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[PRE-ANN] Coinoindex.com - cryptocurrencies industial average. singapore
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Author Topic: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.  (Read 23730 times)

coinomat

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I believe cryptocurrency industry is mature enough to have its own Dow-Jones index. Coinoindex.com will track the performance of top 20 alternative cryptocurrencies (in market capitalazion) relative to Bitcoin.

The rules of index calculation:

- Top 20 altcoins by market capitalization are selected. Tracking assets ("pegged") such as CoinoUSD or NuBits are excluded. Also each of them has to have a trading volume over $1,000 during last 14 days.
- Each coin has an equal weight in the overall portfolio. I do not think that weighting by capitalization makes sense, since it can be easily pumped artificially (see Ripple Auroracoin and so on). Since the index is an analogue to Dow-Jones rather than S&P index.
- The price of the portfolio of 20 coins relative to BTC is calculated and updated every minute. The initial index value is set to be 1000. So the index value tracks the performance of 1000 BTC investment in a selection of 20 altcoins.
- Each week the portfolio is updated based on current market capitalizations. If a coin drops from top 20 list it is replaced by a new one which entered the list, the overall portfolio is rebalanced taking into account equal shares of each coin.

You can see current Coinoindex values and its composition at Coinoindex.com

Also there will be launched a tracking NXT AE asset, so you could invest in the Coinoindex portfolio without buying each coin included in it. I estimate that the altcoin market will demonstrate superior performance relative to BTC price, just as S&P and Dow-Jones indexes perform better than USD on which there are based (look at Dow Jones for example http://www.macrotrends.net/1319/dow-jones-100-year-historical-chart). It works like investing in so called Index funds in traditional sense, you can invest in a mutual fund which tracks S&P performance, for example.

The Index Asset will be traded at AE, the costs for running the index will be covered by the market making spread for buy-sell orders at AE. The launch is planned in about a week. Before the launch the index will be set to 1000 again.

If anything is not so clear please ask.

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Sebastien256

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #1 on: May 17, 2015, 05:55:11 pm »

I like the idea!  :)

Hmm, what Burst and Startcoin, among others, doing in the list? I have nothing againts the coins, but it seems to me that the rules you set yourself  are not respect.

ps. official thread link is not set correctly on the site.
ps2. It would be nice if the portfolio would be ordered in decreasing marketcap, instead seemingly random order.
« Last Edit: May 17, 2015, 07:06:42 pm by Sebastien256 »
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #2 on: May 18, 2015, 06:22:00 am »

Yes this is a list from two weeks ago, running in test mode now!
after the official launch the index will be reset and the list updated.
I like the idea!  :)

Hmm, what Burst and Startcoin, among others, doing in the list? I have nothing againts the coins, but it seems to me that the rules you set yourself  are not respect.

ps. official thread link is not set correctly on the site.
ps2. It would be nice if the portfolio would be ordered in decreasing marketcap, instead seemingly random order.
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #3 on: May 19, 2015, 02:04:33 pm »

Crypto is rising, check it out: Coinoindex.com. (the coin selection is a bit off at the moment, but still it gives a feeling) Probably this will be a very good time for starting the cryptoindex, feel like crypto is getting slowly back on track.
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bob_ggg

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #4 on: May 19, 2015, 05:13:53 pm »

Have you backtested your definition of the index with that published in jnxt.org/crypto25 ?
How do you expect the two of them to compare/perform?

Have you considered including some simple relative strength parameter in your index?
My limited backtests show that performance improves if you avoid falling knives.
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #5 on: May 19, 2015, 07:56:34 pm »

Have you backtested your definition of the index with that published in jnxt.org/crypto25 ?
How do you expect the two of them to compare/perform?

