Assessing Correlation: Oxido Solutions’ Trading Strategy vs. Bitcoin

1. Introduction

Oxido Solutions specializes in automated crypto trading bots designed for institutional investors. We understand this market deeply. Our expertise doesn’t just come from helping institutions generate passive income with our fully automated trading strategies, but also from connecting them to top quant firms that align with their investment needs. We know exactly what family offices, hedge funds, market makers, and other institutional players look for when choosing crypto quant trading strategies like ours. One major factor? How much a strategy is correlated with the underlying asset and other strategies in their portfolio. For these groups, it’s all about diversification—minimizing risk by spreading investments across assets and strategies that don’t move in sync. This way, if one strategy falls short, it has a limited impact on their broader portfolio.

In this blog, we’ll explore how Oxido Solutions’ trading strategy can help institutions meet their diversification goals.

What We’ll Cover:

• Data, Key Metrics and Why They Matter: We’ll break down the data and metrics used to assess correlation and risk-return and explain why they’re crucial for evaluating a strategy.
• Correlation Analysis Results: How our trading strategy compares to Bitcoin in terms of correlation and what that means for investors.
• Risk-Return Profile vs. BTC: How our strategy’s risk-return balance holds up compared to Bitcoin, with insights into how it might improve portfolio performance.
• How Strategy Elements Influence Correlation: We’ll dive into the design features that help reduce correlation with BTC, making our strategy a more valuable diversification tool.
• Volatility Comparison: A breakdown of how our strategy’s volatility stacks up against Bitcoin’s—key for institutions aiming to reduce exposure to BTC’s wild swings.
• Market Risk Assessment: How much market risk our strategy carries compared to BTC, crucial for understanding overall portfolio impact.
• Why Bitcoin Might Seem More Attractive at Times: Addressing scenarios where Bitcoin might outperform our strategy and why that’s only part of the bigger picture.
• Takeaways: Summing up the insights, we’ll highlight the main points that illustrate how our strategy aligns with institutional goals, offering a clear perspective on its potential to support diversification, reduce risk, and achieve strong risk-adjusted returns.

2. Data, Key Metrics, and Why They Matter

For this correlation study, we used daily PnL data from the backtest of the latest version of our low-risk trading strategy (including FCFS) on Bitcoin Perpetual Futures with USDT collateral on Binance Futures. We chose this data because it’s the most extensive historical backtest data we have, covering 2021 to the present. Additionally, this strategy is the most popular with our clients. In the future, we plan to include comparisons for other risk profiles, exchanges, and collateral types, such as BTC. This is essential since performance can vary across exchanges, and we aim to keep all clients well-informed.

To assess the correlation between Oxido’s strategy and Bitcoin, we calculated the following metrics for each dataset. Here’s a breakdown of these metrics, grouped by four categories, and why they’re critical for understanding correlation:

2.A. Correlation Coefficients

I. Pearson
Measures the linear relationship between our strategy’s daily PnL and BTC returns. This means that Pearson correlation checks how closely our strategy’s daily PnL (Profit and Loss) moves in sync with BTC’s daily returns, assuming a straight-line (linear) relationship. A higher positive Pearson value means that when BTC’s returns go up, our strategy’s returns also tend to go up by a similar amount, showing a close relationship between the two. A low Pearson value means there isn’t a consistent, direct relationship. So, changes in BTC’s returns don’t significantly affect our strategy’s returns, suggesting that our strategy operates independently from BTC’s movements.

II. Spearman
Looks at the ranking of daily returns rather than their exact values. It checks whether days with higher returns for BTC tend to align with higher returns for our strategy, and vice versa. This can show a relationship even if the actual returns aren’t moving up or down by the same amount, or in a perfectly straight line. This is useful to identify any non-linear relationships. Spearman correlation can detect patterns between two datasets, even if those patterns aren’t perfectly straight lines (linear). For example, if there’s a consistent but curved relationship (like an up-and-down pattern) between BTC returns and the strategy’s PnL, Spearman correlation would still pick this up. Unlike Pearson (which only captures linear relationships), Spearman can show whether there’s a general trend where higher BTC returns align with higher or lower PnL, even if the change isn’t in a straight line.

Together, Pearson and Spearman correlations help us understand both simple and more complex relationships, clarifying whether our strategy’s PnL is linked to BTC in any straightforward or nuanced ways. This combined insight is valuable for understanding how independent or intertwined our strategy is with BTC’s performance.

