Under the current Heleum version 1, here’s how balloons let your money move:
– The Heleum balloon launches from base currency into a cryptocurrency.
– It waits for the first goal reached to sell high by buying another currency low.
– It does this again and again until it can buy the base currency low, then pops.
– It doesn’t look at long-term averages, just compares current rates with rates at last move.
– It sets goals towards other currencies at launch and adjusts crypto goals whenever it visits fiats.
We’ve made a simple assessment that:
– Cryptocurrencies in GENERAL will rise as an industry over the next 5-10 years, based on a common sense review of the last 5-10 years, with periodic crashes, but reaching new all-time highs for the next few years at least.
– Cryptocurrencies will jump and crash at different times most of the time, and then rise and fall in unison at other times, so they are very volatile, not just toward fiats, but toward each other as well.
– Operating under those assumptions, we made a simple algorithm that operates on the principle that a cryptocurrency will have a short-term rise against any other currency given enough wait time. In other words, whatever crypto you are in will have an absolute rise against at least one other cryptocurrency in our set, or at least one (but probably way more than one) other fiat, EVENTUALLY.
So, here’s an in-depth of how Heleum works:
1. A balloon is primed to launch with a fraction of your available balance, which is determined by your account size, at least two days after any previous balloon priming.
2. Priming means the balloon starts to look at the exchange rates, and it’s looking to launch by moving into the first cryptocurrency that rises at least 1.5% or so. Basically it will launch into the current fastest-rising crypto. Let’s just say it was LTC.
3. Once in crypto, the balloon has a snapshot of its current rates and its goals to move into fiats or other cryptos. It needs to gain at least 5.6% + the Uphold fee (so 7%) against ANY other currency to reach its goal. It monitors the rates from it to ALL other currencies until it reaches at least one of the goals. So LTC is looking for a goal rate in LTCBTC, LTCETH, LTCUSD, LTCEUR, etc., all at the same time, every 2 seconds.
4. Once prices change enough, it reaches a goal, but it doesn’t move yet. It’s waiting for a trailing stop loss of 1.4% of the highest rate reached, so it can ride a continued rise before selling high and buying low. The pullback also indicates that what you are moving into is going UP now compared to the currency you are currently in that you are about to leave. So once the price pulls back more than 1.4% from the highest rate reached, it moves into whatever currency reached the goal and pullback first.
5. The balloon takes another snapshot of rates once it’s jumped into the next currency. If this next currency is a cryptocurrency and this new snapshot reveals a higher rate than the previous snapshot, then the goals are adjusted upward to 7% above the highest rate seen. If the new snapshot of rates reveals a lower rate than the previous snapshot, then the goals are kept unchanged. If this balloon is now in a fiat currency, then the previous goals for cryptocurrencies are deleted and the balloon looks for a cryptocurrency to enter as described in step 2. When the balloon goes from fiat to crypto, it remembers the full history of fiat goals, but crypto goals are reset to 7% above the most recent snapshot of rates. If the new currency is the base currency, it pops. Heleum takes a portion of the gains as a fee. Funds get returned to the available balance. If the balloon was the only balloon or the balloon most recently launched, the funds are immediately primed into a new balloon.
ALL OF THIS IS SUBJECT TO CHANGE. Pretty much all of it will be adjusted and fine-tuned over the next few months as we prep our mobile launch / v2.0. Future versions will likely let advanced users tinker with just about everything. We’re excited for the road ahead. See changes here at our Roadmap.