So, from the very jump, the author decided to visit the Signals Network website and see what they have available thus far on the sign-up, just to see if they have a working product.
Once the registration was successfully completed, we logged onto the website and was taken to the ‘marketplace’:
Here are a couple of screenshots (hopefully in high enough resolution to see what’s going on).
Above is one of the strategies labeled as ‘Bollinger Bands.’
Overall, the strategy doesn’t appear to be too terribly effective with a win rate of 38.74 percent and a loss rate of 61.26 percent.
It looks like one can choose which securities can be traded using this strategy. The author is a bit skeptical about the efficacy of the strategies that have been presented – but we’re assuming that in the ‘alpha’ mode, these are just filler strategies to give folks a feel for how the marketplace would ultimately function once the website is up.
Out of all the features, these are the only ones that are currently available for individuals to view at the present moment.
Another fundamental question worth pondering is whether this would rank supreme over the cryptocurrency signal finder that’s available on TradingView:
While one can’t backtest this strategy, per se, it wouldn’t be particularly difficult for one to do so.
The author also wonders where the machine learning portion of this whole thing comes into play, but we’ll get into that a bit later.
So, let’s take a look at the whitepaper, shall we?
This next excerpt, in essence, also describes the gist behind what the Signals Network does:
So, more or less, they look at exchange data (prices, etc. of all coins), allow you to select between a host of indicators and choose which parameters you want to set for each. The gist I’m getting is that they also allow you to integrate the ‘machine learning’ aspect into the indicators that you choose.
I find that last bit of information interesting, however, because machine learning, in itself, especially when applied to markets, is a process that takes a LONG time. The coding of the indicators is something that’s relatively rudimentary when looking at the grand scheme here.
Here’s a really good Medium article that explains the concept of machine learning algorithms in greater depth.
This information is law when it comes to creating viable machine-learning algorithms, and it is one of the main reasons why creating a viable machine-trading algorithm is something that requires weeks of testing before a viable strategy for entry and exit can be produced.
So, Does That Mean This Whole Thing is Bunk?
No. It just means that the reliability of the strategies that one creates on this platform can’t be determined based on historical data alone. It needs to be tested against live data in order to ensure that the trading algorithm hasn’t become ‘stale.’
Imagine if you created a strategy for trading the stock market in the 70’s. The mentality and culture of the United States (the country we’re looking at in this example), is entirely different than today. In the same way, the sentiment and the atmosphere in the cryptocurrency markets in June 2017 or December 2016, is entirely different than what it is now, at the time of writing, in March 2018.
Other Important Information
Now, these aspects of the program could be useful – minus the ‘custom indicators’ portion for the reasons that we’ve mentioned above regarding the machine learning based on the prior historical data.
This is more important information that’s within the whitepaper as well. One of the more important aspects of this whitepaper right here is the fact that they’re working with iExec.
Here’s a little bit of information regarding them.
We’ll dig more into that a bit later.
Their Business Model
Source: Signals Network Whitepaper
What Exchanges Will They Be Released On?
That was an administrator from their official Telegram that the author spoke with. It remains to be seen whether those plans will come to fruition or whether they stated that to simply pacify me in the chat. Take everything with a grain of salt.
Based on this, there appears to be some interest in the token for sure.
This probably is a fairly solid investment in the short-term (from ICO to actual launch on the exchanges). The author does not anticipate that it’s going to last too far into the long-term, but it should definitely be a viable investment if you can get in early enough on the ICO.
Disclaimer: Investing in cryptocurrencies and ICOs carries a lot of risk. BTCManager does not endorse this ICO in any way. The opinions stated here are the author’s and do not represent the views of BTCManager. The author has not invested in the Signals Network ICO.