CML-I Trading Strategy
CML-I is a cryptocurrency investing strategy that uses machine learning to determine entry and exit points. Whereas our other strategies fall into a “swing trade” category, CML-I targets longer-term positions, capturing bigger market movements.
How CML-I Works
CML-I is based on the same technology foundation as CML-A. That means it utilizes the same prediction, anomaly detection, and trade mechanics engines. As such, CML-I is really just a tweak to the existing platform.
CML-I also gathers the same data as our Market Index. With this, it can help cryptocurrency investors navigate bull and bear cycles.
Put together, it’s considering the following inputs:
- Exchange data
- Technical indicator data
- Social sentiment and volume data
- Search sentiment and volume data
- Bitcoin dominance data
Learn more about this approach in our Machine Learning Technology Guide.
What You Can Expect
In practice, CML-I generates about 25% of the number of trades that CML-A does.
It utilizes a longer-term perspective in its decision-making, helping to avoid the choppiness of intra-day cryptocurrency markets. CML-I is designed to seek out and capture longer bull runs.
Based on the time CML-I has been running behind the scenes, it has significantly outperformed our other strategies.
That said, there are some considerations:
- Profit is not booked as frequently as with CML-A. This may result in drawdowns and oscillations in positions.
- Since fewer trades means less feedback, it may take longer to know if CML-I is working the way you want.
- During sideways or down markets, CML-I may stay silent and keep you out of the market completely. While this may be a bonus as it reduces risk, it also means CML-I may miss some smaller opportunities.
As a general best practice, it’s good to select more than one strategy when using Auto Trade.
Investing vs Holding
Crypto-ML Auto Trade gives you the ability to allocate percentages of your portfolio to Hold, CML-I, CML-A, CML-T, and CML-X.
Holding is similar to longer-term investing. However, markets move in cycles and do not go up forever.
Moving some of your funds out as the market becomes over-extended and then buying back in during the lull of a bear market can result in significantly improved returns.
If you are very bullish on cryptocurrency, you can use Auto Trade to both hold cryptocurrency and realize gains from time to time.