The Master Plan
Global Digital Assets Fund (GDA Fund) is a proprietary investment fund, located in Australia and the Dubai International Financial Centre, that focuses on tail hedging, quantitative trading, and explosive downside protection strategies on crypto markets since 2016. We are bringing together the power of quantum computing and Artificial Narrow Intelligence (ANI) to develop pricing models and optimise risk mitigation.
Our investment philosophy is simple; People hate to think that bad things are happening so they always underestimate the likelihood. Earlier this year specifically for the COVID19 market volatility - there is an abundance of opportunities across all markets. It is unrealistic to assume a small team can know it all. We are positioning ourselves at the forefront of the New Age of Finance by leveraging quantum computing, asymmetric tail hedging strategies, ANI and complex financial data insights to capture the market opportunity for the ultimate explosive downside protection in crypto markets.
In short, Black Swan Insurance for crypto—the focus of our fund is combining tail risk hedging with new advanced technologies, like quantum computing and narrowed A.I., for crypto markets.
We are currently in the process of issuing a Crypto Asset-Backed Security (C-ABS) index under the Dubai Financial Services Authority (DFSA). We are wanting to fill the gap between services like the Coinbase custodian solution and traditional liquid markets where traders can trade on tranches. We are working with a number of traditional brokers, family offices, market makers and clearers to bring this initiative forward. This is a huge step for the crypto community.
We aren’t a traditional fund or team and our mindset is not in trying to beat the S&P 500 by 10-15% each year. Others have more money, more power, more connections. We are underdogs. We believe that in order to obtain an edge in the markets you have to bring something different and think out of the box.
We have a strong vision for our fund and what we want to achieve - this vision is built from both our experience and understanding of the markets and ecosystem and also our teams' diverse technological and future-driven backgrounds.
The financial markets contain a lot of noise and contamination - the cross-correlations are tremendous. Even given complete knowledge of all the assets and holdings in a portfolio, it would still take more time on average than the age of the universe (Almost 14 billion years) to compute the impact of each trigger and correlation. Many of the current approaches to portfolio optimisation and risk management are impossible to solve even with advanced tools. In-house built proprietary models, datasets and investment strategies go out of date sooner than anticipated.
The traditional approaches have been to either chase the return and bear the risk, or to de-risk and accept the lower rewards. Unfortunately, the reality is most investors follow the first approach when times are good and markets are calm, and move to a de-risking mode when markets sell-off. The outcome is risky assets are held when the returns are lowest and the transition to safety occurs when low-risk assets are most expensive. Furthermore, current machines, AI systems aren’t advanced enough to completely outperform human intelligence and intuition.
Provide a complete set of new approaches, use of super tools, technologies, complex insights and execution solutions for the top 1% of individuals who are extremely passionate about building a long-lasting edge in the market.
We bring a completely new perspective to finding complex financial data insights and capturing market opportunities. We are positioning ourselves at the forefront of the New Age of Finance. We are combining asymmetric tail hedging strategies with quantum computing and narrowed A.I. for the ultimate explosive downside protection in crypto markets (Bitcoin, selected alt-coins, Bitcoin derivatives).
This distinctive combination allows us to work through massive data sets and apply meta-data labeling in order to improve the overall reinforcement learning of our models for tail risk hedging against Black Swan driven events, quantamental investing, portfolio construction and optimisation. Tail hedging, Crypto Asset-Backed Securities (C-ABS) are new to this market.
Tail Risk Hedging (Black Swan Insurance)
We are bringing a tail risk hedge approach to the cryptocurrency markets - a market that can be described as the ‘wild west’ in terms of volatility and price action, and as we see it, perfect conditions for an increase in Black Swans (As proven many times before throughout the years by both spontaneous market crashes and huge pumps). Our investment approach is driven by wildcard scenarios like we are seeing today with COVID-19, where we aim to keep our exposure in the markets structurally nonlinear and convex. Our team are big supporters of Nassim Taleb and Universa Fund in Miami, US.
We see quantum computing bringing massive innovation and disruption to almost all industries, particularly financial markets. We believe in a future of leveraging quantum technologies to solve complex financial problems, filter noise and isolate features. Even in a world where classical computers succeed beyond all realistic dreams, quantum computers would still stand beyond them. Quantum computing is still in its early stages of development, however, compared to classical computers when solving specific problems, the advantage that it allows gives a definite market edge. We see one of the biggest problems in building robust trading strategies is the computational power - this is why models are usually so simple despite the financial markets being so complex.
We are aiming to leverage quantum computing for;
Portfolio construction and optimisation.
Optimised asset allocation for capital efficiency.
Risk management and variables prediction.
Construction of meta-data and meta-strategies.
Financial Data Supremacy
Global financial markets generate 7 billion data points every 10 minutes. In the future, big data and proprietary data science will mean nothing in obtaining an edge in the financial markets.
By combining advanced technologies like quantum computing and A.I. with on-ground human intelligence and insights, we aim to obtain an edge and achieve what we have coined as ‘Financial Data Supremacy’.
Advanced Market Technology Group (AMTG)
Often today funds and traders remain highly secretive in their market approach and strategies. We see relay only from in-house teams as a significant disadvantage. It is unrealistic to assume a small team can know it all. Alone we can do so little; together we can do so much.
Earlier this year we established Advanced Market Technology Group (AMTG) - an exclusive 50 member group of globally based top fund managers, traders, analysts, quants, investors and technologists that evaluate, analyze, develop and execute specialised trading strategies and investment theses for the ever-changing financial markets.
We leverage cross market on the ground intelligence to co-develop complex strategies hedged across different markets that are founded by 'Black Swan' driven events. AMTG members have industry secrets, market opportunities that are discovered and held by our members.
