Our new TM grade takes what the quant grade did and improves it in a few different ways.
The current quant grade takes 54 different quantitative performance metrics such as Sharpe, Sortino, and max drawdown, to come up with a score for cryptocurrencies.
The problem with this is that these metrics only evaluate an asset based on its past performance.
While this is useful for gauging past performance and the riskiness of an investment, we felt our grade could be improved by including more forward looking data points.
We had a backwards looking grade to score tokens based on past risk, now we needed something that would give us insight into the future.
Enter the TA grade.
Our quant team has been working for months to come up with a grade that takes into account technical indicators and volatility indicators to try to predict future price movements.
The TA grade does just this.
Using our machine learning algorithms we have determined the 6 indicators best suited to predict future ROI.
The TA grade is used in combination with the quant grade v2, an updated version of the quant grade that uses the expert analysis of the Token Metrics team instead of our machine learning, to create the TM grade.
This means that the new TM grade takes into account both our genetic algorithm machine learning models and our immense human capital and crypto market insights.
The TM grade is robust and gives us the ability to easily improve it by adding new data points such as on-chain data and sentiment analysis (two things we have plans to add in the future).
In all, the TM grade takes into account 81 different data points.
When it comes to using the grade for your own investing, you can follow a similar strategy to the one you used for the quant grade.
The TM grade will be on a scale of 0 to 100 with 100 being the highest potential ROI prediction possible.
According to our grade legend, a score of 80% or better is considered good.
We typically operate under the rule of thumb that a score of 80 or better is investable in a bull market and 85 or better in a bear market.
You may notice that stablecoins will not have grades, this is because their potential returns are effectively zero.
Another important thing to note about the TM grade is that because of its use of technical indicators, it will only be available on a daily, weekly, and monthly time horizon.
A token with the highest daily, weekly, or monthly TM grade is the token that our models predict will have the highest ROI should you buy it right and hold it for a day, week, or month, respectively.
For longer time horizon investing we will be releasing a grade that uses a combination of our fundamentals and technology (code review) grades as fundamentals are more important the further out we look.
The new TM grade is just one of many innovations we hope to give our customers to help them reach their mission of financial freedom.
We hope this grade generates the returns you've been looking for!
If you have any more questions you can contact our support team at firstname.lastname@example.org.