In periods of sideways movement in prices or downturns, the relative outperformance or underperformance of one cryptocurrency in comparison to another becomes much more important.The relative selection or relative strategies can thus contribute substantial value to your portfolio value.
In this post we would like to present another example of using BittsAnalytics platform for relative strategies. We calculate sentiment with machine learning from tweets about individual cryptocurrencies. Status was one of the cryptocurrencies which even during the downturn displayed a surge in sentiment on 3rd February, see e.g. our tweet from that time: twitter.com/bittsanalytics/status/959984730455363584. Status sentiment continued to increase, see the latest sentiment chart below. Since sentiment surge on 3rd February, Status returned 5%, while Bitcoin lost around 25%. Status thus outperformed Bitcoin by around 30 percentage points. Even in downturns there is still a wide dispersion in returns of different coints and employing relative strategies can potentially lead to better overall portfolio returns.
The use of sentiment analytics for relative selections is just one of many ways you can improve your cryptocurrency trading with our BittsAnalytics platform. You can find more examples here: http://www.bittsanalytics.com/blog/category/bittssignals/ or you can start using BittsAnalytics platform by becoming our user: https://www.bittsanalytics.com/subscribe.php