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Explore classic modular strategies

Asset management classics available as building block strategies
Create your own strategies using novel strategy primitives

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Vanilla Momentum

TLDR If the price goes up, increase the weight of that token in the pool

Works best with: Large cap cyclical coins and tokens

 

The father of this strategy once said far more money is made buying high and selling at even higher prices than buying low and selling high. Momentum trading is a staple of quantitative hedge funds and Commodity Trading Advisors. More recently, momentum ETFs have arisen as it can be argued that the level of active management needed is minimal. 

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Channel following

TLDR capitalize on small movements but act fast on larger movements

Works best with: Large cap cyclical coins and tokens

Often associated with weighted moving averages, this strategy expects a stable channel where prices can vary - allowing to buy low and sell high within the accepted range. However professional traders understand that a price trajectory can become stale and if the price exits the projected channel you need to act fast to exit a freefall position or increase weight of a now mooning token.     

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Power channel

TLDR ignore the noise of small price movements, act fast on large price movements

Works best with: Small cap tokens and coins. 

Somewhere between vanilla momentum and channel following, there is an argument that small price movement noise distorts or delays acting on a good momentum signal. This strategy addresses that by ignoring those small price movements. Modelling has shown this is a particularly good approach for small cap tokens and coins that can suddenly moon but whose day to day prices are erratic. 

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Minimum Variance

TLDR you want to hold the least volatile constituent

Works best with: Stable Coins

Modern Portfolio Theory is a foundational economic theory of asset management proposed by Harry Markowitz in 1952. Simply put, the theory uses statistical analysis comparing constituent properties to each other to meet a given statistical target. In this case the aim is to reduce the variance of the portfolio as a whole. 

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Mean Reversion

TLDR deviations will revert back to the mean. Buy and sell assuming prices will revert

Works best with: Tokens or coins in bear markets 

This economic principle states that given a long enough period of time prices tend to revert to the historic mean. This strategy involves identifying how long that period of time is and over what historic timeframe the mean should be calculated over. This is a much more refined strategy that can be considered market cycle specific and likely should not be used by itself.   

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