Power Law Conference x Minotaur: Las Vegas 2025

If you protect the downside, it's only like Bitcoin. The upside is just going to take care of itself.

How are you going to stand a chance? Can you be in front of the computer all day? Don't you get tired? Don't you get sleepy? Don't you get fearful? Don't you get afraid? Or you're up against algorithms. They don't sleep, they don't eat, they have no emotion, they just trade.

$105,292 105.9.

We can completely tune it around exactly what you're looking to get and also your maximum willingness to have drawdown on the account, which is really important.

I started to see this curve going up, up, up, up, up, up. And the consistency of it, right? It really. Foreign.

It's about using powerful physics based insights to understand Bitcoin's next move before it happens. Welcome Giovanni Santostasi. If you don't know who Giovanni is, he's a PhD astrophysicist whose power law theory unlocks Bitcoin's hidden scaling behavior and reveals the physics structure driving its long term trajectory. At Minito trading systems, we've actually figured out a way to harness Giovanni's theories to inform our very own algorithmic trading system. What that does for us is it gives every decision precision and clarity and it enables us to actually generate income from the price, action and movement of Bitcoin. Daily, weekly, monthly, enables that income generation without stress, without fast work and without waiting years for returns. So let's dive in and make the most of today's event. So welcome Juha.

First of all, I like this picture because basically this is what I'm trying to do, right? I'm trying to be like the Galileo Bitcoin wave. And it's actually another bit of a joke. But I'm asking everybody, say, you know, Galileo was famous to tell people, look, if you don't believe in the things I'm saying, like for example, Venus has faces, right? So it means that he goes around the sun, has to live there, he will say, come and look at my telescope, right? Many people didn't want even to look at this telescope because they thought, you know, it's kind of magic or something like that. And the few people they did, they would say actually that telescope was made by the devil, you know, to deceive us, right? Is that really true? And so many people react to the power law like that because they think maybe it's coincidence or whatever, right? But it's not coincidence, it's all math. 10, 12 years ago, you could make 10 pair in a year. Anybody knows what is the rate of growth of bitcoin? What is a annual percentage that you get by holding bitcoin in average rent? 42%. In fact, we can calculate it. I give you a formula. If you want to write it down, if you want to use it, anybody wants to try, but let's do it today together as an exercise. And the formula is like this. You open parenthesis, another parenthesis, and then you write down the age of the coin. Right now it's 16 years old, right? So you can do it in days, we can do it in years. So let's use these appears it's 16 years, right? 16 years when you add one. So 16 plus one. So seric gene, right? And that you divide it by 16 is our formal codes. And then you close the parenthesis and use that. You need to use a scientific calculator. So the little carrot sign. And you do 5.82. And what you get anybody 1.42. You should get. This is what you should get. 1.42. What that means that basically that is a growth 1.42 times it is 42%, right? Right now Bitcoin is 42%. Let's move on. Can you find out how many days today from January 3rd, 2009 we can test this formula. Let's see how what this formula tell us the price of the coin is today? 5,990 days. Let's use this. Basically the formula says like this is how power law looks like. It's basically any relationship where you are yes, with some constant, then X whatever it is. In our case, this is price and this is time to the power of N. And N is 5.83. Okay. And A is that very small number. So 10 to the minus 13 simply means 0. Sixteen zeros one. Why? Well, let's test the formula first for day one, right? Let's go back here. I put one because that was. We are calculating the price at day one, right? Let's calculating now. Let's put that 5,990 days. So after almost 6,000 days we get which price? Anybody stand up first?

$105,292.

Is that good? And it's absurd, right, that you actually have a form. So it's crazy, right? It's crazy. And this formula has been working for years and years and years.

As we said, we'll go through them and it's awesome. And you could talk gribly, Giovanni about that. The direction this one's going, yeah.

