Why This Crypto Hedge Fund Is Ignoring ‘Buy Signals’ And Prefers To Stay In Cash For Now

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Quant fund Strix Leviathan is planning to stay liquid and on the sidelines until it is comfortable that contagion has run its course and the market has a new clear direction.

Our approach for the Nest Fund is to think about crypto assets as commodities. So we have this commodity trading advisor-type strategy, which has been well-known and well employed in traditional finance markets for 40 or 50 years. The first iteration of that looked mostly at momentum type signals—price, volume and volatility. A good chunk of our signal set is still based on price volume and volatility.

Frankly, we're in 1929 right now or maybe early 1930, in a world where there was no Fed. To some degree it is worse for the time being, because at least banks were all doing kind of the same thing.

 

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