Machine Learning for Crypto Portfolio Management Case Study: Week 8

This was the eighth 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.

BTC has stolen the show. Approval of the first BTC Futures ETF within the US has reversed the downward trend, and speculation from the SEC on 4 additional BTC ETF’s has provided momentum while the rest of the market lags behind. The Shrimpy Machine Learning portfolio has overtaken both indices in total performance.

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.

The picks this week from Shrimpy, while not positive, were resistant to the downward momentum felt across most of the market and due to this — Shrimpy has overtaken both indices in total performance.

Portfolio Allocations

Each of the following assets was 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%.

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

  1. CashBet Coin (CBC): Projected 7-day profit: +38.94%
  2. Huobi Token (HT): Projected 7-day profit: +37.63%
  3. DigitalBits (XDB): Projected 7-day profit: +36.58%
  4. Formation Fi (FORM): Projected 7-day profit: +31.65%
  5. Velo (VELO): Projected 7-day profit: +30.36%
  6. Lympo (LYM): Projected 7-day profit: +25.36%
  7. RedFOX Labs (RFOX): Projected 7-day profit: +25.10%
  8. Phantasma (SOUL): Projected 7-day profit: +24.08%
  9. Opacity (OPCT): Projected 7-day profit: +21.52%
  10. Nimiq (NIM): Projected 7-day profit: +21.42%

The average projected 7-day profit is +29.26%.

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 picks this week, much like Shrimpy’s, were resistant to downward pressure. Nomics is still the top performing portfolio at this time.

Portfolio Allocations

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%.

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

  1. Shiba Inu (SHIB): Projected 7-day profit: +48.52%
  2. Fantom (FTM): Projected 7-day profit: +43.58%
  3. Harmony (ONE): Projected 7-day profit: +37.31%
  4. Bitcoin SV (BSV): Projected 7-day profit: +19.46%
  5. Bitcoin (BTC): Projected 7-day profit: +13.81%
  6. Decred (DCR): Projected 7-day profit: +13.68%
  7. Bitcoin Cash (BCH): Projected 7-day profit: +9.75%
  8. XRP (XRP): Projected 7-day profit: +8.44%
  9. NEM (XEM): Projected 7-day profit: +8.03%
  10. Stellar (XLM): Projected 7-day profit: +6.92%

The average projected 7-day profit is 20.95%.

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 sector was hit especially hard during this particular round of profit taking, which is unsurprising given how well this sector has done recently. Tezos and Fantom both did well enough to find spots within the top 10 for this portfolio replacing Sushiswap and Compound, however this portfolio is still last in overall performance.

Portfolio Allocations

  1. Uniswap (UNI): 18.77% Allocation (adjusted from 22.15%)
  2. Terra (LUNA): 17.96% Allocation (adjusted from 18.11%)
  3. Avalanche (AVAX): 14.66% Allocation (adjusted from 9.92%)
  4. Chainlink (LINK): 13.98% Allocation (adjusted from 15.18%)
  5. Tezos (XTZ): 7.23% Allocation (adjusted from 0%)
  6. Fantom (FTM): 7.12% Allocation (adjusted from 0%)
  7. Pancake Swap (CAKE): 5.28% Allocation (adjusted from 6.75%)
  8. AAVE (AAVE): 5% Allocation (adjusted from 6.34%)
  9. The Graph (GRT): 5% Allocation (adjusted from 6.11%)
  10. Maker (MKR): 5% Allocation

Removed

Sushiswap (SUSHI)
Compound (COMP)

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 Smart Contracts index was held up by Tezos and Fantom, however, it still had the third-worst performance this week and is third overall.

Portfolio Allocations

  1. Cardano (ADA): 25% Allocation
  2. Ethereum (ETH): 24.99% Allocation (adjusted from 25.01%)
  3. Avalanche (AVAX): 8.56% Allocation (adjusted from 6.11%)
  4. Chainlink (LINK): 8.17% Allocation (adjusted from 9.36%)
  5. Algorand (ALGO): 7.46% Allocation (adjusted from 5%)
  6. Stellar (XLM): 5.82% Allocation (adjusted from 6.69%)
  7. Fantom (FTM): 5% Allocation (adjusted from 0%)
  8. Tezos (XTZ): 5% Allocation (adjusted from 0%)
  9. Ethereum Classic (ETC): 5% Allocation (adjusted from 6.52%)
  10. VeChain (VET): 5% Allocation (adjusted from 6.31%)

Removed

NEO (NEO)
EOS (EOS)

Portfolio Starting Value

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

Conclusions

While certain assets like SHIB and KISHU are taking full advantage of the extra room afforded by BTC’s current movement, the rest of the market seems to be struggling to keep up as traders exit risky positions for the safety of BTC. With many analysts predicting an imminent BTC movement to levels previously widely accepted as unthinkable, this week brings into question just how much altcoins will benefit from such a run.

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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All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold Shrimpy, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.

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.