An algorithmic trading system is benchmarked against hedge funds and crypto funds like Ark Invest using historical data, backtests, and live client trades. The algorithm shows measurable correlation to Bitcoin but avoids the one-for-one drawdowns of simple spot buying.
These graphs are put together based on not only historical data, but our backtesting data also. And then the live data that we don't only collect on our own accounts, but we collect from all the clients we trade with also that are here with us. Essentially, what this graph you're looking at is essentially looking at our benchmark algorithm against the rest of traditional hedge funds in the market and also crypto based funds like Ark Invest. Now, a reason we're able to get a unique correlation and this is a really interesting graph here, right? And what this is basically showing you is, is how correlated our algorithmic trading system is to Bitcoin's buy and hold price action. Now, what Costa showed you earlier, when you're buying and holding, you make for example, a spot buy at 100k. If the market falls, spot buying means you're in drawdown, which also means you're in a one to one correlation to Bitcoin's price.
