In this project we implemented a trading agent for cryptographic currencies, which uses the currencies price and volume history, as well as published posts and comments on Reddit forums. Its target is to change the portfolio appropriately, in order to maximize the profit. In the project we rely on the assumption that a correlation exists between the currency’s price and the textual publications about it on the different forums.
To implement the agent algorithm, we used different techniques of NLP (Natural Language Processing), Deep Learning, internet crawlers, new state-of-the-art trading algorithms and more.
After implementing all the various components of the project, we didn’t succeed to encounter any significant correlation as we expected. At the full project report, we cover all the possible causes and suggest feasible solutions for a follow up project.
At the project’s 2nd part, we examined the effect of adding risk factor constraints to a state-of-the-art trading model for cryptographic currencies. Today, all the trading algorithms in this area consider only maximizing their profit with no respect to the portfolio risk at all.