Managing your Cryptofolio - science2innovation

Portfolio management is the act of making decisions to allocate your funds to a collection of assets for optimal dollar results. When those assets are cryptocurrencies the question is that of allocating funds to digital assets in order to maximise some crypto investment goal, for example, accumulate Bitcoin. In this paper, a reinforcement machine learning approach is built using historical data from the crypto exchange website Polonix with the goal of optimising investor gains over a set period. This model is then benchmarked against standard portfolio strategies used by traders such as buy and hold. The results show that the reinforcement learning approach is extremely effective as an investment optimisation strategy; but the authors warn that historical data is not always a valid way to predict the market.