SharpeEdge
SharpeEdge

Getting an edge in crypto and currency markets.

We're an alternative investment firm specializing in crypto assets and fiat currencies. We deploy systematic strategies based on quantitative modeling and macroeconomic analysis.

Research
Previous reports
Our approach

We aim to generate short to medium term returns for our clients through systematic and scientifically tested investments in the crypto and currency markets.

One of the challenges of investing in cryptocurrencies is the volatility and unpredictability of individual assets' returns. We deal with this issue by:

  • Designing our strategies to take long and short positions across both up and down markets
  • Using a diversified set of strategies and instruments
  • Mixing our crypto exposure with traditional asset classes (forex) to pursue opportunities in other markets during moments of indecision in the broader crypto market
  • Dynamically managing our risk and allocation to avoid large drawdowns

Two Foundational Approaches

We scrutinize every corner of the digital and fiat currency markets to uncover actionable, high probability signals. Our strategies are built upon 2 foundational categories, with hybrids at the intersection of the two:

1

Quantitative Analysis

We employ rigorous quantitative models and advanced algorithms to identify patterns in prices and other datasets (news, macro variables, ...), then profit from them (statistical arbitrage, time series models, technical analysis, NLP, ...).

2

Global Macro

We actively monitor political developments, interest rate policies/expectations, related asset classes (crypto-gold, forex-overnight index swaps, ...), and traditional/alternative data sources to take directional bets and exploit mispricing opportunities.

Investment Lifecycle

Our end-to-end investment cycle is highly systematic, ensuring discipline from initial signal generation to post-trade monitoring. Our holding period is relatively short, ranging from a few minutes to a month.

1

Research

We research and implement multiple strategies covering a broad range of forex and crypto instruments (both vanilla and derivatives) and test them on comprehensive datasets before deployment.

2

Signal Mining

We process data from multiple sources to identify high-probability trading signals. We apply regime filters to certain strategies to make sure they are deployed in the right context (for example, we halt some trend strategies in sideways markets).

3

Portfolio Allocation

Once a signal is validated, our models determine the portfolio weighting based on factors like risk, past returns, correlations to other strategies.

4

Execution

Our execution engine aggregates orders from multiple strategies and optimally executes them to minimize transaction costs.

5

Risk Management

Risk mitigation is embedded into every step of our lifecycle. We continuously monitor position sizing and strategy/portfolio level drawdowns to prevent big losses and protect our investors' capital across all market environments.

Important
information

Disclaimer

This website and its content are for informational purposes only and do not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or investment product. Such an offer or solicitation can only be made to qualified investors through the delivery of a Confidential Private Placement Memorandum (or similar offering document) and strictly in accordance with applicable securities laws.

The information provided on this website is intended solely for Accredited Investors and Qualified Purchasers. It is not directed at, nor intended for distribution to or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

Risk Warning: Alternative investments, including hedge funds, are speculative and involve a high degree of risk. They are illiquid, heavily reliant on the investment manager, and may use leverage, short-selling, or derivatives, which can magnify potential losses. There is no guarantee that the fund will achieve its investment objectives. Investors must be prepared to bear the risk of a total loss of their investment. Past performance is not necessarily indicative of future results.

No Advice: Nothing contained on this website constitutes investment, legal, tax, or other advice, nor is it to be relied upon in making an investment or other decision.

Information Accuracy and Forward-Looking Statements: Certain information contained herein may constitute forward-looking statements. These statements are subject to significant risks and uncertainties, and actual events or results may differ materially. While the information provided is believed to be accurate and reliable at the time of posting, the Fund makes no representations or warranties as to its completeness or accuracy and assumes no obligation to update this information.

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