infinity (AXS): Projected 7-day profit: +15.54%
  4. Harmony (ONE): Projected 7-day profit: +14.68%
  5. Sushiswap (SUSHI): Projected 7-day profit: +13.14%
  6. Celo (CELO): Projected 7-day profit: +10.66%
  7. Luna (LUNA): Projected 7-day profit: +8.72%
  8. Uniswap Protocol Token (UNI): Projected 7-day profit: +7.92%
  9. Cosmos (ATOM): Projected 7-day profit: +4.95%
  10. USD Coin (USDC): Projected 7-day profit: N/A

The average projected 7-day profit is +12.51%.

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

  1. Tezos (XTZ): Projected 7-day profit: +31.44%
  2. Filecoin (FIL): Projected 7-day profit: +27.35%
  3. Fantom (FTM): Projected 7-day profit: +27.03%
  4. Solana (SOL): Projected 7-day profit: +25.96%
  5. Enjin (ENJ): Projected 7-day profit: +24.06%
  6. Theta Token (THETA): Projected 7-day profit: +23.32%
  7. Terra (LUNA): Projected 7-day profit: +22.54%
  8. Flow (Dapper Labs) (FLOW): Projected 7-day profit: +22.00%
  9. Ziliqa (ZIL): Projected 7-day profit: +21.82%
  10. Decred (DCR): Projected 7-day profit: +21.16%

The average projected 7-day profit is +24.66%.

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 also had a solid week, and Terra moved up to the top allocation. The DeFi Index is 2nd only to Nomics for overall performance at this point in the study.

Portfolio Allocations

  1. Terra (LUNA): 20.3% Allocation (adjusted from 18.11%)
  2. Uniswap (UNI): 17.22% Allocation (adjusted from 22.15%)
  3. Avalanche (AVAX): 15.85% Allocation (adjusted from 9.92%)
  4. Chainlink (LINK): 13.54% Allocation (adjusted from 15.18%)
  5. Tezos (XTZ): 8.09% Allocation (adjusted from 0%)
  6. Pancake Swap (CAKE): 5% Allocation (adjusted from 6.75%)
  7. AAVE (AAVE): 5% Allocation
  8. The Graph (GRT): 5% Allocation
  9. Compound (COMP): 5% Allocation
  10. Maker (MKR): 5% Allocation

Removed

Sushiswap (SUSHI)

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.

Even though the Smart Contracts Index had a respectable performance this week, it was the worst performer over the last 7 days. Additionally, the Smart Contracts Index has slipped into last place for overall performance.

Portfolio Allocations

  1. Ethereum (ETH): 25.01% Allocation
  2. Cardano (ADA): 25% Allocation
  3. Avalanche (AVAX): 9.24% Allocation (adjusted from 6.11%)
  4. Algorand (ALGO): 7.88% Allocation (adjusted from 5%)
  5. Chainlink (LINK): 7.87% Allocation (adjusted from 9.36%)
  6. Stellar (XLM): 5% Allocation (adjusted from 6.69%)
  7. Ethereum Classic (ETC): 5% Allocation (adjusted from 6.52%)
  8. VeChain (VET): 5% Allocation (adjusted from 6.31%)
  9. Tezos (XTZ) 5% Allocation (adjusted from 0%)
  10. EOS (EOS): 5% Allocation

Removed

NEO (NEO)

Portfolio Starting Value

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

Conclusions

A rising tide lifts all boats, and it’s clear that positive news from the SEC’s Gary Gensler regarding a Bitcoin Futures ETF is indeed a rising tide. Could this be the spark that ignites the “extended bullrun” that is being predicted by some cryptocurrency market analsysts and if so — has Nomics gained an insurmountable lead?

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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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.

Shrimpy is a crypto exchange trading bot for portfolio management, indexing the market, rebalancing, and strategy backtesting. Join now at shrimpy.io.