The researchers from the International Hellenic University and Democritus University of Thrace in Greece have conducted a study supporting the “efficient market hypothesis” (EMH) for Bitcoin trading. They claim to have developed models that outperform the hodl strategy by nearly 300% in simulated crypto portfolios. The EMH theory suggests that an asset’s share price reflects its fair market value and all relevant market information, making it impossible to consistently outperform the market through timing or intuition. The researchers argue that EMH can be applied to cryptocurrency trading as an alternative to the traditional “buy and hold” approach. They developed four artificial intelligence models trained with multiple data sets and found that the optimal model beat baseline returns by up to 297%. However, it should be noted that the study was conducted using historical data and simulated portfolio management. The results may not change the opinions of those who are skeptical about the effectiveness of EMH.
– Researchers support the “efficient market hypothesis” (EMH) for Bitcoin trading.
– They claim to have developed models that outperform the hodl strategy by nearly 300% in simulated crypto portfolios.
– EMH suggests that an asset’s share price reflects its fair market value and all relevant market information.
– The researchers argue that EMH can be applied to cryptocurrency trading as an alternative to the traditional “buy and hold” approach.
– They developed four artificial intelligence models trained with multiple data sets.
– The optimal model beat baseline returns by up to 297%.
– The study was conducted using historical data and simulated portfolio management.
