Portfolio managment
See how we manage our portfolio!
Let us showcase to you all the details about our portfolio. It forms an integral part of the StayKing program, as 65% of its results are shared between clients. Let's have a little sneak peek together behind the curtains of the entire system.
What is a trading objective?
At first glance, a simple question has a more complex answer upon closer inspection. The goal is not simply to "finish in the plus", but as well to achieve so-called "overperformance".
Outperformance is when our portfolio as a whole performs better than the market average. For regular stocks, the S&P 500 (index of the 500 largest American companies) is used for evaluation. As of now, there’s no widely accepted index in the cryptocurrency world, so our primary goal is to outperform the largest cryptocurrency - BTC.
The brains of the whole operation
Everything revolves around manager in charge of evaluating results and positions. There is also a whole line-up of other professionals at his disposal. For example, a team of quantitative analysts working on individual positions and evaluating the market environment.
Individual sub-tasks are completed by experts with specific specialisations – evaluating potential rewards on decentralized finance applications and looking for small projects with a big vision.
The performance of our portfolio management
Reap the benefits of portfolio management in the StayKing program
StayKing is a premium program that allows you to receive additional PBX every month. Just lock the tokens into StayKing in order to get your fair share of the trading performance!
Anatomy of a portfolio piece by piece
In order to achieve our goals, our portfolio must be prepared for every possible situation - the cryptocurrency market is not always entirely predictable. Our main tool for coping with this is diversification - both of assets and their purpose.
The portfolio consists of 60% long-term investments and 40% short-term trades. The ratio is subject to change depending on the market environment. There is a constant evaluation of positions, mainly due to distribution and accumulation.
Long-term investments consist not only of the largest cryptocurrencies - such as BTC, ETH, BNB and others - but also of a reserve in the form of stable cryptocurrencies (stablecoins) and risky investments in smaller projects.
The remaining 40% is active trading. When trading, one works with a wide range of tools that assist in evaluating a possible position. A very significant component in the process is algorithmic trading. The program analyzes itself, opens positions and sets stop-loss requirements on its own.
Details from the life of a trading algorithm
Although the trading algorithm manages only 5% of the portfolio, it is the face of the entire program that draws the most attention. We'll show you how it all works and why we put so much effort into its development in particular.
The life cycle of a trading algorithm is similar to software, such as a web browser. The work itself does not end after initial launch, but fully continues in monitoring, evaluation and updating. Python, QC and publicly available Zorro assist us in this.
Algorithms usually trade on futures derivatives exchanges like BTC/USDT. Our algorithm is active and keen to take action - it made overall 1761 trades in year 2021! It also uses leverage during its trades, i.e. a stock market loan for trading purposes - up to five times the amount of deposited funds.
However, leverage increases not only potential profit, but also risk. Therefore, the algorithm is subject to strict capital control as it must never risk more than 3% of its allocation. Other security rules are in place simultaneously.
Briefly about our strategies
There are six strategies currently running that we have rated as "Tier 1" - the best of the best. Three of them try to actively evaluate the current trend and strictly follow it. Others aim to identify a price anomaly and bet on a return to the "standard valuation" of the cryptocurrency.
On top of that, we also have several "Tier 2" strategies that we are about to introduce to you in the near future! Join our Telegram so you don't miss out on it!