Both Pearson and Spearman correlations low: This would imply that there’s minimal relationship in both linear and non-linear ways, meaning our strategy is independent of BTC’s movements.

High Pearson, low Spearman: Suggests that while there’s some linear relationship, there aren’t other complex trends or patterns connecting our strategy and BTC.

Low Pearson, high Spearman: Indicates that although there’s no strong linear relationship, there’s a non-linear trend (e.g., wave patterns or occasional correlations) that aligns with BTC’s returns.

2. B. Risk Metrics

I. Beta
Measures how much our strategy’s returns move in response to BTC’s returns. A high beta would mean that when BTC goes up or down, our strategy’s returns tend to follow, moving in the same direction. For instance, if BTC’s price rises by 1%, a beta of 1 would suggest our strategy’s returns also increase by about 1%. A low beta (close to 0) means BTC’s price movements have minimal effect on our strategy’s returns. This suggests our strategy isn’t influenced much by BTC’s market swings and, therefore, has low market risk tied to BTC.

II. R-squared
Indicates how well BTC’s returns explain the variations in our strategy’s returns. An R-squared close to 1 (or 100%) means that BTC’s movements can explain nearly all of our strategy’s returns, suggesting a very close relationship. An extremely low R-squared (near 0) means that BTC’s returns don’t explain our strategy’s returns well at all. This implies our strategy operates independently of BTC, which can be valuable for diversification since it suggests that BTC’s market trends don’t drive our strategy’s performance.

III. P-value
Tests whether the observed correlation between BTC and our strategy is statistically significant or just due to random chance. A low P-value (typically below 0.05) indicates a strong likelihood that the correlation isn’t random, meaning there’s a statistically significant relationship. A high P-value suggests that any observed correlation could be random, and there’s no significant link between BTC’s returns and our strategy’s returns. This would reinforce the idea that our strategy is largely independent of BTC’s movements.

Together, these metrics give us insights into the level of risk and dependency our strategy has on BTC. A low beta, low R-squared, and high P-value would suggest that our strategy moves independently from BTC, providing a diversified return profile for investors.

2.C. Volatility Measures

I. Strategy Volatility
Measures how much our strategy’s returns fluctuate over time. High volatility means our returns can swing widely, which may imply higher risk. Low volatility suggests that our strategy’s returns are more stable and consistent, which is generally viewed as lower risk. Comparing our strategy’s volatility to BTC’s volatility is essential because if our strategy is less volatile than BTC, it could offer a smoother, more predictable return profile, which can be attractive to investors looking for stability.

II. BTC Volatility
Represents how much BTC’s price changes up or down over time, which can be extreme due to the cryptocurrency market’s unpredictability. By using BTC volatility as a benchmark, we can see if our strategy is more stable or just as volatile. If our strategy has significantly lower volatility than BTC, it suggests our approach is better at controlling risk, making it a less risky investment in comparison to holding BTC directly.

Comparing these two metrics highlights how our strategy can offer stability in a volatile market. If our strategy’s volatility is lower, it signals that we’re providing a less risky, more consistent alternative to BTC, appealing to investors who want exposure to crypto with reduced market risk.

2.D. Performance Metrics

I. Sharpe Ratio
Measures risk-adjusted return, indicating how much return the strategy generates per unit of risk (volatility). A higher Sharpe Ratio means the strategy is more effective at converting risk into returns, showing that it’s producing strong returns without taking on excessive risk. For investors, this ratio is a key measure of quality. If our Sharpe Ratio is higher than BTC’s, it implies our strategy provides better returns for each unit of risk taken compared to simply holding BTC.

II. Tracking Error
Measures the difference between our strategy’s returns and BTC’s returns over time. A high tracking error means that our strategy’s returns vary significantly from BTC’s, showing that it’s following its own unique path rather than moving closely with BTC. This can be valuable for diversification because it suggests our strategy isn’t directly tied to BTC’s performance. Even when BTC experiences significant price swings, our strategy may behave differently, adding a layer of independence within an investment portfolio.

When combined, the Sharpe Ratio and Tracking Error offer a comprehensive view of both the quality of our strategy’s returns relative to its risk and its degree of independence from BTC’s performance.

3. Correlation Analysis Results

Here’s a summary table showing how each metric highlights the degree of connection—or independence—between BTC and the strategy’s performance:

4. Market Risk Assessment

To evaluate the market risk of our strategy, we focused on five primary metrics—Beta, R-squared, P-value, Pearson Correlation, and Spearman Correlation. Together, these metrics reveal the level of dependency our strategy has on BTC’s performance and the extent to which it operates independently of BTC’s price movements.

