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N-BEATS Perceiver: A Novel Approach for Robust Cryptocurrency Portfolio Forecasting

Attilio Sbrana, Paulo André Lima de Castro

2023Computational Economics11 citationsDOIOpen Access PDF

Abstract

In this paper, we propose a novel approach for forecasting cryptocurrency portfolios, harnessing modified versions of the N-BEATS deep learning architecture, integrated with convolutional network layers, Transformer mechanisms, and the Mish activation function. Our thorough evaluation, featuring an extensive sample size exceeding 4 million portfolio test samples, shows these variations outperforming traditional and other deep learning forecasting methods across various metrics. Particularly noteworthy is our N-BEATS Perceiver model, a Transformer-based variation, which not only delivers superior forecast accuracy but also exhibits a robust risk profile with less downside. Furthermore, the model performs exceptionally well under the TOPSIS method across a broad spectrum of portfolio evaluation parameters, making it a valuable asset for both portfolio selection and risk management in the dynamic cryptocurrency market.

Topics & Concepts

CryptocurrencyPortfolioComputer scienceDownside riskArtificial intelligenceEconometricsPortfolio optimizationTOPSISTransformerAsset allocationDeep learningMachine learningEconomicsFinancial economicsOperations researchMathematicsEngineeringElectrical engineeringComputer securityVoltageBlockchain Technology Applications and SecurityStock Market Forecasting MethodsMarket Dynamics and Volatility