So this is how I drop this, because I, I say, okay, science is beautiful, but one of the things that, you know, really makes science amazing is that we can do things with not right there is the technology is very simple. So what you heard is the science of bitcoin. These are technology. And I, you know, I was like you. I was, I was not part initially of a team. I get contacted by all kind of people, you know, they show me all kind of crazy things like, oh, let's use her Faces of the Moon maybe goes with the power. All kind of crazy stuff, okay? All the time. The bottom line is this. I get contacted by a lot of people and 99% is trash, right? And they told me this story, say, we were afraid to contact you because if you didn't like what we were doing, you were going to tell everybody. Look at the Romeo. All these guys that they are flash. Don't ever invest with credit because of me. This is what I am, you know, I want to focus on reality, you know, what is real. Nobody's bullshit. So I told them when they told me all these things, right? Because I hear it all the time, oh, we can do this, we can do that. Say, okay, guys, let me test it, right? This is how a scientist does as soon as they smell. Let me test it, let me test the algorithm. I started to see this curve going up, up, up, up, up, up. And the consistency of it. It really convinced me.

It's relatively easy to make an algorithm start to make your money. What's very difficult is to get it to keep making you money. When you buck huge bull markets and bear markets, these very big crashes. If you're creating an algorithmic trading system, it has to survive all these environments. Very easy to make something make money on the way up if you're going to short easy on the way down. What happens when you have these drastic changes and what happens as a company if you're giving an algorithmic, fully automated system to the average Joe? He doesn't know what's going on, right? So you've got to put them in the safest vehicle possible to survive everything. So we were writing an algorithm. I guess it was kind of like flying a plane without any of the landing gear. And then I came across the work of Giovanni. And if he's not convincing enough, I don't know who is. And what happens is, this is what happened is that he hasn't discussed so much yet, the power support. But to us as traders, the most important thing about what the Power Law gives us is this line at the very, very bottom. This line is a statistical place where the price doesn't go. And what that does for us is that what we initially were dealing with was the full scope of the price range, right. But when you realize that you've got this support, what does that do for us? It compresses the trading range. What does that turn into? Increased performance. So we went from something that was doing maybe 10, 15% a year. Remember, trading Bitcoin is always different to buy and hold. Remember, buy and hold, you've got a time tops and bottoms. When you're trading, you're realizing gains in real time, whether they're daily, weekly or monthly. So you know, you're doing 10, 12, 15%. You're still doing better than most hedge funds. Not in the top tier, but you're doing pretty well. That's 10, 12% a year is pretty damn good at the Power Law. Now we're talking 5% a month, even a little bit more. And that's what that did to our trading system. It enabled us to compress that trading range and really be able to sleep at night. We don't treat it as it will never go there, but we treat it as the first corner set. So when we're engineering all our algorithmic systems, we're always making sure that everything is based from the red line and above right to us. It's not safe unless all the risk levels, talking liquidation levels or trading, it needs to be below that red line. So then all the math that we're doing as an algorithmic trading company, developing strategies, we're always working off this red line. And this really supercharged the performance. As you can imagine, you know, we've got a much more compressed trading range. And then we call that whole philosophy of if you protect the downside, it's only like Bitcoin, the upside is just going to take care of itself because bitcoin's going up over time. You're just going to keep making money. So the point is, when you're trading crypto, we've all gone probably everyone years played around with other cryptos. You quickly learn that they're just, they're pointless because I don't have this nut to it. And when you can uncover the math, you can develop a system that works very well. Actually, if you go to another 93, it's just a visualization, it's on a different timeframe. We usually trade 15 minute, but you can see on a four hour, what we're doing is we're essentially trading within the powerwall price bands, which makes it incredibly safe. You know where you are anytime. If you take away the power law price bands, it's almost like you don't have a roadmap when you put the power over there on top. And you know exactly where you are at any given point. You know when you need to do worry if you're down here, it really depends because if you crush down here, you know, you may need to start thinking, I'm going to do some kind of protection. But usually what happens is our system, as you can see here, walks the price down. So we could walk the price down and we can walk the price up. And Bitcoin is comfortably staying in this range, statistically 99.9%.

Remember, everyone wants no risk, high returns. I'll tell you now, that's crap. It does not exist. And as your risk increases, your reward increases. If you decrease your risk, your reward decreases. So because of that we can completely tune it around exactly what you're looking to get. And also your maximum willingness to have drawdown on the account, which is really important.

