Read the original:Blockchain Quantitative Investing Series Courses ((2) - Understanding the digital currency
Bitcoin is the first example of blockchain technology, and with its price spiking in 2017, there is a continuous warming of blockchain technology. Various blockchain flagship coins, such as shadow coins, air coins, and exchange coins, have emerged in a short time.
Strictly speaking, in addition to Bitcoin, other subsequent implementations of blockchain technology are called "cryptocurrencies". In foreign countries, they are known as "competitive cryptocurrencies". According to statistics, about 99% of the cryptocurrencies on the market are modified or even directly applied to the Bitcoin source code, and then ordered to rename a new name, a new currency is born.
However, not all of the Ethereum coins are worthless, for example, Ethereum has made many improvements based on Bitcoin's shortcomings, and using smart contracts to replace Bitcoin's hash function is a huge innovation.
The biggest difference between the two is that the project's starting point, the concept is very bullish, up can be the blue sky next month, down can be the green sea, but if you think about it, there is no chance of landing at all. Their only purpose is not the project, but to slice the money.
The biggest feature is that there is no connection to the blockchain, no code can be found on Github, even the most basic wallet is not there, is a concept of a "push", with high returns as an interface, pulling people's heads to develop offline.
The speed and quantity of the coins are manipulated by the company or platform, as long as the platform developer wants to, some can even be multiplied indefinitely.
Like tulips back then, it is difficult to measure the true value of these digital currencies today, and even if they are the leading bitcoin in the digital currency, there is no way to know how much they are really worth, so the risk is relative.
However, it is not impossible to filter out these junk coins, and the best approach is to make a comprehensive assessment of the market value, transaction volume, price, etc. of different digital currencies based on market activity.
Market activity: BTC's 24-hour trading volume, which peaked in the fourth quarter of the 17th year at a peak of nearly $220 million per day, is currently around $20 million.
In addition to the risks of digital currencies themselves, there is also the risk of exchanges. Almost all exchanges can experience problems, be it theft, suspension of services, reversal of transactions, vigilantism, runways, etc.In addition, the API of the exchange also has a variety of data errors, delays, lack of conventional norms that lead to access costs that are too high, which is not comparable to traditional financial secondary market exchanges.
This article looks at the inventors' implementation of a quantitative trading platform through a one-size-fits-all strategy, to familiarize themselves with the platform and quickly get into it and create their own quantitative strategy. Difficulty: entry level
Strategic logic
You will find that we can easily combine the two; the whole strategy only takes three steps: 1. Pre-processing of the transaction. 2. Obtain and compute data. 3. Follow the order.
Inventor quantified (www.fmz.cn)
Inventor quantified (www.fmz.cn)
Inventor quantified (www.fmz.cn)
So, we built a strategy in just 50 lines of code, and the final full code is:Inventor quantified (www.fmz.cn)
So what do we do next? Let's do a historical review of our strategy and see how it performs historically.
Inventor quantified (www.fmz.cn)
On the simulation review page, select from January 4, 2015 to October 4, 2016 to review with $100,000 and click to start the review. If the code is OK, in a few seconds we will get the historical performance of the strategy:
Inventor quantified (www.fmz.cn)
We can see the necessary risk-reward indicators, performance details, and more in the feedback details to help you understand the performance of the strategy. Here, a complete process from building the strategy idea to writing the strategy code to checking the feedback results is over. The first half of 2018 was definitely a disaster for the digital currency, and in just six months, the price of Litecoin has fallen by almost 70%, and this simple simple strategy not only helps you avoid the sharp price decline that led to the shrinkage of the asset, but also allows you to try something small, etc.
Read more:Blockchain Quantitative Investing series of courses ((1) - briefing Blockchain Quantitative Investing Series Course ((3)) - cross-term leverage Blockchain Quantitative Investing series of courses ((4) - Dynamic balancing strategies