Risk Management

Bálkar has developed self-learning Neural Network trading strategy, a form of Artificial Intelligence software, with the goal of maximizing returns and minimizing the risk of BTC / USD trading.

The algorithm is a machine learning algorithm which updated itself if it finds more profitable trading setups.

Bálkar offers Risk Management and Remote trading of Bitcoin – BTC, where the AI automatically buys and sells or short sells BTC on behalf of the customers. The customer creates an account on an exchange, which Bálkar trades on, shares the so-called API key and API secret to their account with Bálkar for trading.

Customers have full control over their account and have an overview of all the transactions that take place on the exchange and can monitor their position in real time.

Bálkar Miðlun operates Bitcoin Risk Management and Remote trading on two markets. Bitstamp which is an exchange for Bitcoin where you can buy and sell Bitcoin. Bitstamp is a regulated entity in Luxembourg and is one of the oldest exchanges for Bitcoin. The other market is Bitmex, which is a derivative market where it is possible to buy and sell Bitcoin forwards with a leverage. This market offers its users leverage, i.e. to trade with borrowed funds and to short sell Bitcoin, i.e. profit from declining price. Bitmex is not a regulated entity and is incorporated in Hong Kong.

Risk management of Bitcoin trading.

The top chart shows the price of Bitcoin BTC in USD, colored in blue and read where the Risk Management is buying and selling. The lower chart shows the cumulative returns of Bitcoin BTC and he Risk Management service, colored blue or red depending on buying or selling.

This chart shows annual returns of Bitcoin BTC and the Risk Management service colored in blue and red depending on when it is buying or selling.

The Sharp Ratio for each year based on hourly ticks. The Sharp ratio shows returns minus risk free rate divided by the standard deviation of the returns.

The annual returns of Bitcoin BTC compared to the returns of the Risk Management service.

Risk Adjusted Returns of the Risk Management service show the adjusted returns compared to the underlying risk of the Bitcoin BTC market.

If you are interested in having your BTC – Bitcoin traded for you with this service you can register with Bálkar for Risk Management and Remote trading here.

Other assets that are being tested

Bálkar will later offer Risk Management and Remote trading of Ethereum (ETH) and Bitoin SV (BSV). The AI does not have as much experience trading these coins as Bitcoin BTC, but you can follow the trading results following the link below as we gather experience. Later the AI might also be deployed on other cryptocurrency pairs, traditional currency pairs, stocks or bonds.

You can see our Risk Management testing for other assets here.

Email: balkar@balkar.is

Tel: +354 620 3700