Figure 1: BTC Price Prediction (1-13 days)
Price predictions for BTC are generated from our AI and ML platform, Quantum ML. DeFi developers can now call the QDT Chainlink node to get daily BTC price predictions at a lookahead period of 1,3,5,8, and 13 days. Developers can define their start and end date, meaning they can get the price prediction from a specific day or the entire history from the defined period. QDT price predictions can be utilized in a multitude of smart contract use cases within decentralized finance (DeFi), such as triggering automated on-chain trading strategies, calculating futures contract prices, and rebasing tokens based on predicted price action.
Model Performance Metrics
The first question people always have is, “how good is the accuracy?” To this end, a summary of model performance comparing BTC price prediction vs a buy and hold strategy is provided in the table below. This table is designed to provide the simplest comparison of how the model performs relative to the benchmark (BTC) over various time periods.
Essentially this table aims to answer the question, “If I use this model signal on a daily basis, what is the alpha I can expect to generate above a buy and hold strategy?” says QDT Product Owner, Sean Bockhold. “It’s designed to speak to both traders and investors because with it you can clearly see which models outperform, by how much, and over what timeframe.”
Figure 2: BTC Price Prediction Performance (model output vs benchmark).
A comprehensive list of additional metrics is available through the API. If you’re a developer and want to begin building with QDT’s BTC price prediction data, visit the QDT Chainlink node documentation.
What’s in a Prediction?
Behind each of these models is our massive data lake and a highly advanced Automated Machine Learning (AML) engine. Each model has over 1000 unique data inputs, including but not limited to, crypto price data, equities indices, energy costs, and blockchain data. Quantum ML, utilizes a feature called Autoseries, which constantly optimizes the model to improve signal accuracy and robustness. It does this by periodically reassessing a large search area of data, algorithms and hyperparameters settings.
While developers can now use QDT’s daily BTC price prediction signals, we plan to expand the on-chain data offerings available through our Chainlink node in the future to incorporate more data, and other cryptocurrency price predictions, like Ethereum, Cardano and more.
“We’re pleased at how quick and seamless it was to connect QDT’s existing APIs with multiple blockchains through a Chainlink node,” stated Rajiv Chandrasekaran, CEO and Co-Founder of QDT. “We can now sell data directly to DeFi developers and applications, showcasing the synergy between AI-refined datasets and data-driven smart contract applications.”
We selected Chainlink because it is the most time-tested and widely used decentralized oracle network in the industry, and we’re confident that through this partnership, our data and APIs will reach key developers within the DeFi ecosystem. We’re excited to see what the developer community comes up with. For other information about why we chose Chainlink, see our previous announcement.
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.
Quantum Data Technologies is an engineering company with a passion for using advanced technology to solve complex business problems. We are fascinated with the pursuit of innovation and to constantly push the boundaries of what’s possible with AI, Big Data, and Machine Learning. Our core product, Quantum ML, is a data platform that uses machine learning to predict the movement of financial instruments such as stocks, bonds, indices, fiat currencies, cryptocurrencies, commodities, ETFs, and more. Quantum ML utilizes data from 150,000+ unique sources such as global exchanges, financials, macroeconomics, and fundamentals, to automatically generate and backtest ML-driven strategies that inform financial and trading decisions.