Optimizing Bitcoin Anomaly Detection

Log in to collect

Onsite backtest IDE

Quant Buffet native backtest IDE

Edit and run Quant Buffet Python for Optimizing Bitcoin Anomaly Detection in the browser. Results update live with equity, drawdown, and metrics charts. Allowed: backtest.data, backtest.engine, backtest.metrics, numpy, pandas. Define ASSETS and make_on_day(prices). Shortcut: Ctrl+Enter. API docs →

Ready — edit code, then Run backtest.
IDE · 36 lines
Quant Buffet syntax cheat sheet (copy / insert)

Paste these fragments into the editor. The sandbox rejects QuantConnect, os, and network libraries.

Required imports
Only these libraries are allowed in the sandbox.
from __future__ import annotations

import numpy as np
import pandas as pd

from backtest.data import load_daily_prices
from backtest.engine import EngineConfig, PortfolioEngine
from backtest.metrics import compute_metrics
ASSETS list (whitelisted ETFs)
Module-level list. Tickers must be in the Quant Buffet whitelist.
ASSETS = ["SPY", "QQQ", "TLT", "GLD", "BIL"]
make_on_day contract
Must return (on_day, ready). on_day calls engine.set_target_weights.
def make_on_day(prices: pd.DataFrame):
    cols = [c for c in ASSETS if c in prices.columns]
    sma = prices[cols].rolling(200, min_periods=200).mean()
    state = {"last": None}

    def on_day(engine: PortfolioEngine, dt: pd.Timestamp) -> None:
        if sma.loc[dt].isna().all():
            return
        key = (dt.year, dt.month)
        if state["last"] == key:
            return
        state["last"] = key
        long = [
            s for s in cols
            if pd.notna(prices.at[dt, s]) and pd.notna(sma.at[dt, s])
            and prices.at[dt, s] > sma.at[dt, s]
        ]
        weights = {} if not long else {s: 1.0 / len(long) for s in long}
        engine.set_target_weights(dt, weights)

    ready = sma.dropna(how="all").index.min() if sma.notna().any().any() else None
    return on_day, ready
Set target weights
Weights should sum to about 1.0. Empty dict = 100% cash.
engine.set_target_weights(dt, {"SPY": 0.60, "BIL": 0.40})

Live backtest performance

CAGR
65.79%
Sharpe
1.14
Max DD
-83.26%
Vol
60.70%
Sortino
1.84
Beta
0.44

Showing saved draft baseline until you re-run.

Equity curve (indexed = 100)

Accent = strategy · dashed grey = buy-and-hold benchmark

2015-052026-084749488
Drawdown
Worst -72.0%-72%
Metrics bar chart
CAGRSharpeSortinoVol|DD|Grey = baseline · Accent = live run
Monthly returns
2023-072026-08 · last 24 months

Export to your platform

Transform Quant Buffet lab code (ASSETS + make_on_day / PortfolioEngine) into native classes for a third-party IDE — then copy and paste.

Run in: QuantConnect Cloud or LEAN CLI · QCAlgorithm with Equity securities and monthly rebalance.

Detected pattern: Absolute momentumAssets: SPY, TLT, GLD, BIL
# Generated from Quant Buffet → QuantConnect LEAN
# Strategy: Optimizing Bitcoin Anomaly Detection
# Detected pattern: Absolute momentum
# Source uses Quant Buffet lab APIs (ASSETS + make_on_day / PortfolioEngine).
# Review fees, data, and risk before live trading — educational export only.

from AlgorithmImports import *


class QuantBuffetExport(QCAlgorithm):
    def Initialize(self):
        self.SetStartDate(2010, 1, 1)
        self.SetCash(100000)
        tickers = ["SPY", "TLT", "GLD", "BIL"]
        self.symbols = []
        for t in tickers:
            if "-" in t:  # crypto proxy e.g. BTC-USD
                self.symbols.append(self.AddCrypto(t.replace("-USD", ""), Resolution.Daily).Symbol)
            else:
                self.symbols.append(self.AddEquity(t, Resolution.Daily).Symbol)
        self.Schedule.On(
            self.DateRules.MonthStart(self.symbols[0]),
            self.TimeRules.AfterMarketOpen(self.symbols[0], 30),
            self.Rebalance,
        )
        # Logic: Long assets with positive 252-day return; equal-weight; monthly.

    def Rebalance(self):
        # Pattern: abs_momentum — Long assets with positive 252-day return; equal-weight; monthly.
        # Default: equal-weight. Port your make_on_day weights here via SetHoldings.
        w = 1.0 / len(self.symbols) if self.symbols else 0.0
        for symbol in self.symbols:
            self.SetHoldings(symbol, w)

Exported code uses the platform’s native classes and libraries. Install dependencies in your third-party IDE, then run. Validate before live trading.

Academic paper

Teaser

Hold assets with positive trailing return; equal-weight the winners. Universe: BTC-USD, ETH-USD. Parameters: lookback=252; rebalance=monthly. Rebalanced on the engine's template schedule with 5 bps commission and 2 bps slippage. Because the paper's primary signal (ML, sentiment, or proprietary data) is not available in our public ETF engine, this draft uses a liquid ETF rule that preserves the paper's economic theme rather than a bit-exact replication.

Strategy in a nutshell

This paper investigates the efficiency of feature selection methods in the context of enhancing unsupervised anomaly detection in cryptocurrency markets. By taking into account historical Bitcoin data from 2013 to 2024, we make use of a process involving data normalization, feature importance selection, and model evaluation to do research. We preprocess several features comprising price returns, trading volume, and market capitalization and also generate technical indicators such as volatility and momentum metrics. We perform feature importance by two methods: Principal Component Analysis (PCA) and Random Forest feature importance that are mutually supportive. Later on, we measure the detection performance of Isolation Forest and Local Outlier Factor (LOF) algorithms for the different feat

Economic rationale

Positive time-series momentum indicates a favorable trend state; holding only assets with positive trailing returns tilts toward that premium. Related evidence from “Optimizing Bitcoin Anomaly Detection: A Comparative Analysis of Feature Selection Techniques”: This paper investigates the efficiency of feature selection methods in the context of enhancing unsupervised anomaly detection in cryptocurrency markets. By taking into account historical Bitcoin data from 2013 to 2024, we make use of a process involving data normalization, feature importance selection, and model evaluation to do research. We preprocess several features comprising price returns, trading volume, and market capitalization and also generate technical indicators such as volatility a

Backtest performance

Annualised return65.79%
Volatility60.70%
Beta0.44
Sharpe ratio1.14
Sortino ratio1.84
Maximum drawdown-83.26%