Since I knew the cryptocurrency trading world, I was wondering if there is any software that can predict any coins based on mathematical algorithms. I start searching and searching and here is the out come so far:
PAMR algorithm:
PAMR is portfolio selection strategy named “Passive Aggressive Mean Reversion”. I found a lot of people talking about this great strategy and as a result, I tried to find out more info about it.
According to the article called “ PAMR: Passive aggressive mean reversion strategy for portfolio selection” that is been released on Machine Learning – May 2012, Vol 87, Issue 2, pp 221-258 and written by Prof. Bin Li, Peilin Zhao, and Steven C. H. Hoi “ https://link.springer.com/article/10.1007/s10994-012-5281-z” :
This article proposes a novel online portfolio selection strategy named “Passive Aggressive Mean Reversion” (PAMR). Unlike traditional trend following approaches, the proposed approach relies upon the mean reversion relation of financial markets. Equipped with online passive aggressive learning technique from machine learning, the proposed portfolio selection strategy can effectively exploit the mean reversion property of markets. By analyzing PAMR’s update scheme, we find that it nicely trades off between portfolio return and volatility risk and reflects the mean reversion trading principle. We also present several variants of PAMR algorithm, including a mixture algorithm which mixes PAMR and other strategies. We conduct extensive numerical experiments to evaluate the empirical performance of the proposed algorithms on various real datasets. The encouraging results show that in most cases the proposed PAMR strategy outperforms all benchmarks and almost all state-of-the-art portfolio selection strategies under various performance metrics. In addition to its superior performance, the proposed PAMR runs extremely fast and thus is very suitable for real-life online trading applications. The experimental testbed including source codes and data sets is available at http://www.cais.ntu.edu.sg/~chhoi/PAMR/
As a result, I did read the whole article but I couldn’t find any clear cut info about how to apply the algorithm in the real market. Also, tried to download the source codes from the provided link “ http://www.cais.ntu.edu.sg/~chhoi/PAMR/ “ however, the link wasn’t working.
I found an email address for Dr. Hoi so I sent him an email asking for help to apply the PAMR concept to the Cryptocurrency market and also asking for the PAMR codes. He did reply in a couple of hours which did surprise me.
He refered me to his website and I will be able to find all the needed codes under Software which is : http://olps.stevenhoi.org/
He also told me that the new program that he worked on which includes many algorithms in it including PAMR, PAMR 1, and PAMR 2 called “OLPS: A Toolbox for Online Portfolio Selection” and it can be downloaded from this link: https://github.com/OLPS/OLPS
I found out that OLPS is an open-source toolbox for On-Line Portfolio Selection, which includes a collection of classical and state-of-the-art on-line portofolio selection strategies implemented in Matlab/Octave.
So, I had to download Matlab to be able to open OLPS. After I opened OLPS in Matlab, I discovered that it wasn’t programed properly to be used in the cryptocurrency markets however, I have been able to have all the codes for all algorithms including PAMR.
I tried to find a programmer in FIVERR.com or Freelancer.com to reprogram OLPS to be able to use bittrex and Poloniex market to predict and choose the proper coin to invist in however, I couldn’t find a programmer who understand or have trading experience to help me reprogram OLPS.
Now I am reaching out to you my Steemit family. I gave you all the sources that I found.. Do you think is it possible to create a software using the Algorithms that we have from OLPS that gives us an option to choose which market we want to trade is “Bittrex, Poloniex,…” then give us the option to apply any algorithm we prefer “PAMR,….” Then once we hit start, the program with go ahead and do auto trades accordingly like a trading bot.
What do you think? Please share this article so we can reach as much people as possible to be able to reach to our dream software.
As always, Your support is needed and highly appreciated
Bitcoin Address for tips
1C7cUxM47y21hNBRW9okKRkDUPkNPQmTsA
Picturs sources:
https://www.pexels.com/photo/mathematical-formula-74228/
https://www.pexels.com/photo/black-click-pen-on-white-paper-167682/
https://www.pexels.com/photo/black-and-white-blur-book-business-240163/
Sources:
https://link.springer.com/article/10.1007/s10994-012-5281-z
http://olps.stevenhoi.org/
https://github.com/OLPS/OLPS