Dear Carter,
Thank you for reading my work and thank you for posting the question. My apologies for taking so long to get back to you.
To be sure, quantitative methods have their applicability, but tend to be over very short periods of time. So here’s a sample of a trading decision making process for cryptocurrencies.
- Assess viability of the altcoin protocol, bias tends to be towards cryptocurrencies which already have a utility or better yet are already being utilized, to this factor, we assign a weightage (proprietary).
- Analyze team members of the protocol, including (but not limited to) Github commits, past experience, community support.
- Assess the level of community and grassroots support of a particular cryptocurrency, are there any dApps being built? Are there any off-chain activities being propagated to benefit the main chain? What is the level of research and development being put into improving key factors of the blockchain protocol, e.g. speed, scalability and security.
- Ascertain the liquidity of the cryptocurrency using various sources, including the top cryptocurrency exchanges and compare that data with trading patterns.
- Apply quantitative decision-making models based on volume, price movement, liquidity and timeframe with any correlation overlays (matrices) to determine and seek out trading opportunities.
There are various other factors when it comes to making trading decisions, I hope you do understand of course that these will be proprietary to preserve out trading alpha, but I do appreciate your interest and curiosity to know more.
I thank you for contributing to the discussion and to spur me to elevate the level of discourse.
As always, any errors or omissions remain strictly mine.
Yours,
Patrick