Optimization of the Method of Technical Analysis of Cryptocurrency Price Differences Movements

Abstract

Cryptocurrencies increasingly cover the world market and grow rapidly. Cryptotrading, namely cryptocurrency arbitrage is one of the most reliable methods of obtaining benefits from this market. This article describes the approaches to processing data on the movements of the cryptocurrency exchange rate in the market, their features and disadvantages. The two main methods of cryptocurrency analysis (fundamental and technical) are described in more details. Based on the stated theses and mathematical statistics, a method of technical analysis of cryptocurrency price differences on the same exchange has been developed to achieve the maximum number of transactions with minimal losses. The method is suitable for both monotonous currency price leaps and trend movements of the currency price, because it adapts automatically and consistently with given parameters to each move in any direction. Based on the created method, some software algorithms have been developed that allow visualization of all related processes. The thorough work was carried out on the optimization of the developed algorithms by the selection of the most relevant parameters. In the article, graphs of the results and pseudo-code of the algorithms and its optimization are presented. The algorithms of modified cryptocurrency arbitrage ensure the maximum profit for a trader.