Our Funds
Disrupting the Status Quo: Innovative Strategies for Outperforming the Market
FX Majors Enhanced
Investment Philosophy
The Xnumia FX Majors Fund uses a combination of systematic trading strategies to capitalize on short-to-medium term opportunities in foreign exchange markets. Market inefficiencies, stemming from factors like political decisions, economic data releases, and geopolitical events, produce trends, breakouts, and overbought/oversold situations that can be exploited systematically.
Strategy Overview
The Fund uses a blend of technical analysis and other quantitative techniques with the aim of generating consistent long-term capital growth. The model uses a multi-dimensional approach that currently combines 7 distinct strategies across 15 FX pairs and 1 gold pair, employing a blend of 3 fundamental techniques, namely trend, ranging, and reversion. Each strategy and pair is meticulously designed with its own predetermined multiple timeframe confluence for entry criteria, derived from technical indicators with a focus on smart money order flow. Additionally, the sophisticated trading infrastructure and efficient execution methods enhance the ability to capitalize on numerous trading opportunities; the FX majors Fund benefits from a line of credit facility and access to high leverage.
Risk Management
Risk mitigation is achieved at multiple tiers, as each strategy is algorithmically designed to operate within pre-set risk parameters, utilizing various techniques including exposure control and guaranteed stop-losses. With trading frequencies ranging from 20 to 200 times daily, risk is efficiently curtailed by diversifying across numerous trades, managing exposure, and precluding over-concentration. A trailing stop mechanism allows the Fund to seize the upside potential of profitable trades, while concurrently safeguarding against substantial losses in the event of adverse market movements.
Alpha I Fund
Investment Philosophy
The Xnumia Alpha I Fund seeks to exploit inefficiencies in the pricing of cryptocurrency coins and futures using sophisticated systematic strategies. Crypto assets fall into various categories, such as currency, platform, security, utility etc. Over time a few winners will emerge, whilst most will eventually become worthless. As coins vie for supremacy, volatility is likely to remain. Alpha I uses mathematically proven techniques to generate returns from this volatility, requiring limited exposure to generate outsized returns, hence reducing the prospect of significant drawdown.
Strategy Overview
Our core strategy focuses on the top 15 cryptocurrencies by market capitalization and employs a combination of trend-following and rebalancing techniques to enhance performance. By focusing on the most successful coins, we ensure that the portfolio is exposed to the most promising assets in the space. Additionally, we may deploy excess capital to other systematic strategies with proven live track records.
Risk Management
Risk is managed at multiple levels, with each strategy coded systematically to remain within pre-determined risk levels using a variety of methods, including exposure control and hard stop-losses. The portfolio is volatility-scaled, and has VaR and exposure caps. The Fund does not employ leverage. The CIO has the responsibility for risk oversight and the mandate to reduce overall portfolio risk when appropriate. Exposure to cryptocurrencies is strictly limited, and the trend-following overlay helps to reduce drawdowns in adverse market conditions.