LINK/ETH Growth Alpha

LEGA

How does it work?

The LINK/ETH Growth Alpha set is a semi-systematic strategy that combines the use of technical indicators including bollinger bands and RSI to to generate a signal when the model considers LINK to be overpriced or underpriced versus ETH. The strategy relies fundamentally on the systematic signals from the model.

LINK exhibits higher volatility than ETH and provides a good asset to trade against in search of increasing ETH holdings. While still positively correlated, the correlation between the pair is relatively low compared to the larger cap cryptocurrencies.

The strategy also includes a discretionary element. This allows position sizing to be decided when signals are generated. The allocation will be decided based on the order and type of the signals generated in addition to assessing key technical levels. Positions are likely to be gradually allocated from one asset to another, however, faster allocations are permitted depending on the signals generated and manager discretion. The manager is permitted to add to the positions as neccessary, providing the fundmental signals from the model are adhered to.

The ERC20 token 'LEGA' is associated with the LINK/ETH Growth Alpha strategy. View on Etherscan

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Diversifcation

Our investment strategies provide investors exposure to highly liquid digital assets that are uncorrelated across a diverse universe of global markets. They provide uncorrelated returns to traditional and alternative asset classes. The highly liquid markets in which we trade enable scalability, operational efficiency and daily liquidity.

performance

Live on-chain performance is verifiable and immutable. In the first few weeks of live trading on Token Sets the ETA sets have proved to be some of the best performing strategies to date.

We apply a rules-based systematic approach to trade execution, ensuring consistency and discipline, while reducing behavioural bias and operational risk.  

risk management

Our strategies are optimised for high risk-adjusted returns. Capital preservation is a priority when developing wealth- building strategies. The adaptable nature of the model allows trading parameters to automatically adjust based on market dynamics. 

Institutional knowledge

Our team has extensive experience across blockchain start-ups, digital assets, and tier 1 global investment banks. We believe a thorough understanding of the core technology is essential in order to successfully navigate the world of digital assets. Our experience spans global institutions such as Bank of America Merrill Lynch, Citigroup and Quality Capital Management.

Performance data
Back Test Performance Data

Full Back Test Results: Back Test Performance

Key findings from the back test:

  • 13,675% gain over ETH for the total back test period. 1 ETH would have resulted in 136 ETH in 2.5 years.

  • At least 22 trades. In reality it is likely to be far more than this due to the scaling in and out of positions.

  • 31% drawdown in ETH terms

IMPORTANT: Back-tested performance does not guarantee similar future performance. Future performance may be worse than the back test suggests. 

Risks

This strategy will be exposed to cryptocurrency prices 100% of the time. This means if cryptocurrency prices fall, the sets USD value will also fall. There is no hedge against USD value in this set, unlike our ETAS or ETA sets. The goal of the set is to accumulate more ETH regardless of the USD value of ETH.

Are you risking your own capital?

Yes. Each an every strategy we develop we personally invest our own capital into. We always have ‘skin in the game’ so to speak. We personally allocate capital to all of our strategies so that we can share the gains and/or losses with you all. The amount of capital we have invested can be seen on the set page here

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