USD-ETH Trading Pair Seeks to Increase Your Ethereum Quantity
Crypto-ML’s machine learning platform now issues trade alerts for the USD-ETH trading pair. The goal of this particular pair is to increase the quantity of Ethereum you hold over time. It does this by using machine learning to trade in and out of USD at opportune times. This should allow you to buy more ETH back with each trade.
Previously, Crypto-ML offered base-USD pairs, such as BTC-USD and ETH-USD. For these, the goal is to increase the quantity of USD in your account. But cryptocurrency enthusiasts often have a different goal: they want to maximize their crypto holdings.
To address this demand, Crypto-ML introduced the USD-BTC pair back in July of 2020. Now, we are releasing the next step, giving our platform four trading pairs:
Determining Your Ethereum Trading Goal
Here’s a guide for picking the best pair for your goal:
- If your personal goal is to have as many Ethereum as possible in the future, you would follow our USD/ETH model. Generally you choose this if you are bullish on crypto for the long term.
- If your personal goal is to have as many US Dollars as possible in the future, you would follow our ETH/USD model. Likewise, if you trade for regular income, this is also the model you would follow.
|Trading Pair Model||Goal|
|BTC/USD||Maximize fiat holdings by trading in and out of Bitcoin.|
|USD/BTC||Maximize Bitcoin holdings by trading in and out of US Dollar.|
|ETH/USD||Maximize fiat holdings by trading in and out of Ethereum.|
|USD/ETH||Maximize Ethereum holdings by trading in and out of US Dollar.|
While these goals might seem similar, they will in fact play out differently over time. This example shows how over a few trades, you can gain USD but lose BTC.
Machine Learning Implications
Just as these models can be aligned to your goals, it’s critical to also align the machine learning goals. Machine learning always has a goal. It must have something it is optimizing toward so that it can create a model to achieve that goal as frequently as possible. Learn more about how to predict price with machine learning.
As such, if our models have the goal of maximizing USD, but your goal is to maximize ETH, you will not necessarily be happy with the results.
Due to this, the USD/ETH model will have an entirely different backend than the ETH/USD model. It will look for different patterns and make different recommendations.
Ethereum Trading in Practice
Our current ETH/USD model has some key characteristics:
- At rest, your balance is in USD (or comparable fiat or stablecoin).
- When our Neural Networks predict an increase in Ethereum price, your balance will be traded into ETH. As soon as the run is done, your balance will be moved back to USD.
- Over time, your USD balance should go up.
This means the majority of the time (say 90% of the time), your balance is kept in USD. The other 10% of the time, you are in ETH to capitalize on a quick movement.
Our Trade History for ETH/USD is expressed in USD. That is the key metric our machine learning is working toward.
With the alternate USD/ETH model:
- At rest, your balance is in ETH.
- When our Neural Networks predict a relative increase in US Dollar price, your balance will be traded into USD. As soon as this is done, your balance moves back to ETH.
- Over time, the quantity of ETH you own should go up.
By comparison, in this situation, perhaps 90% of the time, your balance is in ETH The other 10% of the time, your balance is in USD.
This new trading pair is now available on Crypto-ML along with some additional changes:
- Updates to the Member Dashboard, namely for the trade alerts, showing more information on open and closed positions, such as current profit, targets, and stop-loss points.
- You can configure Auto Trade on the Auto Trade Dashboard.
Questions or Comments?
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