Our investment process

Dealing with High volatility 

High price volatility is a normal phenomenon in the digital assets world… 

The digital assets market is still emerging and very small compared to traditional markets (several hundreads of billions US dolalrs). This means that small forces can have a significant impact on asset prices.

There is no physical asset to back up the value of major cryptocurrencies. Their value is therefore fully supported by trust. Any decrease of confidence could have a very negative and direct impact on prices.

Weekly performance of Bitcoin since January 2017 (in USD)

But this volatility allows investors to effectively diversify their financial portfolio through the decorrelation of cryptocurrencies compared to other financial assets.

Correlations cryptocurrencies – traditional assets

We said An innovative investment process? 

We enable clients to add diversification to their financial portfolio by investing in our crypto fund products in a simple and transparent way.

Our investment process takes into account two important parameters neglected by traditional finance: the psychology of markets and the intervention of algorithms as major players in global transactions (between 70 and 90% depending on the stock market places).

Coverage of multiple time horizons: few traditional portfolios really implement long-term convictions while implementing real medium or short-term strategies to cope with fluctuations (the case of market downturns at the end of 2018 is a perfect example)

A solid investment process which can deliver performance in both bull and bear markets (long/short): asset managers often tend to maintain only long positions by exposing themselves to sudden downward market fluctuations without any protection.

Quick and unemotional decision-making: every investment decision has many biases, especially emotional ones. Intervening through quantitative and systematic process makes it possible to avoid these biases and to analyse markets and make decisions in real time.

An investment process with strict profit targets and loss limits which are defined before the implementation of signals in the portfolio (take profit and stop loss). 

Trend Only offers institutional investors tailor-made products that meet all criteria for professionally managed funds.

Safety first!

All the information necessary for any transaction will be recorded in a register distributed to all the participants of the network. The transaction history will be stored permanently, immutably and time-stamped in the Blockchain.

Digital assets will be stored in a regulated structure in Europe, ensuring compliance with professional standards for cryptographic and physical security, as well as compliance with legislation. Trend Only will be among the first asset managers authorized by a leading European regulator to manage digital assets.