I am pleased to provide details of the eagerly awaited ETH Trending Alpha Short Term 3.0 (ETAS) strategy on cedefihedge.
We have now brought to cedefihedge our in-house short term trend-following strategy from Alphachain Capital, allowing users to
participate in similar professional institutional trend-following strategies to those we offer to our investors. The strategy for cedefihedge
has been adapted to a long-only unleveraged strategy within the restraints of cedefihedge.
At Alphachain Capital we strongly believe that trend-following strategies are best suited to cryptocurrency markets due to their history of
developing large trends exhibiting momentum over long periods.
There is no other asset class across the globe that develops trends of this size with these levels of returns.
Strategy
ETH Trending Alpha ST 3.0 is a medium term systematic trend following strategy which uses statistical analysis and technical indicators to
identify and exploit short-medium up-trends.
The strategy uses EMAs to identify up-trends with a volatility metric for confirmation. The strategy is optimised for short-medium term
time-frames enabling it to exploit some of the more shorter-medium term trends.
The strategy is long-only, rebalancing into ETH when the strategy identifies an up-trend and rebalancing back to cUSDC when not in the
market (e.g. flat or bear markets). All cash USD balances earn interest via Compound.finance enhancing returns. The medium-term nature
of the strategy results in approximately 5-6 trades per year, each held for an average of 20 days.
The medium term nature of this trend-following strategy allows it to identify some of the key trends that emerge naturally over time with
less choppy rebalancing. It is less likely to get caught in volatile market due to less frequent rebalancing.
The strategy performs best in trending markets and not as well during choppy or sideways markets.
Created by AdamHaeems
I am founder and CEO of Alphachain Capital, a cryptocurrency investment fund created in 2017. I started my trading career at Bank of
America Merrill Lynch in London before moving to a $1bn global macro hedge fund as a cross-asset futures trader. I have a Masters in
Finance from Cambridge University, Judge Business School. At Alphachain Capital we develop quantitative investment strategies using
advanced statistical modelling techniques across large cap cryptocurrency markets. At Alphachain Academy we develop new traders who
go on to manage the firms capital.
