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Market-Neutral Cryptocurrency Strategy

A fully systematic, market-neutral long/short strategy trading liquid crypto perpetuals. Our regime-aware engine seeks to capture relative-value dispersion while minimizing market beta through disciplined portfolio construction and risk management.

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Strategy Overview

SPEAR® Digital is designed to deliver attractive, repeatable risk-adjusted returns with low correlation to major risk assets and minimal market beta. Our systematic approach selects diversified baskets of long and short positions daily, emphasizing diversification, correlation control, and disciplined risk limits. We do not force exposure—if opportunity quality is insufficient, we elect not to trade.

Why SPEAR® Digital Works

Regime-Aware Signals

The model conditions on daily macro/volatility regimes to adapt data windows and uncertainty tolerances, ensuring optimal performance across different market conditions.

Multi-Signal Selection

Each asset is scored using proprietary features with embedded uncertainty bands. Candidates must clear strict uncertainty gates before entering the basket.

Neutral Construction

We rank expected returns long and short, apply correlation filters to avoid clustering, and size positions inversely to recent volatility for optimal risk balance.

Disciplined Execution

Daily rebalance at a fixed hour with strict stop-loss logic during the hold period. Realistic transaction costs and funding frictions are incorporated with all trades logged.

Industrial Data Pipeline

Market futures/klines and exchange funding rates are ingested and patched incrementally. Macro series are merged to the trading calendar for comprehensive analysis.

Risk Management

Sophisticated correlation controls, dynamic uncertainty thresholds, and regime-aware position sizing ensure controlled drawdown risk and capital preservation.

Simulated Performance Highlights

332.82%

Total Return Since Jan 2022

3.54%

Avg. Monthly Return

44.69%

Avg. Annual Return

3.20

Sharpe Ratio (4% RFR)

9.06

Sortino Ratio (4% RFR)

3.07

Calmar Ratio

-14.54%

Maximum Drawdown

1.77

Profit Factor

0.0003

Correlation vs BTC

SPEAR Digital Cumulative Performance Chart

Investment Process

1

Data Ingest & Cleansing

OHLCV for large-cap perps, 8-hourly funding, daily macro/vol series aligned to trading days.

2

Regime Detection

Macro inputs map to low/medium/high-vol regimes. Model adapts history window and uncertainty gates accordingly.

3

Signal Scoring

Proprietary scoring framework estimates next-period relative performance with embedded uncertainty bands.

4

Portfolio Construction

Rank longs/shorts, apply correlation caps, size by inverse-volatility. Record weights and expected returns.

5

Execution & Risk

Rebalance at daily cut-off with strict stop-loss enforcement and comprehensive trade logging.

Risk Management Framework

Our comprehensive risk management approach ensures capital preservation while optimizing for risk-adjusted returns across varying market conditions.

Dynamic Uncertainty Thresholds

Model confidence requirements adapt to current volatility regimes, becoming more stringent during uncertain periods.

Correlation Controls

Hard limits on cross-asset correlations prevent inadvertent factor concentration and maintain true diversification.

Position Limits

Systematic constraints on individual position sizes and aggregate exposure ensure no single trade can materially impact performance.

Stop-Loss Implementation

Intraday risk monitoring with predefined exit criteria protects against adverse moves during the holding period.

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