If someone was to buy and hold and sell, well, they've just lost 16%. So you can't compare. Well, if I just hold Bitcoin for 10 years, I'll make more money. Well, yeah, but you might also sell it when the market dumps 30% because you get scared. There's a lot of things to think about. But what we're able to do, firstly, as you can see here, if the market goes with us, it's very easy to take profits. We enter a trade, the market goes up, we take a profit. Another example here we have goes a little bit against us. What we're doing is executing here. Here's a perfect example. Base order, take profit, right? Market goes up, we just make money because it's easy. Base order profit, Base order profit. What do you do when the market goes down? Well, what we do is we've actually calibrated safety orders all the way down to the power law support, which means that we're deploying a small amount of capital at the beginning and then deploying more and more capital as the price goes down. It's not a martingale strategy because it's not the same volume as a martingale strategy. It's much less. But it is a DCA style strategy. The guys can also explain to you what, what is really interesting about what we do is you'll see that we have really good local bottom. So the technicals that we're using indicators in order to enter and exit positions are really, really powerful. If you were to use mechanical DCA logic, it wouldn't get you this far down and it wouldn't be capturing these local bottoms. It will kind of be like here, here, here. But what we're doing with our algorithms, my algorithm is smart enough to go give me the minimum DCA position, but if I can see a trend, I'll go for the technical. So it'll dive deeper into the position and that's why you see it buying those local bottoms. So this, this example here, you see we literally rode the price down from 70k and we took profit at 59. So from 70k we took profit at 59 long only, no shorting. Right. It's a much safer thing to do.

Right.

With Bitcoin, if you do want to short, we do have the trading desk over here. They, they turn the Rolls Royce into a jet plane. But the out of the box strategy that we give to our clients is exactly how this works here. This is what Giovanni is running at the moment, this is what most of our clients are running. But that is basically us in action. I'll take some questions now. We've got a few hands.

Would this be a microclass of how.

You guys would handle a 12 month bear market cycle or would that be different? Our out of the box settings have been simulated, so we've been running live for around two years. But what we've done is we've actually exported all the data from the last five years to give us a full bear bull market cycle. The settings that we give everyone survive them. Right. And because we have depreciating, the cycles are going to be less extreme every time, which means that if we survive the last one, it's a good chance we're going to survive this one. And what actually happens is the price doesn't crash in a straight line, it's not a candle. So what actually happens is, is we walk the price down. You know, it'll crash down eventually there'll be a mini rally, we'll take profits and then we'll continue down. Just like here, we entered here at 70, we entered this one at 60. If the market had gone down again, we could have done another whole thing all the way down to 40, then we could have gone down to 30. So it'll just step its way down.

Instead of just selling at the top and reinvesting everything.

Correct, correct.

I mean, and you could, in theory, yeah.

And it resets itself.

You could do also that. Right. Because it doesn't. Only you use your Bitcoin as a collateral. You can do a combination of SDT and Bitcoin. So if you follow me, plus, you know, we have a discord channel, etc. We are a community. That is one of the things that goes with this. You became part of this community. This is one of the things we discussed. Are we close to a top. If you kind of follow this premise, maybe take 10% of your holdings and rebalance and go to SDT. So now you have a yesterday when you have, when we reach that bottom, that we know where it is, you can use that to buy more Bitcoin, you know, so you can use a combination of it in the 12 months down, even in a compressed period of time.

Absolutely. But what tends to happen is you have the deal last for longer, but the profits are much larger. So you're having less activity because you're, you're taking these positions, you're waiting for these bigger drops, but you're creating a much larger volume position. So effectively for those 12 months it'll be less active, but perhaps even more profitable.

