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Crypto Trading Robot Ecosystem WHITE PAPER (PDFDrive)
Crypto Trading Robot Ecosystem WHITE PAPER (PDFDrive)
WHITE PAPER
http://www.netcentric.io/
Abstract
NetCentric provides a quantitative, automated, artificial intelligence. The trading decision pro-
decentralized, and intelligent wealth manage- cess is fully automated and modularized — as-
ment platform for the cryptocurrency market. sembled in a robot capable of performing quanti-
Our quantitative models are developed with cut- tative analysis, risk management, trading activity,
ting-edge technology based on complex net- and portfolio management.
works, quantum mechanics, chaos theory, and
Preface 01
5. Smart Contract 14
6. NET Token 15
NET Token Definition and Applications
8. Team 23
9. Advisors 24
Preface
In the aftermath of the global financial crisis of 2008, centralized authorities sparked a massive amount of fiat liquidity
among central banks across the globe. As a result of the U.S. Federal Reserve decreasing key interest rate from 5% to
0.20%, many financial asset classes, such as equity and real estate, have skyrocketed to a historical high. However, the
increased value in stocks and real estate only benefited a small group of individuals known as the 1%.
In today’s investment environment, a top fi- NetCentric hopes to decentralize wealth man-
nancial investment entity can consistently in- agement services by providing quantitative
crease investor’s wealth and beat economic strategies using robotic trading applications.
asset inflation rate. However, these investment Leveraging the blockchain technologies and
opportunities from top-notch private wealth cryptocurrencies, NetCentric’s vision is to
management, hedge funds, private equity funds open up the world of trading automation for
or venture capitals are provided exclusively to everyone. Traditionally, quantitative trading
the wealthiest institutions and individuals. The strategies possess great restriction because
continued depreciation of nations’ sovereign they usually require someone who understands
currencies and an increase of national debts both programming and financial markets. For
around the world have created a very bipolar those who do not have experiences in financial
wealth structure for personal finances. trading via quantitative automation methods,
NetCentric trading ecosystem aims to remove
the barrier to engage in cryptocurrency trading.
1
Introduction to
NetCentric Trading Robot
3 / 28 1. Introduction to NetCentric Trading Robot
What is the
NetCentric Social Trading Platform?
In 2015, professional traders spent over $50 billion purchasing financial market
data, of which $4 billion was spent on professional analytical services and sys-
tems (predictive analytics). By the year 2020, the financial data market is ex-
pected to increase approximately 6 times, and these price costs are only for
professional analytical systems alone.
Fully Automated
Modularized
Intelligent Trading Robot
NetCentric trading robot consists of 8 modules:
Each module may consist of one or more functions depending on user choice. Basic functions are free of charge, while
more advanced functions will cost NET token to activate (explained in section 6). All functions in each module are deliv-
ered ready to use and to assemble. Creating a NetCentric trading robot only requires users to perform “drag”, “drop”,
and “click” actions, allowing every user to create his or her own unique trading robot hassle-free.
7 / 28 2. NetCentric Trading Technology
Cross Exchange
Database
Free 100NET/Week
Segment Social
Crypto Blockchain Emotional
Payment Intelligence
Filters
Bayesian 50NET/Month
Decision Decison Maker
Making
Back Test
Testing
Module
AI Risk
Position Manager 10NET/Month
Control
50NET/Month 5NET/Month
VWAP
Order Smart Router Algorithmic
Execution Execution
Automated Order
Report Execution
Running this advanced trading robot requires NET tokens. Users may also rent out their bot at a NET token price of
Insufficient NET balance will trigger a pause for robot their desire. Robot rent will be collected on a weekly basis.
computation and new order submission. The robot will Users of the bot may also tip and rate it after each week’s
shut down when all opening trading positions are closed. performance.
3
3. Decentralized Wealth Management 10 / 28
Decentralized
Wealth Management
Robot Statistics
Wealth management is a concept of investment variety of trading robots that deliver all types of
advisory which incorporates financial planning, investment strategies. Subscribing to a robot
portfolio management, risk management and equipped with event-driven strategy is equiva-
many other financial services. Currently, the pri- lent to investing in an event-driven theme hedge
vate wealth management industry is dominated fund. By hiring a passive trading robot which
by investment banks, funds, and wealth manage- creates a crypto based portfolio to hold, the user
ment companies. In other words, wealth is man- is investing in a mutual-fund-type product. Se-
aged by centralized institutions subject to censor- lecting multiple trading robots of different in-
ship coercion risk. In addition, it also requires a vestment styles equates to creating a personal
strong relationship between investors and institu- investing platform using fund of funds (FoF) for-
tions, which may not always be attainable for the mat.
average person.