I. Beta
Our strategy’s Beta is 0.0112, showing that BTC’s price changes have almost no impact on our returns. This very low beta indicates minimal market risk tied to BTC, making our strategy resilient to BTC’s typical volatility.

II. R-squared
With an R-squared of 0.0013, BTC’s returns explain only a tiny fraction of our strategy’s returns, confirming that our strategy operates largely independently of BTC’s price trends. This independence is valuable for diversification, as it reduces exposure to BTC’s market-driven volatility.

III. P-value
Our strategy’s P-value of 0.1759 is relatively high, indicating that any observed correlation is likely random rather than statistically significant. This further supports our strategy’s independence from BTC’s movements, reinforcing its low exposure to BTC-related market risk.

IV. Pearson Correlation
With a Pearson Correlation of 0.036, our strategy has a very weak positive linear relationship with BTC, meaning BTC’s daily returns have minimal direct impact on our strategy’s performance. This low Pearson correlation reinforces our strategy’s independence from BTC’s market fluctuations.

V. Spearman Correlation
Our Spearman Correlation is 0.046, which indicates a very weak positive rank-based relationship with BTC. This low Spearman correlation implies that BTC’s returns do not significantly influence our strategy’s performance, even in more complex, non-linear ways.

The combined insight from these metrics (low Beta, low R-squared, high P-value, and low Pearson and Spearman correlations) indicates that our strategy is largely independent of BTC’s market movements, meaning it carries minimal exposure to BTC’s specific risks. For investors, this translates to:

• Limited Sensitivity to BTC’s Volatility: With a near-zero Beta, our strategy’s returns do not closely follow BTC’s price swings, reducing overall portfolio exposure to crypto market volatility.
• Strong Diversification Potential: The low R-squared, along with the low Pearson and Spearman correlations, underscores our strategy’s independence from BTC’s returns, making it a valuable addition to portfolios seeking reduced exposure to BTC’s systematic risk.
• Consistency Amid Market Fluctuations: The high P-value and weak correlations suggest that BTC’s performance has minimal impact on our strategy. This stability can be appealing for investors looking to maintain consistent returns during periods of BTC-driven market turbulence.

Why does this matter for Institutional Investors? Institutional investors prioritize risk management and diversification. Given BTC’s inherent volatility, a strategy with low market risk tied to BTC can add stability to a portfolio by acting as a buffer against BTC’s sharp price swings. The combination of low Beta, low R-squared, high P-value, and weak correlations (Pearson and Spearman) indicates that our strategy operates independently of BTC, providing reliable performance regardless of BTC’s price behavior. This makes our strategy especially appealing to institutions aiming to diversify within the crypto market while minimizing exposure to BTC’s specific market risks.

In summary, our market risk assessment shows that our strategy is largely unaffected by BTC’s fluctuations, offering a stable alternative with limited exposure to BTC’s systematic risk. For institutional investors seeking crypto exposure with a controlled risk profile, our strategy provides a compelling option for achieving stability and diversification within their portfolios.

5. Risk-Return Profile vs. BTC

The risk-return profile provides insight into how much return a strategy generates for each unit of risk taken. In this section, we examine how our strategy’s risk-return profile compares to holding BTC, highlighting the strategy’s stability, risk-adjusted returns, and potential appeal for investors seeking to diversify within the crypto market. Key Metrics: Volatility, Sharpe Ratio, and Tracking Error.

I. Volatility
Our strategy exhibits significantly lower volatility than BTC. Specifically, strategy volatility stands at 15.87% annually, while BTC’s volatility is 51.75%. Lower volatility indicates that our strategy’s returns fluctuate less, providing a smoother and more stable return profile. For investors, this reduced volatility means less exposure to sharp market swings, which is particularly valuable in the highly volatile crypto market.

II. Sharpe Ratio
Our strategy’s Sharpe Ratio of 2.97 is notably high, reflecting strong returns relative to its risk level. In contrast, BTC’s Sharpe Ratio is typically lower due to its high volatility. A high Sharpe Ratio implies that our strategy generates more consistent returns without taking on excessive risk, making it an attractive choice for investors looking for effective risk management in their crypto investments.