We invite members who are extremely active in the market and have kept consistent returns, being at the top of their field with unique market approaches. Our trading strategies are predominantly driven by volatility, convexity and asymmetry. We aren’t day traders, we look at capitalising on bigger market moves.
Collectively, our members have over 50+ years of experience in analysing and trading major financial markets. They have industry secrets, market opportunities. Our core expertise is spanned across discretionary trading, fundamental driven, technical, long-only, arbitrage, options, algorithmic trading and high volatility.
Member’s of AMTG actively focus on;
Co-developing complex trading strategies that hedge across different markets and aim to capitalise on the unique insights of our members and COVID-19 market volatility.
Sharing insights, market intelligence.
Co-executing and investing in any proposed or developed trading opportunities, strategies or insights.
Providing strong risk management and tail risk insurance hedging protocols that attach to proposed member strategies.
Just like with quantum computing, we see A.I. as being able to add significant value to our market approach. A.I. alone is still restricted in its ability to make decisions in complex situations and infer the meaning in the patterns that it sees - predicting the financial markets using AI alone can often end up with flawed analysis. However, we believe that the next-generation of investing and trading involves bringing together human insights, fundamental and quantitative approaches in the form of “evolutionary computation". We are seeking to combine Artificial Narrow Intelligence (ANI) with quantum computing for finely tuned decision making and leveraged computing power, helping to optimise our strategies and execution.
Our DIFC headquarters gives us access to an amazing closed-ecosystem in Dubai where brokers, rating agencies, wealthy family offices, high net worth individuals, and wholesale brokers are all nicely tied together. This unique free zone authority combines streamlined legal, regulatory and compliance infrastructure with capital efficiency.
In our fund, we have prescribed companies (Equivalent to ISPVs) that allow for different strategies and assets to be allocated through a unit trust structure and for valuable participants to be issued units of the trust. We aim to create unique structured derivative products (Hybrid crypto and traditional Asset-Backed Securities) and deploy these as dynamic active indices. Unitholders can then receive payouts and dividends from these indices depending on the growth of the index/ABS.
Further, our team also actively works with the UAE regulators to adopt legalisation of smart-contracts. Through our work, the creation of Assets Backed Securities (ABS) through the DIFC regulatory and legal infrastructure will increase efficiency dramatically.
We aren’t a start-up or new to the crypto markets/ecosystem, in fact, we have been involved heavily in the space in 2015/16. In 2016 we established Blockchain Partners Holdings (BPH) in Wollongong, Australia as a leading cryptocurrency research, advisory, proprietary trading and technology firm. BPH grew over 3 years (2016 - 2019) to include a team of over 20 individuals and expanded from Wollongong to also operate out of the Sydney CBD. We mostly focused on quantitative strategies, developing an algorithmic trading platform and sentiment analysis solution which proved to be highly correlated to the price action of both BTC and other top altcoins.
We run iteratively to keep things fluid and relevant, we constantly have our ears to the ground, listening to opportunities and moving quickly to adjust plans accordingly and keep our edge. With more than 10, 000 hedge funds currently operating globally, and the top whales taking up significant market share, it is virtually impossible to gain a unique edge without this mindset.
By 2019, the cryptocurrency markets had changed quite dramatically in both market structure, big players and also the sentiment. In order to keep our edge, we re-focused our approach to the markets and started to map out our Master Plan. We decided that we needed to look forward, to look to the future of the markets, rather than just taking them for what they are today. This is where we began our expansion to the Dubai International Financial Centre (DIFC) and established the Global Digital Assets Fund.
Just like our fund, our team doesn’t come from a traditional financial background or have a conservative mindset.
We are strongly involved in the emerging technology space, where we work with governments and other large private organisations to bring DeFi, legalisation of Smart Contracts, DAO governance and other new technologies into the public and private sectors. In fact, at the start of this year, we were appointed by the Dubai government to create an emerging technology roadmap for the region for 2020. We have a strong network of globally based companies, expert individuals and innovators with whom we collaborate. Also, we have ties to the space industry, particularly in terms of machine automation and machine economies in outer space.
Current projects and broadening our team
Currently, as part of our wider vision, we are at a stage of building our core team for our intuitional-grade crypto tail hedge fund. We want to build a long-lasting legacy and we are looking to work seriously with committed, smart individuals whose personalities and interests align with our company culture and future aims (i.e. We are not seeking individuals or groups who are looking for a comfortable 9-5 “job” or have the mindset of looking to attain monthly cash flows to pay bills).
This may come across as quite blunt and forward, however, we believe it is best that we are 100% transparent and up front from the beginning so that we can set clear expectations.
Currently, we are working on;
Developing an effective tail hedging approach for the crypto market.
Leveraging the regulators and new tech (smart-contracts) to develop institutional-ready hybrid ABS and derivative products (Deployed as an index under a unit trust structure).
Incorporating selected experts, quantum computing, evolutionary computation, and the latest crowdsourced metadata modeling for trading and portfolio optimization.
Growing AMTG through bringing on board select individuals, funds, companies, teams to co-develop cross-market strategies and risk management approaches.
We expect to build and maintain relationships organically and uphold new partnership opportunities with great importance, seriousness and respect. The character, personalities and influence of people that we work with is a big deal for us. Therefore, we only want to work with people who share the same values, similar desires and personalities - from experience, we understand how vital this is for maintaining strong and long-lasting business arrangements and ensuring that everyone is working towards the same larger vision.
If any of the above has made you interested or sparked some of your imagination and you see some level of potential, then we would love to continue our conversation and speak further.