We've been developing these algorithms and working exclusively with Giovanni now, 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 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 a, 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. So traditional hedge funds, you know, I'm not saying they're bad, but they push you into investing a lot of money. And at the end of the day, where is the real edge? If when bitcoin falls by 10%, the hedge fund falls by 10%, I mean you're better off buying Bitcoin and holding it in a cold wallet. It literally doesn't make sense. So the Point here is not that. Look at us, we're better than all the funds on earth. The point here is look at what Bitcoin's price does and the real value comes into understanding how to dollar cost average into its position. Now, as bitcoin price falls, when we cost average down, we can make our first buy at 100, we can make our last buy at 70 and we can exit the market at 72. Now the value in this is 1, we're no longer correlated with the buy and the spot hold. What this means is we've separated ourselves and not only are we not correlated, the algorithm has completely reset at the new concurrent price. We don't need to wait for price to return back to where we made our original buy to break even. Right? Remember that you don't have to retrace all the way back up the top to make profit. You have to get back to that first buy to break even. With our system, you're able to buy the top, sell the bottom and make money.

What drives the short term volatility is you have to understand that all the asset exchanges or marketplaces, they are driven, I'm speaking of legacy assets first, like stocks, bonds, currency, forex and even crypto are driven by institutional computerized trading systems. I was a stockbroker way back in 1999, 2000 and these institutions had access to computerized trading systems back then. The Nasdaq is over 50 years old. Stands for not automated quotation systems, electronic systems. So they've been making a killing off this for a long time. And the reason why we are doing this in crypto is it's an emerging asset class and they're not quite ingrained there yet, but they will be. Anybody seen the movie the Terminator? In an environment that's dominated, they're over 90% of the trading volume. In an environment that's dominated by robots or computers or, or sentience or whatever you want to call them. Then why would you go up against those types of weapons manually? That's why manual traders, we can't win. Yes, it's just like the casino. It's the same business model. You can go down there and play blackjack, craps or whatever you like, Roulette, you'll hit a hand or two. But we all know that over time are you going to leave that casino with less money and more money. So if you try to manually trade against all of these, there's literally tens of thousands of algorithms running in all different time frames. How are you going to stand a chance? Can you be in front of the computer all day. Don't you get tired? Don't you get sleepy? Don't you get fearful? Don't you get afraid? Well, you're up against algorithms. They don't sleep, they don't eat, they have no emotion, they just trade. And none of this is magic. Kassa just showed you it's not magic. What we do is something relatively simple. We just do it flawlessly.

Okay, so you said that a high percentage of the price action is due to bots or already trading programs out there in place. Is that correct?

Yes.

How do you then isn't that a contradiction to the natural power law that you're talking about? Because they're fitting done by bots and computers. How do you reconcile that with your power law being a natural price movement of Bitcoin?

I see the power law as the seasons. Right. The power law is predicting winter, fall, summer. Right. Just like the weather. Right. We know predictably that the fall is coming and we know kind of when it's coming. But there's outliers, the bubbles that he spoke of in trading. The institutions are trading in the millisecond, nanosecond, one minute. So there's, they're pushing all types of large volume and we can't predict what the weather's going to be tomorrow. It could be sunny, it could rain, could do a lot of different things. And that these unpredictable short term movements fit inside of a larger natural process. So what I was speaking on, when I was saying, when I was saying that you have to. We live in a world where institutional bots are pushing the price around on a short term basis like crazy. Bitcoin is going all over the place.

In the short term, think about tides, right?

Yeah.

You can have a boat that is doing all kinds of things, waving, going up and down, up and down.

So what I was encouraging is we're all manual traders at some point or at some level, right. And we always are frustrated and we're scratching our head, oh, the price went up there and hit my stop loss and reversed back down. Well, these, these algorithms that these guys are running right there, Citadel blackrock with their Latin and Jim Simons is the godfather of algorithmic trading and using math like this gentleman here. Well, it only stands to reason from an intelligence perspective that if I'm up against bots, then it'd probably be a good idea for me to get my own. Right. That's why I was using the terminator analogy. Right. Another thing that we have to understand, we're Talking about legacy assets versus new emerging assets. Right? The reason we want to run it, somebody asked me, why don't you put it on Forex? We want to run it on crypto because it's a new emerging asset class. Right. And what's the advantage of doing that? The advantage is in legacy asset markets that's been around forever, like currency and stock market, they've got bots that have been running there for 30 years. They're very efficient. It's extremely efficient. We can do some profits there. But in a relatively inefficient market like crypto is, we probably have about a three to five year window. And it's amazing how me and this guy, I'm coming from a trading perspective, he's coming from a nature physics perspective and we, yeah, get to the same destination. So it's a beautiful thing.