III. Tracking Error
The Tracking Error of our strategy is 53.57%, indicating that it diverges significantly from BTC’s performance. High tracking error means our strategy doesn’t closely follow BTC’s price movements, providing valuable independence. For investors, this independence reduces the chance that our strategy will mimic BTC’s volatility, offering an alternative pathway for returns even when BTC experiences large price fluctuations.

Together, these metrics indicate that our strategy provides a strong balance of risk and return compared to BTC:

• Lower Risk, Smoother Returns: With much lower volatility, our strategy offers more stable returns than the inherent instability of BTC. This makes it suitable for investors seeking consistent growth with minimal exposure to extreme price swings.
• Efficient Risk-Adjusted Returns: The high Sharpe Ratio shows that our strategy delivers strong returns relative to the risk taken, outperforming BTC on a risk-adjusted basis. This is especially appealing for investors who prioritize efficient returns over sheer market exposure.
• Independent Performance: High tracking error demonstrates that our strategy doesn’t depend on BTC’s price trends. This independence can be ideal for diversification, as it lowers exposure to BTC-specific risks and can help stabilize a portfolio during BTC’s volatile periods.

Why this matters for Institutional Investors? For institutional investors, balancing risk and return is crucial. The high Sharpe Ratio and low volatility of our strategy demonstrate a disciplined approach to risk management, offering an attractive alternative to the high volatility and less predictable returns of BTC. Additionally, the strategy’s independence from BTC’s price movements (evidenced by the high tracking error) makes it a valuable tool for diversification within a broader investment portfolio.

In summary, the risk-return profile of our strategy provides a compelling balance for investors: it reduces risk exposure while delivering consistent, risk-adjusted returns. This profile positions our strategy as a viable, lower-risk alternative to holding BTC directly, enhancing portfolio stability and potentially boosting overall returns.

6. How Strategy Elements Influence Correlation

In this chapter, we explore how specific elements of our trading strategy may contribute to its relatively low correlation with BTC. Unlike BTC, which primarily benefits from long market positions, our strategy is designed to earn returns in both upward and downward market conditions. This flexibility is enhanced by supporting both linear and non-linear perpetual futures, allowing for a more adaptive response to market changes. Features such as the sideways filter, double stop-loss mechanism, and First Come First Serve (FCFS) execution method are key components that help reduce correlation with BTC by allowing the strategy to function independently of BTC’s price trends. Here, we examine each of these elements and consider their role in managing and reducing correlation with BTC.

6.1. Dynamic Position Sizing (DPS)
DPS adjusts the size of each trade based on real-time market volatility. During high-volatility periods, DPS reduces position sizes, while it increases them in calmer markets. By adapting to different market conditions, DPS helps the strategy avoid overexposure to large BTC price swings. This risk-adjustment feature minimizes the impact of BTC’s price volatility on the strategy’s returns, promoting a more independent performance.

6.2. Sideways Filter
Introduced in late 2022, the sideways filter identifies when BTC is trading in a sideways or choppy pattern and avoids trading in these periods. The strategy only takes positions when a strong trend is detected. By avoiding weak or non-directional trends, the sideways filter reduces exposure to BTC’s price fluctuations in uncertain markets. This feature contributes to lower correlation with BTC by ensuring the strategy only engages in clear trending conditions, allowing it to avoid the erratic, low-return environments that often impact BTC’s spot performance.

6.3. Post-Only Limit Orders
This feature ensures trades are executed as maker orders, adding liquidity to the market rather than removing it. Post-only orders reduce slippage by executing trades at the set price or better and avoiding higher taker fees. Post-only limit orders contribute to trade efficiency by preventing unnecessary losses from slippage, which can otherwise be influenced by BTC’s rapid price movements. This efficiency helps keep the strategy’s performance stable and less reliant on BTC’s market activity, promoting lower correlation.

6.4. Double Stop-Loss Mechanism
The double stop-loss mechanism includes two trailing stops—one close to the market price to secure quick profits or limit small losses, and a secondary stop set further away to capture larger price moves. This two-layered risk management approach allows the strategy to lock in gains quickly or secure profits on sudden market reversals. This adaptability reduces the strategy’s need to depend on BTC’s direction for profitability, allowing it to react independently to changing market conditions and reduce correlation with BTC over time.

6.5. First Come First Serve (FCFS) Execution
FCFS expands the range of timeframes for trade execution from 8-9 minutes to 6-14 minutes and integrates two algorithms (ATR and Range Maker) to select trades based on first availability. The broader timeframe and multiple algorithm approach increase trade opportunities and reduce the chance of pattern overlap with BTC’s price movements. By diversifying execution timing and introducing a unique decision-making process, FCFS contributes to the strategy’s distinct behavior and reduces correlation with BTC, as it’s less likely to mirror BTC’s price activity directly.

