Anticipating Cryptocurrency Prices Using Machine Learning

Machine learning and AI-assisted trading have attracted growing interest for the past few years. Here, we use this approach to test the hypothesis that the inefficiency of the cryptocurrency market can be exploited to generate abnormal profits. We analyse daily data for 1,681 cryptocurrencies for th...

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Bibliographic Details
Published inComplexity (New York, N.Y.) Vol. 2018; no. 2018; pp. 1 - 16
Main Authors Baronchelli, Andrea, Aiello, Luca Maria, ElBahrawy, Abeer, Alessandretti, Laura
Format Journal Article
LanguageEnglish
Published Cairo, Egypt Hindawi Publishing Corporation 01.01.2018
Hindawi
John Wiley & Sons, Inc
Wiley
Subjects
Algorithms
Artificial intelligence
Blockchain
Crypto-currencies
Currency
Data mining
Digital currencies
Forecasts and trends
Institutional investments
Internet stocks
Machine learning
Markets
Neural networks
Prices
Prices and rates
State of the art
Stock exchanges
Stock markets
Surveys
Web sites
United Kingdom
United States > US
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Summary:Machine learning and AI-assisted trading have attracted growing interest for the past few years. Here, we use this approach to test the hypothesis that the inefficiency of the cryptocurrency market can be exploited to generate abnormal profits. We analyse daily data for 1,681 cryptocurrencies for the period between Nov. 2015 and Apr. 2018. We show that simple trading strategies assisted by state-of-the-art machine learning algorithms outperform standard benchmarks. Our results show that nontrivial, but ultimately simple, algorithmic mechanisms can help anticipate the short-term evolution of the cryptocurrency market.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
ISSN:1076-2787
1099-0526
DOI:10.1155/2018/8983590