MANAGEMENT OF RISK

Risk is not just a four letter word.

A core value at ExoAlpha is the management of risk, in all its forms, at every level of the operations and of the organization. We provide our clients with the highest level of professionalism at every level.

Based on its experience in both hedge fund industry and Digital Asset ecosystem, we have developed and implemented mechanisms and procedure to ensure that each risk remain contained or avoid it completely as much as possible.

Moreover, we have developed an institutional-grade trading infrastructure to execute our strategies without relying on other third-parties. Using cutting-edge technology to ensure redundant systems and best state-of-the-art OMS make us apart in this industry.

Key Elements

  • Decision Risk: systematic execution of robust and proven trading strategies removes the human uncertainty: no second guessing or arbitrary views.
  • Market Risk: strong downside protection in various forms embedded in each strategy in order to limit downside as much as possible.
  • Execution Risk: high availability infrastructure leveraging best in class technical providers, from datacenter hosting to trade execution.
  • Operational Risk: strict procedures enforced, backups & disaster recovery procedures in place, no key-man risk.

Capital preservation at core

Our Approach

A well-constructed portfolio will perform greatly during roaring markets while protecting capital during difficult ones. To build such a portfolio, one needs to assemble different trading strategies, which are uncorrelated to each other, in every market environments.

The main Digital Assets tend to be mildly correlated during upward markets, but then heavily correlated with each other during falling markets. Thus simply assembling a portfolio passively holding Digital Assets will perform poorly during a bear market, as they have demonstrated in the past.

ExoAlpha has developed a set of diversified proprietary trading strategies applied to various Digital Assets, which remain uncorrelated to each other in every market environment, leading to robust portfolios exhibiting strong capital preservation characteristics while not penalizing their upside potential.

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