Project Updates: All the latest news from BCUBE. Dear BCUBEIANS,.
16 May 2023, 17:03
Project Updates: All the latest news from BCUBE!
Dear BCUBEIANS,
Thanks for your feedback about the communication issue that you are facing with the updates. I entrusted others to do this job for me in the team as I am really very busy with many other things but it is not working as I expected so I will take full responsibility for this and will update you myself.
1. Strategy Factory & Strategy Selector aka SFSS, AI Infrastructure, AI Meta Bots
I want to make something clear here that we are using these terms with no proper understanding so will write in detail about it. First of all, none of these details or naming was really necessary but I have learned from this experience and it will be a simple product launch next time.
SFSS or AI Infrastructure: They are one and the same. They are not bots or strategies (algorithms built to identify the buying or selling opportunity). They are a technology that takes all the strategies as inputs and then creates several variations of the strategies & picks the one that it feels is good for the current market trend. If you have a decent strategy then it will become a good strategy, the good strategy then it will become great, if you have a great strategy then it becomes the best ever strategy but if you have fed the system with a bad strategy then it will remain that way. Also for this infrastructure to work properly, we need to feed different types of strategies such as Trend following, mean reversion, momentum, etc. It will be even better if there are some exogenous data such as sentiment data integrated into the normal “Price and volume” based strategies. We will integrate the sentiment data for the strategies next year in Q1 2024.
This infrastructure is revolutionary because there are platforms like TradingView where traders build their strategy and it loses its alpha very soon or they are constantly optimizing their strategies which can work sometimes or are prone to human error leading to over-fitting of the models. Only sophisticated technology can help them so this infrastructure will play a huge role for all the traders who want to build their own strategies without the need to take care of them in optimization. This can be even licensed to funds or portfolio managers hence we are taking a final decision on the legal firm with whom we want to work with for patenting of this technology.
AI Meta Bots: We will feed all the library of strategies that we have developed historically and even recently into our AI Infrastructure. It consists of Trend Following, Mean Reversion, Momentum, etc.
It is completely automatic. Picking of the coin, % of allocation in the trading portfolio, direction (long & short), SL, TP, everything will be decided by AI in real-time. The self-adapting nature is what makes it so unique. This happens in auto rebalancing, not just in terms of coins but also in terms of direction (long or short). It will pick one or several coins, assigns them % of the portfolio, and selects the direction, everything happens automatically. For example, if you have $1000 then BTC, ETH, and BNB will be 20% each on the long side & 10% XRP on the long side but 30% of ADA is on the short. This keeps changing constantly as the market changes. It keeps adapting to the market condition.
For example, All those strategies that were in the swing bot will also be fed to these strategies. Swing Bot doesn’t consist of mean reversion strategies and takes only trend following (as of now) which explains the flat performance in the last two months. So now we have the mean reversion strategies also which go into the SFSS to come out as “AI Meta Bot”.
There won’t be any more Swing Bots or any other type of bots. It will be only a few Meta Bots that will consist of two or several coins within a single bot, hence the name “Meta”.
There will be very few meta bots. For example,
BTC (Hourly, Daily, Weekly TF)
ETH (Hourly, Daily, Weekly TF)
BTC-ETH (Hourly, Daily, Weekly TF)
BNB-ADA-MATIC (Hourly, Daily, Weekly TF)
BTC-ETH-BNB-XRP-ADA (Hourly, Daily, Weekly TF)