Proceedings of International Conference on Multidisciplinary Engineering (ICOMDEN)
Vol. 2 (2024): Proceedings of International Conference on Multidisciplinary Engineering (ICOMDEN)

Comparison of Exponentially Weighted Moving Average and Triple Exponential Smoothing Methods for Cryptocurrency Price Forecasting

sukma rizki (Universitas Malikussaleh)
Zarayunizar Zarayunizar (Universitas Malikussaleh)
Said Fadlan Anshari (Universitas Malikussaleh)



Article Info

Publish Date
27 Dec 2024

Abstract

Cryptocurrencies have rapidly become a prominent part of today's information landscape. Bitcoin (BTC), one of the first cryptocurrencies, was introduced by Satoshi Nakamoto, a pseudonym whose true identity remains unknown. Nakamoto is credited with creating the blockchain system that underpins Bitcoin. As technology has advanced, cryptocurrencies have evolved into digital currencies that can be used as a medium of exchange. This has garnered significant attention from investors, particularly due to the substantial fluctuations in cryptocurrency values over time. Therefore, choosing the right method for making investment decisions is crucial. This research compares two leading methods for cryptocurrency price forecasting: Exponentially Weighted Moving Average (EWMA) and Triple Exponential Smoothing (TES). Each method has its own strengths and weaknesses in forecasting. In this study, EWMA achieved an average MAPE score of 54% and an MSE of 1818, while TES recorded an average MAPE of 45% and an MSE of 11408. The results indicate that TES outperforms EWMA by a margin of approximately 10%. To assess the methods' effectiveness, evaluation metrics were applied, categorizing performance as excellent, good, feasible, or not feasible.

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Journal Info

Abbrev

icomden

Publisher

Subject

Chemical Engineering, Chemistry & Bioengineering Civil Engineering, Building, Construction & Architecture Computer Science & IT Electrical & Electronics Engineering Engineering Industrial & Manufacturing Engineering

Description

The "Proceedings of International Conference on Multidisciplinary Engineering (ICOMDEN)" is a scientific publication that compiles innovative works from researchers, academics, and practitioners in the field of multidisciplinary engineering. This proceeding serves as a platform to present ...