Crypto Asset Management
OUR GOAL:
Combine the mature trading concepts and methods of the traditional market with cryptocurrency assets, develop trading strategies based on the characteristics of digital assets, and provide value-added services to holders of virtual assets.
Business Model:
A: Customer Self-Owned Account Custody Trading: Shaw Brothers, acting as an investment advisor, executes trading strategies without customer intervention. The account assets are owned by the customer, and profits are settled periodically.
B: Customers allocate the corresponding digital currency to trade in Shaw Brothers designated third-party custody account, with transactions executed based on net asset value.
Investment Approach and Strategy
Arbitrage（In USTD/BTC/ETH）
The cryptocurrency market offers more risk-free arbitrage opportunities. We use hedging portfolios to eliminate the risk of systemic price fluctuations in the cryptocurrency market, and use the difference in lending and borrowing rates between different cryptocurrencies to earn higher interest income. Compared with traditional arbitrage strategies, this type of arbitrage trading has more advantages, with annual returns of more than 30% in bull markets and 8-10% in bear markets.
CTA Enhanced Strategy in USDT/BTC/ETH
Leveraging machine learning algorithms to unearth additional high-quality factors, our strategy integrates market volatility and short to medium-term trends in the digital market. The approach encompasses intraday trend-following and reversal CTA, as well as short to medium-term predictive CTA.
Value Rotation CTA
Utilizing a programmatic system for in-depth big data analysis of market dynamics, our strategy performs real-time comprehensive scans across various currencies, rotating to identify assets with the highest and lowest relative spreads for executing long-short hedge paired trades. This approach combines the advantages of big data analysis, effectively mitigating risks inherent in digital currency systems. It embodies a cross-asset trend-following CTA strategy, capturing substantial movements or “major trends” between different currencies.
Option Enhancement Strategy
Through a combination of options and futures derivatives portfolios, our strategy offers a diverse range of approaches. Tailored to investors’ risk preferences and investment objectives, the strategy encompasses various types, including covered call writing, selling put options for “coin hoarding,” gamma scalping, calendar spreads, and other volatility arbitrage strategies. These strategies aim to assist investors in achieving enhanced returns on digital assets.
Combine the mature trading concepts and methods of the traditional market with cryptocurrency assets, develop trading strategies based on the characteristics of digital assets, and provide value-added services to holders of virtual assets.
Risk Management and Control
We employ a neutral strategy, rigorously implementing complete hedging for short positions, maintaining a market-neutral stance across the entire digital asset portfolio. This approach shields the portfolio from substantial price fluctuations, ensuring stable and robust appreciation.
Utilizing algorithmic trading complemented by 24/7 manual monitoring, we ensure the capability for manual trading closures in extreme market conditions.