The Iconic Quantitative Solutions Team deploys various actively-managed algorithmic trading strategies that enable investors to earn target returns in the global crypto markets. Read on to learn how the Iconic Alpha Quant Solutions team can offer customized crypto funds with annual target returns.

Actively Managed Crypto Trading Strategies: How Iconic Quantitative Solutions Generates Returns

investors with a range of robust algorithmic trading strategies, enabling them to provide steady and targeted risk-adjusted returns.

Iconic’s algorithmic asset management team utilizes a combination of trend-following, mean-reverting, and relative value strategies to take directional or relative bets in the crypto markets to generate pure performance (Absolute Return) or to outperform Bitcoin (Smart Beta).

Let’s look at the two approaches the Quant Solutions Team uses to generate returns for investors: Absolute Return and Smart Beta.

 

Absolute Return Multi Strategy

The Absolute Return Multi Strategy exists with the goal to generate a return on investment regardless of market direction. The investment strategy’s objective is to capitalize on both upside and downside market moves while finely controlling risk and drawdowns, therefore providing sustainable risk-adjusted returns regardless of the market environment.

The Absolute Return strategy focuses on four types of proprietary trading algorithms:

• Long-term trend-following
• Short-term trend-following
• Mean-reverting
• Relative value

Long-term trend-following

Long-term trend-following strategies apply long-only trading models to capture market upsides over a longer investment horizon.

Short-term trend-following

Short-term trend-following strategies aim to capture up and downtrends using long/short models focused on short-term market movements.

Mean-reverting

Mean-reverting trading strategies focus on identifying market inefficiencies and temporary mispricings with directional long/short positions over a short time horizon.

Relative value

The Quantitative Solutions Team also deploys decorrelated market-neutral trading strategies. These strategies aim to capture the divergence and convergence of spreads across heavily correlated trading pairs and between spot and futures markets.

Smart Beta Diversified Strategy

The Smart Beta Diversified Strategy is a long-only strategy designed to outperform Bitcoin by deploying capital across a range of crypto assets. The investment strategy’s objective is to increase return on investment by outperforming the market while reducing market risk compared to traditional capitalization-weighted crypto asset market indices.

The Smart Beta strategy involves deploying actively managed trading strategies across four proprietary smart beta indices. It also involves daily portfolio rebalancing, powered by market sentiment indicators and market data.

• Bitcoin RV Tilt
• All Stars 1/n
• Top 50 Momentum
• Global Thematics

Bitcoin RV Tilt

The Bitcoin RV Tilt strategy involves a long position on Bitcoin combined with relative value trend-following positions of liquidity crypto trading pairs against Bitcoin to outperform Bitcoin.

All Stars 1/n

The All Start 1/n strategy involves long-only trading models. These models focus on a curated suite of rising crypto assets that receive an increasing or decreasing allocation versus Bitcoin, depending on market trends.

Top 50 Momentum

The Top 50 Momentum index has been built to pick cryptocurrencies with the strongest uptrends based on technical momentum indicators with daily rebalancing in the top 50 ex-stablecoins universe.

Global Thematics

Finally, the Global Thematics index provides exposure across ten thematics – store of value & payments, smart contracts, privacy, web3, DeFi, NFTs & metaverse, interoperability, centralized exchanges, memes, and stablecoins. This exposure is based on a market sentiment scoring model based on social network data with daily rebalancing.

Both strategies enable the Quantitative Solutions Team to construct portfolios that target a specific risk/return profile to deliver customized digital asset funds to investors seeking broad exposure to the crypto markets while targeting specific annual returns or outperformance objectives.

How Iconic Alpha Strategies can be used in customized investment funds 

The Iconic Quantitative Solutions team can develop, deploy, and supervise a set of quantitative trading strategies to generate target returns customized to an institutional or qualified investor’s risk/return profile.

Using a systematic, rule-based approach, the Quantitative Solutions team´s strategies can be integrated for crypto funds or hedge funds with exposure to crypto assets  with predefined annual target returns while limiting drawdowns, even during volatile and bear markets.

Additionally, the ability to combine decorrelated investment strategies allows for the creation of risk-optimized crypto portfolios whose performances are not influenced by overall market sentiment.

The Iconic Quantitative Solutions team, composed of CEO Damien Moser, CIO Marc des Ligneris, and CTO Alexandre Coutouly, possess 50+ combined years of professional experience and a 12+ year crypto trading track record, making them one of the most experienced fund management teams in the global crypto markets.

Click here to learn more about Iconic’s Tailor-Made Investment Solutions and to reach out if you are an institutional or qualified investor looking to invest in the crypto markets.

 

 

About Iconic Funds

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