What's your expected target return on this thought and what you're actually experiencing?

Your expected return is going to be really directly tied to essentially the way you run the algorithm. And this is really important because we discussed earlier about how we have the ability to essentially tune the algorithm to protect the Power Law support. But obviously every single client we work with is at an individual level. Everyone wants different things. Some people love Bitcoin, some people don't even believe Bitcoin is a real thing, which is crazy, right? But this is a reality. So it's not about putting everyone on the same setting. It's about understanding what a client wants and actually consulting them on a one to one to understand what they're comfortable with. Now, the expected returns are going to be vastly different depending on how you set it up and the focus of what the client wants. The only real recurring value is that you're going to be defending at the Power Law support. No matter how we go about setting you up, that's going to be the focus of almost everything you're doing now. Expected returns, if you run it extremely safe, with next to no liquidation levels, it's going to be in the net range of potentially 10 to 15% a year. But remember, you're running no liquidation risk. Remember everyone, how earlier I mentioned risk and reward is tied at the hip? If we increase the risk, the reward is going to increase. With that and the way Giovanni runs his algorithms, he's got an average liquidation price of 10k, which I can tell you guys right now is significantly lower than MicroStrategy's liquidation price. All right, so that's important to understand as well. But you know, the returns will be dialed in relative to the risk that you're taking. And it's a hard question to answer for that reason because since we're using a math based system, there's a lot of ways you can run it. Right. You can really get lost in it.

Bitcoin's the rocket ship we're all on. We're just giving you some jet fuel to put into the back of the engine to get you a little bit faster.

I can make a final note and then I think soon we'll wrap up because we've been going for a while. From my perspective and from a developer perspective, I think, I think it's important to understand, you know, and I want to be really clear on this. This is not some magic money printer that's perfect, that's flawless, that you know is never going to lose and you're going to become a millionaire overnight. This is something that can give you consistent, reliable, realistic returns over a long period of time. And I think everyone here really needs to think like that. Because when I entered bitcoin, all I kept trying to do was figure out how can I get rich really quickly? And all I kept doing was losing money over and over and over. Even in the times where I'd made significant and money, my emotion allowed me to hold onto it and I lost it all. It wasn't till I started realizing, just like anything in life, you need to have long term vision for something like this. This is not a short game we're playing, right? This is a game that, although we've noted we don't have that much time, we have enough time to fuel what we have now to get us into a position of power. And it's not about overnight success and getting rich. It's about staying alive in the market, holding onto your Bitcoin, not selling it, and getting consistency over long periods of time. That is the key here, right? To everything we're doing.

Yeah. So when you say like this is 100% finished product, so if we pay this fee, you're gonna give us this, this algorithm and then if you improve it a little bit, we're not gonna get it.

It's a great question. It's a great question. So we're giving you a finished product we've been building, or I've been building for a long time, since I lived in my mum's basement and started coding and you know, when I was a kid and understanding how to do this. But what's important to understand, if we develop this and make this better now I'm not institutional Power Law algorithm, because that's something we've just started developing, right? And it takes a lot of time, but the finished product, you know, we spend. We live and breathe this. You know, I spend all day. Because we've got customers here in the room. You guys can talk to them after. We've got an obligation to not just build a product that works now. We've got an obligation to build a product that can last forever. And that requires constant development, making the algorithm better, attuning it, and looking for ways to actually make it more, not only profitable over the long term, but safer. Now, one thing I'll tell you and all of our customers to testify for this. If the algorithm gets better, you're getting the algorithm. And we're not going to charge you every time we make an edit and say, hey, guys, no, doesn't work like that. You're getting the finished product. And if we develop it and build it over time, you're getting the best version, always. I can assure you guys that the.

Best version will be the safest version. That's what's important.

Thank you, everyone. It.