-
Notifications
You must be signed in to change notification settings - Fork 1
Market Universe
mwander000 edited this page May 18, 2022
·
7 revisions
The investment universe we create consists of seven cryptocurrencies related to or directly used to trade NFT's. They are all of varying market-cap classes. When taking into account transaction costs, we assume we are trading these assets on Binance, which takes a 0.1% fee on each transaction. We also assume that all cash has been converted into USDT for trading purposes.
- Solana (SOL), ~$44B
- Cardano (ADA), ~$39B
- Avalanche (AVAX), ~$26B
- Polygon (MATIC), ~$11.5B
- Decentraland (MANA), ~$5B
- Flow (FLOW), ~$2.5B
- Theta Fuel (TFUEL), ~$1.1B
For backtesting purposes, we create a capitalization-weighted index of our universe which serves as a benchmark long-term "buy-and-hold" strategy to compare our trading algorithm against. The weights of this index are rebalanced quarterly, similar to the S&P 500.