Sharpe Capital is developing a low-cost, technology-driven investment platform for global financial markets. It will use state-of-the-art machine learning algorithms to make market predictions, whilst also introducing a crowd sourcing application to gauge asset opinion.
The mobile application and web-based platform of Sharpe Capital will allow holders of SHP (the token offered in the ICO) to earn ether (cryptocurrency) for providing opinions on markets assets. The amount of ether awarded will be in proportion to the quality of sentiment given. Through this model of rewarding high-quality opinions of assets and POS (SHP ownership), Sharpe Capital will collect a vast databank of asset sentiment which can be used as a basis for future investment funds.
Sharpe Capital, upon regulatory approval, will issue a cryptoderiviative token (SCD). This token will payout dividends in accordance with the fund’s performance. The payments will be activated using smart contracts and paid from the company’s ether reserves.
The core of Sharpe Capital’s machine learning algorithm is neural networks. These will search for patterns and trends in financial data that will form a predictive of asset price in the future.
Through the mobile application, SHP token holders can earn ether for sharing their opinions/beliefs on numerous global equity markets. They will be asked to read a news announcement and then decide whether the news is positive or negative. The user’s opinion is then calculated into a reputation score based on the quality provided. This information will be stored on the blockchain ledger.
As well as the artificial neural networks, the machine learning model will boast advanced NLP algorithms. Sharpe Capital will integrate this into mainstream social media networks and other online media outlets to monitor market opinion in real-time.
The function here is to group ‘similar’ assets together based on common financial features. Through gaining an understanding of how similar certain assets are to one another, Sharpe Capital will be able to offer a more diverse portfolio.
Amazon Web Services will provide the basis for this platform and that means the having access to the best tools currently on the market. Additionally, this reduces costs through leveraging services via AWS Lambda functions.
Big data and little data will drive this model with historical price proven to be an unreliable indication of future price.
Predictions are to be offered on a range of assets spread over differing time spans.