NetCentric transforms wealth management into a
The unique features of blockchain significantly decentralized service to each user. NetCentric ac-
reduce the cost to build such trust through smart counts are private, customized, automated, quan-
contract. NetCentric seeks to build a decentral- titative, and intelligent wealth managers.
ized wealth management infrastructure with a
4
11 / 28 4. Ecosystem of NetCentric
Ecosystem of NetCentric
Risk Manager
Financial Analyst
Trader
Fund Manager Robot Designer
Financial Engineer
Accountant
Financial Advisor
Portfolio Manager Subscriber
Developer
Trader
NetCentric is developing a decentralized and au- ment by decentralizing and simplifying the in-
tonomous investment ecosystem. In comparison vestment and trading processes.
to a traditional wealth management fund, the
NetCentric ecosystem simplifies financial invest- In addition, NetCentric lowers the bar on cost
ment roles into trading robot designers, traders, and time commitment for individual investors to
and subscribers. NetCentric aims to improve the experiment with hedge fund and mutual fund ser-
transparency and efficiency of wealth manage- vices in the crypto market.
4. Ecosystem of NetCentric 12 / 28
Peer-to-Peer
Trading Robot Marketplace
NetCentric’s peer-to-peer trading robot marketplace allows robot designers to collect NET token from their robot sub-
scribers. Below is an example (with all randomly generated figures) of trading robot subscription. A bot designer devel-
oped 5 trading robots. His total revenue is 9,389.53 NETs per month from 3 subscribers. A commission of 10% will be
collected by NetCentric. The bot designer earns a net income of 8,450.57 NETs per month.
150
NET/Day
100
NET/Week Robot
Commission(10%)
938.95 Subscriber
NET/Month
9,389.53 50
NET/Month NET/Day
5,000
NET/Year
Robot
Subscriber
The robot marketplace can be understood as ing investment to everyone, from trading gurus
crowd-sourced quantitative trading. By inspiring to crypto rookies, as anyone can assemble, use,
everyone to participate in the development of and rent trading robots on the NetCentric plat-
trading strategies, NetCentric intends to bring the form.
unlimited and democratized possibilities of trad-
13 / 28 4. Ecosystem of NetCentric
Interchangeability in
Social Trading Marketplace
The society of robot trading, which includes de- titative trading models work and understanding
signers, subscribers, traders, and trader follow- what goes into automated intelligent trading,
ers, is the most valuable property of this platform. NetCentric allows users to carry multiple roles at
By removing the obstacles of learning how quan- the same time. (See graph below)
150
NET/Day 8,000
NET/Month
100
NET/Week Trader
Commission(10%)
2,400 Followers
NET/Month
50 9,389.53 24000 8,000
NET/Day NET/Month NET/Month NET/Month
35 Trader Trader
NET/Day Followers
12,210.47
NET/Month 8,000
NET/Month
5,000
NET/Year
Trader
Followers
5
5. Smart Contract 14 / 28
Smart Contract
Start
Trader/Designer Subscriber
Account NET paid Account
Agree
False True NET < Fee
True
True
Robot Manual
Training Stop True
Cancel
To maintain the NetCentric ecosystem, all bot pay for the subscription, investable balance is be-
subscriptions that include NET token transac- low a threshold, or manual cancellation occurs,
tions will be executed by smart contracts. The the robot will close all the opening positions and
rules will be written in blockchain between trad- stop trading.
er, designer, and subscriber. Similar to the quan-
titative trading procedures, the execution of The implementation of smart contracts facilitates
smart contract is also automated and immutable. decentralized financial trading services by ensur-
ing counterparty authenticity. Since each party’s
A standard procedure starts from the trader/de- credit history and performance are automatically
signer signing on the subscription agreement. recorded and immutable, users no longer need to
Then the trading robot will be launched when a worry about dishonest participants. In addition,
NET token payment from the subscriber is con- automated conditional programming execution
firmed. The smart contract will dynamically allows and ensures anonymous and faithful exe-
check the subscriber’s NET balance. If the sub- cution of the subscription contract.
scriber’s NET balance becomes insufficient to
6
15 / 28
NET Tokens
6. NET Tokens 16 / 28
NET Tokens
Definition and Applications
By releasing NET tokens, NetCentric offers all participants (crypto investors, traders, and developers) a chance to be-
come the creators to a decentralized investment ecosystem and the pioneers of an revolutionary wealth management
system.