6.6. Overall Impact of Strategy Features on Correlation
Together, these elements create a trading setup that operates largely independently of BTC’s price fluctuations, contributing to a lower correlation. Here’s how each component collectively impacts correlation:

• Adaptability and Flexibility: Features like DPS and the double stop-loss mechanism allow the strategy to respond flexibly to market conditions, capturing profits without relying on BTC’s directional movements. This flexibility reduces the likelihood of the strategy following BTC’s trends.
• Selective Market Engagement: The sideways filter and FCFS help the strategy avoid choppy, low-return periods and focus on more unique, high-probability trades. This selectivity ensures the strategy isn’t exposed to BTC’s typical volatility, particularly during flat or uncertain markets.
• Enhanced Trade Efficiency: Post-only limit orders improve the strategy’s efficiency by minimizing slippage and avoiding fees, reducing reliance on favorable BTC price movements for profitability.

Why this matters for institutional investors? For institutional investors, the strategy’s ability to generate returns independently of BTC’s movements provides a valuable diversification tool. Each feature—DPS, sideways filter, post-only limit orders, double stop-loss, and FCFS—contributes to the strategy’s resilience against BTC’s volatility and reduces the potential for market-driven losses. This independent performance makes the strategy particularly attractive for portfolios seeking stability and low correlation with BTC. By enhancing return stability and minimizing dependency on BTC’s price trends, these elements together create a strategy that can perform well across various market conditions, making it a compelling choice for institutions focused on risk management and portfolio diversification.

7. Why Bitcoin Might Seem More Attractive at Times

Based on historical backtest data from our low-risk trading strategy for Bitcoin Perpetual Futures, we can conclude that our setup consistently performs well on an annual basis and even outperforms BTC in most months. However, this isn’t always the case on a daily basis, as highlighted by the strategy’s low correlation with Bitcoin. Here are some scenarios where Bitcoin might outperform our strategy:

7.1. Strong Bullish Price Action
In bullish markets, Bitcoin’s value can skyrocket, providing holders with impressive short-term gains. During these phases, BTC’s returns may temporarily surpass those of our strategy.

Challenges for Our Strategy: In very rapid price movements, our strategy might struggle to secure optimal entries or might even miss an entry due to the speed of BTC’s price increase. Additionally, sharp upward moves can sometimes trigger quick stop hunts, causing our strategy to stop out, only for the price to reverse and continue climbing. These conditions can make BTC appear more attractive than our strategy during certain bullish periods.

7.2. Extended Periods of Low Volatility
When BTC experiences prolonged low volatility, BTC holders may still gain if the asset trends upward, even if the growth is slow.

Challenges for Our Strategy: Our system is directional, meaning it relies on strong upward or downward trends to perform optimally. In low-volatility environments, where clear price direction is absent, our strategy’s sideways filter minimizes exposure to prevent losses in choppy markets. This cautious approach can make BTC holdings appear more appealing, as our system may sit out during these quiet periods.

Recovery in Trendy Markets: It’s worth noting that sideways markets eventually transition, and our setup has shown it can quickly make up for missed gains during trendless periods when the market enters a more directional phase. This recovery ability underscores the long-term reliability of our strategy, even if BTC spot holdings may look more appealing temporarily.

Why long-term consistency matters? While Bitcoin may outperform our strategy in certain short-term scenarios, it’s essential to consider the bigger picture.

Here’s why our strategy remains valuable for long-term investors:

• Risk-Adjusted Returns: BTC can experience extreme price swings, which can create opportunities for rapid gains but also add significant risk. In contrast, our strategy is designed to deliver returns with a high Sharpe Ratio, achieving a strong balance between risk and reward. Even if BTC outperforms briefly, our strategy generally offers a smoother, more stable return over the long term.
• Downside Protection: BTC’s impressive bull runs are often followed by sharp corrections, which can lead to substantial losses for holders. Our strategy’s risk management features—such as the double stop-loss mechanism and dynamic position sizing—are designed to limit drawdowns, offering a safer approach to long-term growth compared to BTC’s inherent volatility.
• Diversification and Independence: The low correlation between our strategy and BTC provides essential diversification benefits. While BTC holders are fully exposed to crypto market highs and lows, our strategy’s ability to generate returns in both rising and falling markets helps offset crypto-specific risks, making for a more balanced and resilient portfolio.

