More than a dozen teams from the departments of Mathematics and Computer Science at the Universities of Oxford and Cambridge are competing to create algorithms for trading cryptocurrencies on the major exchanges Coinbase Pro and FTX.
According to the announcement on November 25, 15 teams will be judged based on their trading strategies, technical design of algorithms and their overall return. The competition started on November 16 and will run until December 16.
Strategies used include arbitrage, machine learning, neural network predictions, and investing in trends based on time series prediction.
APEX: E3 is the main sponsor of the competition, with an organizational analysis firm giving each participant access to APIs, mentorship, technical support, and unannounced seed funding. Only the winning team retains its original capital and profits.
Cryptocurrency exchange Coinbase, FTX, SIX Digital Exchange and LMAX Digital, as well as Ethereum software developer ConsenSys have also joined forces to support the competition.
Quentin Stafford Fraser, of the University of Cambridge’s Department of Computer Science, described the tournament as a risk-free opportunity for students to test their algorithms in real markets:
“APEX: E3 has created a fun and safe way for students to learn about the [algorithmic commerce] industry and use their creativity and expertise to solve specific problems in the field.”
E3 CEO Othman Khan said the company plans to make the tournament an annual event, adding that he hopes to increase the number of participating universities by 2021.