Cryptocurrency Quantitative Cryptocurrency

[Mikee]

So, Crypto to me is as interesting as any other bloated stock considering ive been following markets religiously for past year now (sorry but I think crypto is a bubble). But nevertheless, there is opportunity to be had and the opportunity Im looking towards specifically is involved in quantitative crypto.

Specifically, I'm looking to start programming (undecided which language, will be either node, c#, or c++), a set of quantitative programs which will make money for me.

For those unfamiliar with this, there are many quant equity firms (stock firms) on the street, and they're full of engineers, programmers, and ph.d level mathematicians. To say the least, these firms pull in billions while a lot of other firms on the street have trouble beating the index. Jane Street Capital is one specifically that is an insane firm which pulls in a lot.

But these firms do specifically quant work in equity and debt markets, not crypto markets.

Specifically, If I'm going to get into it I'm most likely going to be aiming at arbitrage opportunities (pure arbitrage is a process by which you buy and sell two crypto's at the same time, in order to take advantage of parity differences, and u make money on the inefficiency of the market at that split second time.) Triangular arbitrage, and covered interest arbitrage (which will possible because of a potential forwards market in crypto).

So I was wondering, has anyone dabbled or thought of going into crypto quantitatively.
Share ur thoughts, experiences, or criticisms (trust me, there are a lot) of this idea.

 

[Adil]

Crypto isn't a standard asset - so building an algorithmic trading platform using existing presumptions would lead to blow up very quickly. I know a couple of guys who perform technical analyses on ICO's and coins, maybe you could do something like that?

It would be a very interesting project - seeing as a lot of crypto stuff is spoken about online, scraping Twitter would be a pretty good place to gauge sentiment on a particular crypto. Good luck! Also, I think Python or C++ (or even both) would be a good idea for this

 

[LeChris]

@FrancisJoseph has dove into things similar to this a few times; he's also a pretty nifty C developer.

 

[Mikee]

Crypto isn't a standard asset - so building an algorithmic trading platform using existing presumptions would lead to blow up very quickly. I know a couple of guys who perform technical analyses on ICO's and coins, maybe you could do something like that?

It would be a very interesting project - seeing as a lot of crypto stuff is spoken about online, scraping Twitter would be a pretty good place to gauge sentiment on a particular crypto. Good luck! Also, I think Python or C++ (or even both) would be a good idea for this

Right, sorry to reply so late; had been busy with exams.

First and foremost, the beauty of quantitative trading and arbitrage is the very fact (specifically arbitrage) it is NOT presumptuous ! Arbitrage is a CERTAIN risk less profit opportunity, by definition. If anything, technical analysis (hello, 1980's called they want they're bloomberg terminal back) is presumptuous. Simply being that technical analysis is dead and has been replaced by quants. Making lines on graphs and guessing what a stock price will be based on Fibonacci patterns is hilarious to me that it even existed. No offense to the couple of guys you know, best of luck to them (not really, they're wasting their time).

Moving on, someone smarter than me has already thought of this

You must be registered for see links

!

This is a c++ api for bitcoin arbitrage.
Haven't read much on it, but I'll do some research and update.

As far as sentiment analysis goes, I like your thinking. That's a brilliant way of looking at it (and interesting too), considering how bloated and hyped the crypto markets are as well as prevalent in social media it is. In terms of people loving to share their excitement of their recent crypto purchases.

Tbh, I'll probably think more on sentiment analysis than arbitrage now that you mention it. Would be an interesting project.

And you couldn't be more right imo. Python great for sentiment analysis and data visualization, and c++ for low-latency whatever in order to read market feeds ASAP and react to them ASAP. (opinion based on what I've read on HFT in past year and a bit, this may be completely wrong, I understand that).

edit: words and grammar and stuff

 

[Adil]

Right, sorry to reply so late; had been busy with exams.

First and foremost, the beauty of quantitative trading and arbitrage is the very fact (specifically arbitrage) it is NOT presumptuous ! Arbitrage is a CERTAIN risk less profit opportunity, by definition. If anything, technical analysis (hello, 1980's called they want they're bloomberg terminal back) is presumptuous. Simply being that technical analysis is dead and has been replaced by quants. Making lines on graphs and guessing what a stock price will be based on Fibonacci patterns is hilarious to me that it even existed. No offense to the couple of guys you know, best of luck to them (not really, they're wasting their time).

Moving on, someone smarter than me has already thought of this

You must be registered for see links

!

This is a c++ api for bitcoin arbitrage.
Haven't read much on it, but I'll do some research and update.

As far as sentiment analysis goes, I like your thinking. That's a brilliant way of looking at it (and interesting too), considering how bloated and hyped the crypto markets are as well as prevalent in social media it is. In terms of people loving to share their excitement of their recent crypto purchases.

Tbh, I'll probably think more on sentiment analysis than arbitrage now that you mention it. Would be an interesting project.

And you couldn't be more right imo. Python great for sentiment analysis and data visualization, and c++ for low-latency whatever in order to read market feeds ASAP and react to them ASAP. (opinion based on what I've read on HFT in past year and a bit, this may be completely wrong, I understand that).

edit: words and grammar and stuff

Technical analysis is still very popular... and useful...
Think you should try multiple strategies though