Check out CoinLoop.io

In November of 2017 we launched CoinLoop. Six months before this a group of crypto & finance enthusiasts sat in a room and brainstormed how we could create a machine learning bot which would be able to predict movements in cryptocurrency markets. After numerous brainstorming sessions, plenty of arguments, too many late nights and countless meetings with A.I. experts - we came up with a trading system we called ‘CoinBuzz A.I.’. We were sure this was going to predict price movements with pinpoint accuracy.

“We were sure this was going to predict price movements with pinpoint accuracy.”

The system analysed real-time exchange data, a careful selection of mathematical & behavioural technical indicators as well as news article sentiments. The aim was to learn about how and which of these sources impacted the prices of individual Cryptocurrencies. After two months of work by July, we had a working prototype. So the results? The first signals we received were good, but far from great. After analysing signal performance we realised that we would have lost a substantial amount of money had CoinBuzz been trading on our behalf.

“- we would have lost a substantial amount of money had CoinBuzz been trading on our behalf.”

How had we got it this wrong? Back at the drawing board we sat for hours thinking about what we had missed, what assumptions we had wrong. Had all of our knowledge of markets, corporate finance & the world of investing been misappropriated?

The missing link?

Unlike the traditional financial markets we were accustomed to — Cryptocurrency was an entirely different beast. The main difference being the lack of institutional money driving market efficiencies and ‘normal’ reactions to good or bad news. We needed another way to measure how the market was currently ‘feeling’ about a certain coin. Enter mass scale Social Listening- a technology originally developed for large brands to help them understand what their customers are saying about them. We developed a system which measures ‘social volume’ (numbers of mentions about a certain coin or project) and the sentiment of those mentions.

We trained our bot to learn about how trends in social volume and sentiment impacted the price of each coin. Sometimes there was a correlation between increase in social volume and increase in price. Other times there was not, however we did notice that the addition of social listening greatly increased the performance of our bot overall. At this point we would like to acknowledge that during this training period Cryptocurrencies were experiencing a massive rally. Even though the majority of the market was going up there were still a large amount of coins that were not and our bot managed to avoid most of them.

Wait you mean ‘Loop A.I.’ Right?

By October of 2017 we bad built a bot that was making correct calls on market movements - but what to do with it? Should we keep it for ourselves, make it open source, or charge for it. In the end we decided to create a free cryptocurrency dashboard where the A.I. bot could live, called CoinLoop. You can find out more about why we did this here.

(TLDR: We wanted to build a spot for cryptocurrency investors which has everything they wake up and check every morning, and more)

We launched CoinLoop in November of 2017 with a great response from the crypto community.

Historical Highlights

At the time of writing this article we are celebrating our 50th published A.I. Signal. You can find a full dump of our first 50 signals to date in UTC as of 6:00am 29th of January here. Below is some of the best (and worst) signals made by our bot in the last few months.