Algorithms and Methods Used
1. ANFIS (Adaptive Neuro-Fuzzy Inference System)
Description:
ANFIS combines the learning capabilities of neural networks with the human-like reasoning
style of fuzzy logic. It?s used for modeling complex nonlinear functions, especially where expert
knowledge in the form of fuzzy rules is available.
Key Characteristics:
- Hybrid learning (gradient descent + least squares)
- Fuzzy if-then rules
- Used here for up/down movement prediction of Ethereum
2. Kalman Filter
Description:
The Kalman Filter is a recursive algorithm used for estimating the state of a dynamic system
from a series of incomplete and noisy measurements.
Use Case:
- Filtering spikes and noise from HCSR04 ultrasonic sensor readings
- Applied to sensor data to improve accuracy and stability
3. Flood Fill Algorithm
Description:
A classic algorithm used for area filling and maze solving. It works by iteratively spreading from
a source point to all reachable neighboring cells.
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Algorithms and Methods Used
Application:
- Used in the maze-solving robot to determine shortest path and explore the maze.
4. Bayesian Inference (for Cricket Match Prediction)
Description:
Bayesian methods use probabilities for both hypotheses and data. It updates beliefs as more
evidence or information becomes available.
Application:
- Used in the cricket sports betting bot
- Helps calculate posterior probability of a match outcome given prior probabilities and match
data
5. Kelly Criterion
Description:
A formula used to determine the optimal size of a series of bets to maximize logarithmic wealth
over time.
Formula:
f* = (bp - q)/b
where:
- f* is the fraction of the bankroll to bet
- b is the odds received on the bet (b to 1)
- p is the probability of winning
- q = 1 - p is the probability of losing
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Algorithms and Methods Used
6. Log Returns
Description:
Logarithmic returns are preferred in finance due to their time-additive properties.
Formula:
log_return = log(Close_t / Close_{t-1})
7. Momentum
Description:
Measures the rate of rise or fall in stock prices.
Formula:
Momentum = Close_t - Close_{t-n}
8. Liquidity
Description:
Measures market stability through price movement versus volume.
Formula:
Liquidity = |Return| / Volume
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