To bring our mission to life, while adhering to our guiding principles we needed to develop a plan on how to execute. As a team we brainstormed focusing on our passions, and arrived at a series of goals we believed possible, that would result in a positive contribution to the crypto community. Those team goals include;
1) Creation of a one of a kind data set (to be published on github), which consolidated features ground in theoretical principles which could be used to excite, and educate investors, while concurrently utilized to populate our ML model,
2) Creation of at least 1 unique ML Model, which could be used to profitability implement a low risk investment trading strategy.
3) Create a communal dialogue; sharing the work, findings, insights, and research and development work undertaken with the sole purpose to educate, empower and promote continued positive and intellectual dialogue in the crypto community.
While creation of a data set was established as our first deliverable, we felt that understanding the model/ trading strategy would inform the requirements and structure of the dataset, as such started with conceptualization of a strategy. While the goal was to develop and implement a profitable strategy, it became apparent that expectations could be a challenge, specifically the gains of holding crypto over the past 20 years have been exponential for pioneers who bought and held, with stories of overnight millions/billions commonplace. However, during the past 5 years volatility in pricing has introduced considerable risk, and while many have implemented successful trading strategies, others have lost considerable fortunes in search of riches. As such it is critically important to highlight the inherent risk with crypto as both a short term and long term asset. Given this risk profile, the group sought a primary strategy which reduced risk, which could be attractive to help entice, educate and inform traders, such that before they exposed themselves to much riskier strategies, they possessed experience, knowledge and understanding.
The team explored opportunities which met this criteria (Risk Free, or Near Risk Free) and identified two primary trading strategies which provided investors the opportunity to eliminate holding risk (should they decide that holding a particular crypto currency is outside of their risk profile). The first strategy leverages the concept of high frequency trading, while both exciting and profitable, this strategy is distinctly outside the scope of interest, as it fails two or our guiding principles; Complexity; it requires expensive, high performance hardware, and Competitive; it is solely based on being faster and more precise that fellow traders ( in certain strategies you explicitly exploit less effective strategies). The second strategy, which is our preferred strategy, utilizes the development and testing of strategies which utilize ML Models to identify instances when circumstance dictated in the near immediate future the expectation of arbitrage opportunities, to enable traders to both understand what was happening, and execute a profitable strategy.