Using a mosaic approach, disparate data points are collated from public and private sources and supplied to in-house data science tools to identify opportunities. Research infrastructure scans blockchains, price data, order books, social media, and news.
The best opportunities are revealed through research.
In depth-research of underlying digital asset technology is conducted, from blockchain flow analysis, to smart contract audits, as well as applications in development, to identify potential price dislocations and market inefficiencies.
Homing in on dislocations and inefficiencies, quantitative analysis identifies opportunities and sets up appropriate long and/or short entry points as well as caters for trade duration and sizing.
Long Positions
Long positions are not entered just because a digital asset is cheap (value trap) or solely when its price is rising (momentum). As the digital asset market matures, underlying technology and blockchain development becomes more important than ever.
1. Analytical
Data processing tools identify price dislocations and material price-impact based on proprietary factors
2. Blockchain Analysis
Blockchain flow data is analyzed to determine if digital asset is in accumulation or capitulation phases
3. Quantitative
Mathematical models are used to analyze trade data and order books to determine ideal long entry and exit points
Short Positions
We leverage our experience in the industry and scrutinize the price, order book and blockchain data to discern if a digital asset has reached the high end of its price range and is positioned for a reversion to the mean or a sharp correction.
1. Analytical
Data processing tools identify price dislocations and material price-impact based on proprietary factors
2. Blockchain Analysis
Blockchain flow data is analyzed to determine if digital asset is in accumulation or capitulation phases
3. Quantitative
Mathematical models are used to analyze trade data and order books to determine ideal long entry and exit points
Portfolio monitoring systems manage portfolio risk 24/7 to prevent trade concentration and manage exposure.
Trades are automatically sized according to strength of conviction and trade frequency optimized to ensure minimal slippage.
Just because digital assets are volatile doesn’t mean they are inherently risky. Utilizing a multilayered approach to risk, that covers every aspect of our operations, from cybersecurity and physical hardware, to trading and counterparty risk, risk management is at the heart of everything we do.
Concentration
We believe that an actively managed digital asset strategy should be fairly concentrated during times of market dislocations and periods of gross inefficiencies, to generate above-benchmark long-term returns.
Sizing
We will invest greater amounts of capital in digital assets where we find greater risk-adjusted value and vice versa. If blockchain flow data suggests that target prices can no longer be supported, we will reduce the weighting of that position or exit the position altogether.
Active Hedging
We believe our risk-adjusted value approach to digital asset selection that melds blockchain data analytics and in-depth research, with active hedging using derivatives, can generate superior risk-adjusted returns over a three-year to five-year time horizon.
Automated, algorithmic trading programs trade multiple short to mid- term strategies 24/7 to capture digital asset price movements using rules-based, signal-generating logic, ensuring stable performance and low instrument correlation.
Digital asset markets run round-the-clock and require relentless monitoring. Automated trading algorithms scan prices and order books 24/7 and execute both position entry and exit according to pre-programed parameters.
Data Driven
Automated bots scour price information, order books, sentiment and blockchain data
Factor Driven Analysis
Quantitative tools identify digital asset price dislocations and inefficiencies automatically
Automated Entry & Exit
Trading algorithms enter and exit positions automatically according to preset profit targets
Important Risk Information
The information provided on this site is for informational purposes only. It is not to be construed as investment advice or a recommendation or offer to buy or sell any security. Prospective clients should always obtain and read an up-to-date product and/or services description or prospectus before deciding whether to invest. Any views expressed herein are those of Novum Alpha SPC (“the Company”) are based on available information, and are subject to change without notice. Novum Alpha SPC is a registered mutual fund under Section 4(3) of The Mutual Funds Act (2021 revision to carry on mutual fund business in or from the Cayman Islands, subject to the provisions of the aforementioned Act with Registration Number: 1890405.
There are no guarantees regarding the achievement of investment objectives, target returns, or measurements such as alpha, tracking error, asset weightings and other information ratios. The views and strategies described may not be suitable for all clients. The Company does not provide tax or legal advice. Prospective subscribers should consult with a tax or legal advisor before making any investment decision. Investing in any investment product entails risks and there can be no assurance that the Company avoid incurring losses or achieve any of a prospective subscriber’s investment goals.
Performance quoted represents past performance, which is no guarantee of future results. Investment and principal value will fluctuate, so you may have a gain or loss when assets are sold. Current performance may be higher or lower than that quoted product’s expenses and other liabilities, and such product may be unable to meet its investment objective