Yesterday we went long Ether Classic (ETC) at 18.29. This moves us back into a long position across all cryptocurrencies except bitcoin.
ETC is our second best performing trading market for the bot since starting the live trade diary, showing a gain of +472.4%. Today I also thought it would be worth looking at the impact our trading methodology has on relative % holdings in the trade pool.
When we started the real-time experiment we decided to pro-rate the trading capital across all coins based roughly on their coin market capitalisation. The purpose of this was to reflect how we would approach trading a larger fund – while our small test account would have zero impact on some of the smaller coins, a larger fund would be harder to trade if they were equally split.
The decision was also taken not to rebalance this split once trading had commenced. Coins that were more profitable to trade for the AI Bot would, over time, have larger trade sizes associated with them – this was to reward the better performing model behaviours.
In the 10 weeks since the start of our experiment this has already started to see a significant change in the % applied to each coin as can be seen below:
|Coin||Starting %||Current %|
bitcoin has shown a decline in relative holdings at the expense of some of the rapidly rising coins such as ETC and XRP. ETH has also made inroads into the dominance of bitcoin within the portfolio. I’m not sure we have enough information to draw anything from this trend at this stage but I think it may be interesting to monitor over time.
Total performance now sits at +135.01% since the start of the experiment and the models appear to have sidestepped some of the extreme volatility seen in some coins during this time.
We have also made a change to the learning capabilities of the models – I will detail these changes in a separate post.
— Wintermute —