Have you considered including some simple relative strength parameter in your index?
My limited backtests show that performance improves if you avoid falling knives.
Yes, I've seen that index, but I choose not to weight the coins by capitalization, which can be easily tricked.
So it's like Dow-Jones, where you just use the stock prices. In S&P stocks enter the formula with weights based on capitazation.
So my index is something like you buy a bunch of good coins and see what happens to your account balance in BTC :) You make no assumptions on which coin is better.
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #6 on: May 21, 2015, 11:02:41 am »

The Index will be officially launched at the First of June 2015. Portfolio will be updated and Index reset to 1000. Starting from the next week you'll be able to buy corresponding Index asset at AE. Its value will be tied to BTC price, and will correspond to 1 BTC. It makes sense to buy the asset before the Index launch if you want to track how one BTC investment will perform. After the Index launch the asset sell value will reflect the current Index performance.
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bob_ggg

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #7 on: May 21, 2015, 03:46:18 pm »

Have you considered including some simple relative strength parameter in your index?
My limited backtests show that performance improves if you avoid falling knives.
So my index is something like you buy a bunch of good coins and see what happens to your account balance in BTC :) You make no assumptions on which coin is better.
If you have access to historical data, I wonder if you could evaluate the impact of adding a simple rule such as avoiding the inclusion in the index of the, say, 5 worst performers.
As I wrote, it seems to have a sizable impact. I do not have enough experience with the liquidity of the market and it could be that selling a small cap coin could have a disruptive impact on its price.
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bitcoinpaul

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #8 on: May 21, 2015, 04:19:48 pm »

Pretty neat (Index and Index Asset)
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #9 on: May 21, 2015, 05:02:09 pm »

Have you considered including some simple relative strength parameter in your index?
My limited backtests show that performance improves if you avoid falling knives.
So my index is something like you buy a bunch of good coins and see what happens to your account balance in BTC :) You make no assumptions on which coin is better.
If you have access to historical data, I wonder if you could evaluate the impact of adding a simple rule such as avoiding the inclusion in the index of the, say, 5 worst performers.
As I wrote, it seems to have a sizable impact. I do not have enough experience with the liquidity of the market and it could be that selling a small cap coin could have a disruptive impact on its price.
Trick here is it wouldn't be an index then, you sort of construct a trading rule... I chose even not to weight by capitalization because of that.
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tersagun

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #10 on: May 22, 2015, 07:14:09 am »

Hello mate and good luck with the new instrument :-)

But can you please let me know why one should prefer Coinoindex over buying 20 different coins from Polo and hodling?
Am I missing a point?
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bizz

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #11 on: May 22, 2015, 07:48:14 am »

Hello mate and good luck with the new instrument :-)

But can you please let me know why one should prefer Coinoindex over buying 20 different coins from Polo and hodling?
Am I missing a point?

Same reason why S&P 500 is probably the most popular asset in the world: avoid hassle of buying/trading/keeping/calculating yourself and get exposure to industry.
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lemonhead

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #12 on: May 22, 2015, 10:43:56 am »

Cool thing!

The Link to the NXT Thread on coinoindex.com doesnt work...
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #13 on: May 22, 2015, 10:58:11 am »

Yes, I'll update the link before launch
launch is on the first of June
Cool thing!

The Link to the NXT Thread on coinoindex.com doesnt work...
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #14 on: May 28, 2015, 09:31:20 am »

Coinoindex asset is available for sale at fixed price now, the index will be reset on the first of June. The asset sell price corresponds to 1 BTC value in NXT. So if you buy it before the index launches you can see how 1 BTC investment it top 20 alts evolves over time.
NXT AE asset ID: 13634675574519917918
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boomabc

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #15 on: May 28, 2015, 09:37:47 am »

how will you hedge this asset? Sell nxt and buy underlying coins?
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #16 on: May 28, 2015, 09:46:28 am »

how will you hedge this asset? Sell nxt and buy underlying coins?
Yes, there's no other way to do it.
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taggartd

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #17 on: May 28, 2015, 10:55:50 am »

Coinomat there is no sell order on AE...
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coinomat

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #18 on: May 28, 2015, 11:00:24 am »

Coinomat there is no sell order on AE...
There is :) Maybe you took a look when the bot was updating the order (due to changing NXT/BTC rate)
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taggartd

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Re: [PRE-ANN] Coinoindex.com - cryptocurrencies industial average.
« Reply #19 on: May 28, 2015, 11:04:06 am »

Coinomat there is no sell order on AE...
There is :) Maybe you took a look when the bot was updating the order (due to changing NXT/BTC rate)
Yes.. now i see the sell order. Thanks
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