NET tokens are utility tokens which can be used NET token’s valuation will partially depend on
to purchase upgrade function parts for trading ro- trading robot price, which is determined by bot
bots, subscription services from advanced trad- demand and supply. In other words, trading robot
ing robots, and trading signals from various trad- designers and investors are key factors that affect
ing robot creators. For bots with limited the NET token valuation. NET tokens will also
management cap, NET token holders with the be listed on cryptocurrency exchanges, giving
higher amount of NetPower will have priority of users complete freedom to open trading and ac-
access (NetPower System is explained in page cess to the latest trading modules.
17).
17 / 28 6. NET Tokens
NetPower System
Community contribution plays a significant role Note that NetPower are non-transferable and
in the success of today’s blockchain projects. non-divisible among accounts and cannot be
NetCentric values community members with traded on cryptocurrency exchanges. However,
great commitments and contributions to the eco- users with higher NetPower will have superior
system. With the five-level NetPower System, access to creating and renting more advanced
users will experience superior platform features bots and be rewarded with more NET tokens.
as they level up from Level 1 to Level 5 accord-
ing to their contribution and reputation scores on
the platform.
Coefficient of Referrals
When the new user levels up, additional NetPower will be reward to the referee.
NetPower score is recalculated on a weekly basis. System will automatically record user’s daily av-
erage power score for more accurate results.
18 / 28
7
NetCentric Featured
Trading Strategies
19 / 28 7. NetCentric Featured Trading Strategies
Stock Market Network of S&P 500 in 2007 (Left) and 2008 (Right)
Hedging Network (HN) is a hedging strategy that longs cryptos in the long network while shorting
those in others. By analyzing the structures and fluctuation of long & short networks dynamically,
NetCentric will be able to capture the co-movement features among multiple cryptocurrencies. Usu-
ally, HN trades around 5~20 cryptocurrencies on a daily basis.
Classical
Ave. Price Increment Mechanical
Modeling
Stock Data
Direction V
Prediction
V
e
In the crypto market, NISCM mainly focuses on The implementation of NISCM could be classi-
news and social media user sentiment. SFNAS is fied into long-only, short-only, or long-short rela-
a featured text mining tool developed by Net- tive value strategies. It could be either a crypto-
Centric. It will transfer textual data into quantita- currency filter or a quantitative trading strategy.
tive scores. A negative score indicates negative In many cases, positive sentiment emotions do
attitude of the investors while a positive value not always translate into gains in price. Positive
represents the opposite. The score, price and vol- sentiment could produce the opposite effects
ume are modeled into velocity, mass and acceler- when the price level is already high. Modeling an
ation of an object. Through mimicking the mo- asset as a flying object helps to interpret such
tion of force from SFNAS, NetCentric models phenomenon. In this methodology, NISCM pro-
are capable of predicting the price movement of vides interpretation of complicated price-event
the target cryptocurrencies. Furthermore, NIS- scenarios which can, therefore, improve the ac-
CM is built upon classical Newtonian mechanics curacy of price predictions.
so that the “energy” of an event is interpreted as
the duration of its impact. The higher the energy
level is outputted, the longer the event will affect
prices of the target cryptocurrencies.
21 / 28 7. NetCentric Featured Trading Strategies
1200
1129 1140
1000
800
754
600 582
400
200
55
0
20000 50000 188595 215260 274280 295000
Time Cost for Crypto Network Generation (CPU Intel i7 3.4 GHz,12 GB memory)
PCNC is a tool for monitoring crypto transactions on different blockchains. By constructing the trans-
action networks, more information will be available to improve the accuracy and profitability of in-
vestment decisions.
By minimizing systemic risk, the performance is improved using Harry Markowitz’s modern portfo-
lio theory. See graph below:
7. NetCentric Featured Trading Strategies 22 / 28
The record has combined performances of three robots. Part of the trading records is listed as below:
Another robot trading on crypto-fiat pairs gained 90.86% on ETH/USD pair in the most recent 2000 hours (2017/12/20-
2018/03/22) while ETH/USD dropped -23.38%. The robot is built on fractal theory and other technical indicators.
