BaseTwo Digital Alpha is a completely systematic absolute return strategy that uses futures contracts taking long and short exposure to Bitcoin and Ethereum. Trading is carried out on the most liquid futures exchanges for cryptocurrencies (e.g. Binance, Bitmex and Deribit) and aims for an unleveraged gross return of 50%.
The strategy has its roots in insights acquired over years of trading in institutional foreign exchange and futures markets. These intuitions are turned into quantitative models, verified using data and deployed to run fully automated using proprietary technology.
The strategy uses price, volume, orderbook and trade data to identify tremors leading to large market moves and uses these to enter directional bets. It exits these based on reversion signals and executes all trades using smart order routing to ensure best results.
A large percentage of the portfolio is in long/short momentum driven instruments allowing the fund to perform in bull and bear market conditions. Stablecoin instruments are also used to protect against downside whilst maintaining active capital management.