Frequency Invest
Introduction
Volatility in financial markets will continue to increase in the coming years. Since the United States adjusted its inflation target to 3% annually, asset price dynamics have become increasingly unstable. Today, in an environment of monetary expansion and growing fluctuations decade after decade, having tools that benefit from these changes is more relevant than ever. For individual investors, it will be increasingly challenging to withstand the volatility and aggressiveness of traditional stock markets.
Our goal is to offer a financial instrument that serves as a hedge within the crypto environment, the fastest-growing sector in South America. We do this through high-level, easily accessible financial instruments focused on long-term capital growth and preservation, taking advantage of market instabilities.
Frequency Invest is an investment firm specializing in quantitative trading of cryptocurrency futures. We operate as an alternative hedge fund, combining automation, advanced risk management, and complete transparency for investors.
We are not a custodial entity
Capital always remains in the investor's personal account within the exchange. We manage operations through systems, while investors maintain ownership of their funds.
Our objective is to offer consistent returns and advise investors on long-term capital management. We have dynamic risk control and real-time performance monitoring, seeking to maintain a market-agnostic growth curve and consistently overcome periods of widespread declines.
Efficient Margin
We offer investors the possibility of keeping only part of their capital in the exchange, allowing them to diversify the rest in other instruments that generate additional interest. When external capital is liquid and accessible (e.g., stablecoins on yield platforms), we integrate it into a monthly rebalancing strategy, as it forms part of our management system.
This allows us to apply dynamic rebalancing policies between capital inside and outside the exchange, optimizing the total portfolio return.
Example
An investor looking to invest USD 10,000 could transfer USD 3,000 to Binance and keep USD 7,000 in Nexo, where they currently earn ~10% annual yield in USDT. By combining the interest from external instruments with our trading services, we generate higher compound returns.
Structure and Business Model
- Fund type: Similar to a private hedge fund focused on digital assets.
- Clients: Retail and/or accredited investors.
- Custody: Each user maintains capital in their own exchange account (e.g., Binance).
- Copy Trading: Our infrastructure replicates strategies directly in user accounts.
- Fees: We charge a percentage on investor profits, and annually for capital management only if the investor made profits that year. This avoids charging fees on fees: fees are applied only on new net profits, respecting the high-water mark principle.
Key Metrics
Active users
4
Total assets under management (AUM)
$200,000
Average return
6-14% annual
Maximum drawdown
-6%
Since October 2023, our quantitative trend-following strategies have achieved solid and consistent growth. Our approach adapts to volatility, capturing opportunities in both bull and bear markets.
Key Highlights
- Average monthly return: between 0.5% and 1.2%.
- Maximum observed drawdown: -6%.
- Accumulated net growth: consistent with a low relative risk profile within the crypto futures market.
- High volatility periods: our models increase their effectiveness during market phases with high price dispersion, both in upward and downward movements.
In conclusion, the results reflect a solid, market-agnostic strategy with efficient risk control and the ability to adapt to different macroeconomic scenarios.
Risk Management
Position Stop Loss
Each open position has its own loss tolerance threshold, and if reached, our systems automatically close the position.
Position Sizing
Equal distribution of the relative weight of every asset we trade ensures that none of them excessively affects the client's capital.
Bi-directionality
We can trade both long and short positions, allowing us to be market-agnostic, remaining distant and independent of what is happening in the market.
Diversification
Since we can trade all types of securities, we take advantage of diversification in markets, financial instruments, directionality, strategies, and timeframes.
Decorrelation
Our sophisticated method and technology allow us to take the decorrelation strategy to the extreme, so price triggers never affect different positions at the same time in the same way.
Investment Requirements
1Minimum Initial Investment: $5,000 USD
This capital allows us to efficiently apply our strategies and provide adequate risk management. We do not work with lower amounts as they would compromise the statistical effectiveness of the models.
2Personal Binance Account
Each investor must have a verified Binance account (intermediate KYC level), as we operate directly on that account through copy trading systems via API.
3Basic Knowledge of Investments and Crypto
It is necessary to have a general understanding of how the following work:
- Exchanges like Binance (how to fund, how to view PnL, etc.)
- Basic concepts of trading, futures, leverage, and associated risks.
- How API keys work (we assist you with configuration).
You don't need to be an expert, but you should be familiar with the basic tools of the crypto ecosystem and understand that this is an investment with risk and volatility.