Why this matters for Institutional Investors? For institutional investors, stability and controlled risk exposure are crucial. Although BTC’s high-return periods are attractive, the risk of significant drawdowns and high volatility can undermine long-term portfolio goals. With its focus on consistent, risk-adjusted returns, our strategy offers an alternative for those seeking crypto exposure with lower volatility and controlled downside risk. In the end, while BTC may outperform during bullish or highly volatile periods, our strategy provides a steadier path to long-term gains by emphasizing risk management and diversification. For institutions and investors who prioritize stability, our approach presents an effective way to capture returns in the crypto market without the pronounced highs and lows that come with holding BTC alone.

8. Takeaways

In this section, we summarize the key points that demonstrate how our strategy aligns with the investment goals of institutional clients. The insights from our analysis show how our strategy supports diversification, reduces risk, and delivers strong risk-adjusted returns, making it a compelling option for long-term portfolio growth and stability.

8.1. Data-Driven Analysis
Our correlation study, based on extensive daily PnL data of the backtest of our low-risk trading strategy for Bitcoin Perpetual Futures on Binance Futures, highlights the value of key metrics like Pearson, Spearman, Beta, and Sharpe Ratio. These metrics provide critical insights into our strategy’s independence from BTC’s price fluctuations, illustrating its potential as a diversification tool.

8.2. Correlation Analysis Results
Low Pearson and Spearman correlation values underscore our strategy’s minimal relationship with BTC’s movements, whether in linear or complex trends. This independence makes it suitable for institutional investors looking to minimize exposure to BTC-specific volatility.

8.3. Risk-Return Profile Advantage
With a high Sharpe Ratio and lower volatility than BTC, our strategy demonstrates a strong balance between risk and reward. The reduced volatility offers a smoother return profile, appealing to investors seeking consistent, risk-adjusted returns.

8.4. Strategy Design for Diversification
Key features, including Dynamic Position Sizing (DPS), the sideways filter, post-only limit orders, double stop-loss mechanism, and FCFS execution, contribute to our strategy’s lower correlation with BTC. These elements allow it to function independently of BTC trends, making it ideal for portfolios needing diversification from BTC’s high volatility.

8.5. Volatility Comparison
Our strategy’s lower volatility compared to BTC provides a more predictable return profile, crucial for institutional investors focused on risk management. Lower volatility means our strategy can offer a less volatile alternative to BTC, contributing stability to a crypto-heavy portfolio.

8.6. Market Risk Assessment
Metrics such as Beta, R-squared, and P-value confirm our strategy’s low market risk exposure. With negligible dependency on BTC’s price movements, the strategy serves as a dependable source of returns that isn’t swayed by BTC’s high volatility, adding resilience to a diversified portfolio.

8.7. Managing Periods of Underperformance
There are certain scenarios, like strong bull markets or prolonged low-volatility periods, where BTC might outperform our strategy. However, our risk-adjusted approach provides downside protection and consistency over the long term, which is particularly valuable during BTC corrections.

8.8. Long-Term Consistency and Stability
Our strategy’s ability to perform in both up and down markets ensures it can contribute to portfolio stability, even in volatile crypto markets. With features designed to control drawdowns, our approach prioritizes steady growth over short-term gains.

8.9. Ideal for Institutional Goals
For institutional investors who prioritize diversification, reduced volatility, and reliable returns, our strategy aligns closely with these goals. Its low correlation with BTC, combined with a focus on risk-adjusted returns, provides a valuable addition to multi-asset portfolios.

8.10. Broader Perspective
While BTC may occasionally outperform our strategy in isolated scenarios, our strategy’s long-term, risk-adjusted approach offers a steadier path to growth. Institutions seeking a balanced approach to crypto exposure will find that our strategy enhances portfolio stability and diversification without the pronounced highs and lows of BTC alone.

In summary, Oxido Solutions’ trading strategy provides institutional investors with a powerful tool for achieving their goals of diversification and risk management. Its consistent performance, low market risk exposure, and ability to generate returns independently of BTC make it a valuable addition to any crypto portfolio focused on long-term stability and growth.

9. DISCLAIMER

The information and opinion provided in this blog is for general purposes only and should not be considered as specific financial advice or recommendations for any individual, exchange, security, or investment product. No rights can be derived from the live performance, backtest data, or any other data mentioned in this blog. Remember, past performance is not a guarantee of future results.