The basics
FinRev is the world’s best trend following system for
cryptocurrencies.
Whilst trend following has drastically outperformed stock markets, it performs even better on
cryptocurrency markets. Our drastic outperformance is explainable because newer markets have
more inefficiency and naive participants.
Our approach is to trade altcoins both long and short using a best practice volatility targeted,
continuous signal approach.
The reason
Cryptocurrencies can appreciate further and faster than any
other asset class. And they can also crash spectacularly. Our approach is to make profits in
both up and down markets rather than a buy and hold approach which might take many years to
realize profits. Fortunately, there is a strategy from the 300 billion dollar CTA industry
designed to do exactly this. When we take standard trend following algorithms which have made
billions in traditional markets and apply them to crypto they perform 3x better.
FinRev utilizes "Volatility Targeting" to manage investments, where a predetermined
annual account fluctuation level guides decision-making, balancing risk and return. This
strategy helps smooth out crypto returns and dynamically adjusts position sizes daily according
to volatility forecasts. Trades are selected by blending forecasts from 6 subsystems, with each
weighted based on its performance. This process determines whether to take buy or short
positions for coins based on the resulting positive or negative forecast.
We have no fundamental opinions about the merits of any individual coin. All trading
decisions are made algorithmically, eliminating human error. We take positions in every crypto
coin which starts to rise in value. And simultaneously take short positions in every crypto coin
which starts to fall. By simultaneously trading over 100 coins in a long-short portfolio we are
insulated from broader market trends while providing extraordinary returns. By delivering
astonishing returns with tiny drawdowns, our long term compounded growth rate is unmatched in
the industry.
