Some of the young minds from the Indian Institute of Technology (IIT) started off their journey to make advanced trading and investing accessible to everyone. The mission led to the start of Mudrex - a global algorithm based crypto investment platform. Moreover, cryptocurrency markets remain open round the clock throughout the year. That makes it humanly impossible to constantly track this market and capitalize on the good entry and exit points. This is where Mudrex steps in. 

To understand how artificial intelligence and machine learning is used at Mudrex to track millions of data points simultaneously, we caught up with Edul Patel, CEO and Co-founder, Mudrex. An alumnus of IIT Bombay, Edul has experience of more than a decade now. “Rule-based systems definitely provide an edge in cryptocurrency trading. We understand that the volatility of the crypto market could be daunting at times. Unless someone is vigilant of the market 24*7, there is little that can be done to make profitable trades,” said Edul. 

How AI creeps in for crypto  

Two of Mudrex's products, Algos and Mudrex Mints, use rule-based systems to trade and invest in the crypto market.  

• Mudrex Algos attempts to take away this pain point by automating trades and executing them without any human intervention. However, that's not all! These algorithms follow set parameters to actively manage risk and reduce the drawdown.   
• Mudrex Mints are rule-based systems analogous to quant funds. This ML-based product trades across the top-performing algos dealing in the top cryptos. Mints attempt to generate steady returns while reducing the volatility associated with the crypto market. 

Additionally, explaining the custom trading algorithms deployed on the Mudrex platform, Edul said, “Our algorithms are formed by multiple parameters of price analysis and technical analysis. These systems constantly track these parameters and execute strategies whenever certain conditions are fulfilled. Our algorithms ensure that the drawdown is kept low while keeping the Sharpe ratio higher. These are all key elements in terms of trading that directly impact the returns.” 

While the Sharpe ratio helps investors understand the return of an investment compared to its risk, a drawdown refers to how much an investment or trading account is down from the peak before it recovers back to the peak.  

Mudrex on safety and privacy 

Being in the crypto space for over three and half years, the company understands the importance of security and put it at the core of Mudrex.   

• First and foremost, the team works closely with global exchanges with a good track record. The platform security is AWS ++. On top of that, have integrated multiple other measures such as whitelisting of IPs, 2FA setup, password reset at frequent intervals as well.  
• Secondly, from a security perspective, use the best of services available via Amazon AWS to make sure that all tokens and data of the users are securely stored and no one in the company has access to it. There are multiple sets of security practices that the company has adopted. For example, all data that they store is AES 256 encrypted, which is the gold standard of encryption, used to store user information. On the platform, the team conducts multiple security checks on an individual level to strengthen the system further.  

Mudrex does not store a user's private keys. Moreover, whenever users connect their exchange accounts Mudrex does not get withdrawal rights of users' funds. 

The road ahead 

AI is bound to play a massive role in the cryptocurrency trading and investing domain. Currently, some AI-based algorithms can track the most talked-about cryptos across different social media platforms, and take trades based on the sentiment towards these cryptos. With improvement in technology, the capabilities of AI in trading and investing would increase manifold.   

“Today's AI can mimic the strategies of some of today's best traders. However, the skills of these traders have been polished over years trading in different market conditions. These traders can improvise their trading skills to deal with these different market conditions. Most of today's AI might have a hard time achieving this level of agility,” concluded Edul. 

Not just crypto players but several institutions such as hedge funds, portfolio management services are using AI to make unbiased investing across different financial markets. Most of the top tier investment banking firms are using AI to trade bond markets, FX markets and obviously crypto as well. The most significant advantage of AI over human traders is that AI can be used to massively scale operations. The same won’t be true for any human trader.