AI trading and machine learning have long been envisioned as the next step forward in evolution of finance. Right now you can see the AI uprising happening all around you, from your smartphone, over your kitchen appliances, to every other aspect of your life. Machine learning is evolving at an ever-rising pace and financial institutions are leading the way in terms of adoption. Traders and companies all over the world are switching to artificial intelligence and, as a direct result of that, are executing trades with increasing efficacy. We decided to take a closer look at one of those market trailblazers, a California-based startup called Coinvenue, and to determine how exactly they plan to contribute to the revolution.
Coinvenue LLC is a company looking to break into the mainstream with an easy-to-access, easy-to-use crypto trading platform.
Under The Hood
Their website offers you an ability to start using the Coinvenue platform without having to go through the hassle of registering an account. Coinvenue’s advanced charting tools and real-time market data collected from popular cryptocurrency exchanges are available to even the basic “free account” user from the get go. The platform will give you data like top market performers, worst market performers, order book state, and other important tidbits that will help anyone performing AI trading.
On topic of the trading itself, Coinvenue utilizes the innovatively-named “Artificial Intelligence Algorithm” which allows the platform to predict future trades. This algorithm was developed by BTCmetrica, a project focused on creating a state of the art AI-backed software that allows its clients to “play and win” on cryptocurrency markets. Additionally, BTCmetrica helps enterprises and portfolio managers to know how to apply machine learning in a way that will bring them the best financial outcome.
Their technical solution is focused on finding the “alpha” of a certain cryptocurrency, which is a measure of the active return on their investment. An alpha of 1% means the investment’s return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market. Alpha, along with beta, is one of two key coefficients in the capital asset pricing model used in modern portfolio theory.
BTCmetrica’s website gives its potential customers a glimpse into what they can do by offering real-time prediction of Bitcoin’s next short term price move directly on their website. They dubbed this prediction the “AI sentiment”, which is presented in form of a color-coded scale from 0 to 100. A sentiment of -100 means that the BTCmetrica’s algorithm is 100% confident that the price will fall, a sentiment of 100 means that the model is 100% confident that the price will rise. A sentiment of 0 predicts that the price will stay as it is. At this moment, Coinvenue offers only Bitcoin trading.
Of course the platform isn’t exactly a charity and offers a “registered account” level of access, one that comes with all the features of a free account and with added benefits of placing orders directly on the exchange, custom watchlists and an ability to earn Rewards with every order the bot makes. Coinvenue also guarantees 99% availability of their full services on a monthly basis to customers who decide to pay 9,99 a month for registered access. Registered accounts can be cancelled at any time, if the customers so desires.
To create a Registered Account you have to go through a registration process, where you will be required to provide certain personal information and create a password that’ll protect your account from unauthorized access. Coinvenue reserves the right to suspend or terminate your account (free or registered) if any information provided during the registration process or thereafter proves to be inaccurate, not current or incomplete.
Once a user creates his/hers account, he/she is required to link a cryptocurrency exchange account with the Coinvenue platform. Exchanges generate special public keys for purposes of AI trading and these play a key role in setting up your automated trading system. Coinvenue allows its users to chart, track their balances and trade via following exchanges:
- Coinbase Pro
The Rewards System
This is a new feature implemented by Coinvenue, seemingly designed to motivate the community to trade more. Every market order you make through Coinvenue qualifies for the Rewards program. The platform sends orders to the exchange in customer’s name, with 95% of all market orders being sent at same/slightly lower price than it was originally set by the customer. This is where the algorithm from above comes into play; it predicts Bitcoin price movements so Coinvenue decides when to place its customer’s order on the exchange. If the algorithm is nearly-100 percent sure about Bitcoin’s next short-term movement, the software can place a slightly better order that should bring extra profit to the customer. This order is usually 0,5 – 3 USD better than the price the customer originally set.
The reward is activated only if the price Coinvenue sends turns out to be worse. If Coinvenue manages to send the order at a better price, then the Reward is negative and the Reward balance is reduced. In this case, the user has saved money on his crypto exchange account due to the better order price. If Coinvenue sends the order at a price without saving the user money, the user receives their corresponding Reward in BTC, thus having a more profitable trading experience. You can check out some examples of how the whole system works here.
Other key features
Coinvenue does offer some interesting features to its customers:
- Advanced technical analysis tools with 30 technical indicators, 33 technical objects, 9 default & 100+custom timeframe
- Multichart mode which allows you to instantly change chart layouts in one click. This mode supports up to 6 charts in one layout.
- Linked charts, meaning that all charts can be linked to an instrument that user selects in terminal workspaces. As a result, a click on the instrument refreshes charts with corresponded instrument, no need to spend time for typing.
- Custom watchlists: Letting you organize your favorite instruments into Watchlists.
That being said, the platform is still young and lacks some important core features. In near future, they promise to implement the following:
- Strategy Builder: New age of algorithmic automated trading. With no knowledge of programming or hassle of code, anyone can build a robot.
- Execution: Strategies run faster for executing transactions server, saving at least 50-100 milliseconds ⏱ for each trade.
- Profit/Loss: Running a strategy through the control center is like opening a single position. You can see unrealized and realized P/L as well as set Take Profit ⇡ and Stop Loss ⇣ for the particular strategy
- Market Data and back-test: Coinvenue provides the deepest historical data for all popular crypto exchanges, which is available for back testing your long-term strategy. We have also created the fastest and most accurate testing on bars.
- Realtime updated Tops: System prompts with top cryptocurrencies in realtime, for top losers, top gainers and most traded ones for the last period.
- Trading directly from charts: Active Orders and Trades instantly synchronized with charts.
- Editing Sell Stop Buy Limit
- Stop Loss and Take Profit orders
- Any trade will be able to be opened at one exchange and closed at another giving a clear picture of generated revenue.
Coinvenue is an interesting platform looking to find its place on the AI crypto trading market. While most of its core features are still a work in progress, it does promise a lot. Maybe even too much. However, as AI becomes more powerful and capable, finance industry will look to keep up the pace and grow alongside. So many questions remain at this point in time: will Coinvenue fully realize its vision and grow into a dominant customer-exchange AI intermediary in the future? Will some other project swoop in and offer a better solution to the market? Will the AI become too powerful and take us into the dystopian future from the movie Terminator? We’ll just have to wait and see what the answers are.