CromoLab — Hive

CromoLab is a predictive model generating BUY and SELL signals on the cryptocurrency market with 95% level of success.

CromoLab brings together modern econometric knowhow and melds it with the most modern information technology to create a very flexible cryptocurrency investment platform based solely on analytical methods.

CromoLab provides a platform that allows for building the cryptocurrency portfolio based on solid statistical evidence, which is digested by the statistical engine behind the platform.

The team behind CromoLab consists of world class professors in the subjects of econometrics, finance and information technology, supported by PhDs and researchers in econometrics, machine learning, financial mathematics as well as IT.

Lukasz Gatarek, Chief Data Scientist, said, “The most distinctive feature of this project is its innovative character in terms of combining two spuriously opponent fields of econometrics into one coherent mechanism. That is, mixing classical econometrics philosophy on one side, represented by leading world class econometrician in our team, Prof. Soren Johansen, and Bayesian econometric paradigm, represented by another leading world class econometrician, Prof. Herman K. Van Dijk.“

The CromoLab platform is the first analytical framework which provides the full spectrum of analytical service for the cryptocurrency market, starting with trend signal processing, going over portfolio construction and finally market-making, The CromoLab platform covers the needs of every cryptocurrency investor.

Make highly advanced statistical algorithms work for you by just one click!

Cromolab is the Only Crypto-Forecasting Tool You Will Ever Need

CromoLab is a predictive model generating BUY and SELL signals on the cryptocurrency market with 95% level of success.

Lukasz Gatarek, Chief Data Scientist, explained, “The key building blocks of the statistical engine behind the platform can be explained in five points:

1 – CromoLab assume that the cryptocurrency rate as any other exchange rate or financial asset price can be modeled.

2 – CromoLab assume that there is a probability distribution that stands behind this random walk, in terms of up and down movement.

3 – CromoLab assume that the evolution of this probability over time can lead to periods of rising trends and downturns.

4 – CromoLab assume that the historical quotations of the cryptocurrency rate can be explored for estimating on the relation between the price movements and the probability distribution governing the random walk behind.

5 – CromoLab assume that the entire spectrum of price series which are representing the cryptocurrencies can be modelled by means of cointegration analysis and if that is the case, we have the entire spectrum of methods developed by econometrics available for portfolio construction in such a market environment.”

The analytical platform is the main product developed by CromoLab, and customers will have options to buy and sell with a significant level of detail and accuracy.

Trend signaling for each cryptocurrency traded

Upward or downward trends with information on the exact timing of the start of such a trend and its length up to date are integral to this platform. Based upon the random walk probability distribution model the customer obtains signal which present current market sentiment:

Hedging portfolio construction

The CromoLab platform also allows for portfolio construction around a selected cryptocurrency. Given the selected cryptocurrency traded by the investor, the system selects the optimal set of variables to enter in the cointegration model. This set is selected among all the other cryptocurrencies analyzed by the platform by means of proper classifications algorithms which divide the spectrum of potential assets into applicable and nonapplicable as the hedges for a particular cryptocurrency.

Market making

Market making is based on the same cointegration model that is used for hedging. In this case, the cointegration model is applied to calculate the price of one cryptocurrency based on other cryptocurrencies given the statistical relation between them. This market, as with any other, tends to under and overestimate the value of the cryptocurrencies over periods of time. They go back to equilibrium quite fast, but if one knew when the price is in disequilibrium, then the profit taking opportunity would be substantial.

Krzysztof Kwieciński, CEO of CromoLab, said “The demand for cryptocurrency-specific analytics is growing tremendously due to the rapid development of the market and progressing tokenization of online services. The current gap derives from the emerging character of the cryptocurrency market as well as the scarcity of blockchain data scientific skills in the job market.”

Make highly advanced statistical algorithms work for you by just one click!