8
23 / 28 8. Team
Team
Jing Huang
London School of Economics & Political Science, MS in Informatics
SOAS, University of London, MS in Management
Janlent, CEO
Youle.com, COO
COFCO Shanghai, Assistant General Manager
Brewin Dolphin Securities Ltd, Chief Representative of China
Project Experience:
Large-scale Mortgage Portfolio Risk Management
Network Portfolio Theory
Quantum Trading Strategies
ACTUS (Algorithmic Contract Type Unified Standards)
9
9. Advisor 24 / 28
Advisors
Elie Galam
Eastmore Group, Chief Investment Officer
Advisor to Bancor, Legolas Exchange, and Gimli
Panorama Partner, Chief Investment Officer
Two Sigma, Portfolio Manager
Harvard University, Master’s in Applied Mathematics
Ecole Centrale Paris, Master’s in Engineering
Epson Lab, Researcher
Pierre Maarek
Exane, Head of Equity Derivatives Sales Trading
Advisor to Shivom, Fusion, Crypterium, Legolas, Kinguin, Opporty.
com, Protos Cryptocurrency Asset Management
IXIS Securities, Pan European Equity Sales
JP Morgan Chase, Risk Management IR Derivative Analyst
EDHEC Business School, Master’s in Finance
Tilburg University, Master’s in Finance
Advisors
Jun Liu
LightInTheBox Holding Co, Co-Founder
Joyo.com (Acquired by Amazon in 2004),Vice President
Zhejiang Donfanghaina, Chairman
Tongji University, Master of Business Administration
Cheung Kong Graduate School of Business, Master of Business Ad-
ministration
Fusion Capital, Co-Founder (Portfolio companies include: Newton,
DCC, Egretia, Proton, Carblock, Popchain, and Dfinity
Dinghe Hu
Goldstate Securities Co., Executive Vice President
Graduate School of the People’s Bank of China, Ph.D Mentor
China Economic and Social Council, Council Member
Lifan Group, Chairman
Chongqing Chamber of Commerce, Chairman
David Zou
Aizhi Information Technology, Chairman & Founder
Harvard University, JF Kennedy School of Government, Edward
S. Mason Fellow
Fiat-Chrysler Group, Director of Government Affairs an Corpo-
rate Events (Asia-Pacific Region)
Harvard University, MPA
Cambridge University, M.Phil
9. Advisor 26 / 28
Advisors
Akatsuki Ryu
Co-founder of Avianbury
8 years software and hardware engineering development experience
Global Hacking Contest Rankings (Blockchain Technology Intro-
duced in StoraEnso Hacking Game Solution)
27 / 28
The sale of NET tokens constitutes the sale of a business and financial performance, the perfor-
legal software product under British Virgin Is- mance, and accuracy of NetCentric trading ro-
lands law. This product sale is conducted by Net- bots, and often contain words such as ‘expect’,
Centric LLC (British Virgin Islands), a BVI Lim- ‘anticipate’, ‘intend’, ‘plan’, ‘believe’, ‘seek’,
ited Liability Company, operating under British ‘see’, ‘will’, ‘would’, ‘estimate’, ‘forecast’ or
Virgin Islands law. It is the responsibility of each ‘target’. Such forward-looking statements by
potential purchaser of net tokens to determine if their nature address matters that are, to different
the purchaser can legally purchase NET tokens in degrees, uncertain. We cannot guarantee that any
the purchaser’s jurisdiction and whether the pur- forward-looking statements, backtests or experi-
chaser can then resell the net tokens to another ments made by us or expected results of opera-
purchaser in any given jurisdiction. tion of NetCentric trading robots will correlate
with the actual future facts or results.
All potential risks can be assessed regarding to-
ken sale. For the convenience of our users, NetCentric
white paper, website and other related documents
Our white paper may contain ‘forward-looking are available in a number of languages. In the
statements’ - that is, statements related to future, event there is any conflict between the English
not past, events. In this context, forward-looking language version and a foreign language version,
statements often address our expected future the English language version shall govern.
Crypto Trading Robot Ecosystem
WHITE PAPER