One week ago I’ve been contacted by the CryptoForecast team that offered me a free account with the goal of writing a review of their service. These are my thoughts about it.
CryptoForecast in pills
CryptoForecast is a web-based service which offers access to cryptocurrencies price forecasts (previsions of the future price) estimated by an algorithm called PILLAR.
I said cryptocurrencies (plural) because the algorithm will potentially work with also currencies different from Bitcoin, even if at the moment Bitcoin is the only available.
There are already other prediction services that uses neural networks and regression, while CryptoForecast uses an algorithmic prediction modeled by the experience of expert traders.
After logging into the service through the browser, the web dashboard appears. There are only few buttons which are able to offer all the functionalities of the PILLAR algorithm. The flow works as follow:
- The Generate section let you provide a time-frame (from date to date), a time frame (1 hour, 4 hours or 1 day), a currency (Bitcoin only, a.t.m.) and a market to analyze (Bitstamp at the moment).
- After setting the prediction parameters, you can click the “Generate” button, that will query the PILLAR algorithm to generate the forecast.
- The user is redirected in the Chart section, that displays the generated chart with the price forecast.
Even if the web interface is still a work in progress, it is already easy-to-use and contains all the necessary tools.
After familiarizing with the interface, I decided to try the forecast engine for few days comparing with the real value of Bitcoin in the forecasted period. I generated different charts, with different periods and time-frames.
Results are quite impressive, even if it doesn’t estimate always the right price, it surely predict very well the price trends in normal conditions. I wrote normal condition because an algorithm can’t detect easily price crashes due to fork-fear or ETF rejections (these are only examples).
For completeness, I asked the CF devs why the price doesn’t retarget with the real price, they said that the algorithm is still in WIP phase, and in the production version it will adjust.
Price and ICO
The team developed the CryptoForecast service without initial funding. To raise funds for the development effort, marketing and general expenses, they will release a token called CFT (cryptoforecast token, an Omni token) throught an ICO. The ICO will start in few weeks (the precise date is not yet available).
The CFT token will be the only way to pay for the CryptoForecast services.
The team will distribute 50.000.000 total CFT during the ICO period, for further informations you can read the official ICO page.
Regarding the price, the service will cost about 29.90$/month with discounts for 3 months (12%), 6 months (17%) and 1 year (25%).
In conclusion, the service seems to work very well, it’s easy-to-use for everyone and it will be sold for a fair price. Its simplicity make it suitable for both professional and amateur traders.
As mentioned before, the service is still work-in-progress, so we can expect many improvements to the algorithm and to the web interface in the public release.
Don’t miss to try ethereumwisdom.com and our android app (AD free android app).