FAQ
Algoz Quant Pro
Giving you maximum control and trading transparency whilst mitigating Exchange and Management Counterparty Risk – A better way to trade.
We create a “Walled Garden account” for your funds within the custodian. You have your own account details and you have complete visibility of your coins at all times. In addition, these funds are held in trust and are never the ownership of the Custodian. The exchanges being used to trade your account never take possession of your coins whilst trading, either. They simply recognise your balance and allow us to trade using that sum as collateral. Algoz, don’t get your coins, the custodian doesn’t get ownership of your coins and neither does the exchange we trade with on your behalf. This is the mitigation of exchange and Management Counterparty Risk.
Very simply, if the strategy you choose loses money then you lose money. And whilst we have won awards for our trading over the years there are no guarantees in trading that you wont lose. You simply have our track record and experience as your guide.
When you agree to the terms and conditions you agree to allow us to trade the coins on your behalf. Each quarter we send you an invoice as per the terms for management/performance in the subscription document that you signed. As we do not have access to your account this is the only way we can be paid, by you directly.
Yes, you can change to a different strategy once in each month, if required. There is no cost to change strategy.
You simply email us and we check to make sure you have no live trades, we then advise the Custodian and they return any or all of your funds back at any time. They are always your coins. In business hours, this can happen within the day, at weekends and our of hours it can take a little longer.
The most important point is – there are no guarantees. We have detailed, traded and modelled the strategies to show 5 years of performance but that is history and never a guarantee of future performance. So please be aware, when you trade, your funds are always at risk. The only way to guarantee no loss ever, is to hold coins on a ledger, where they earn nothing and even then you are always at risk of forgetting how to access them or that the ledger might be stolen. We have done everything possible within this product to mitigate risk, not just in our unique custody model but also the specific strategy that accompanies this product, where we have looked to find a very workable D/D and still provide a reasonable earning potential. At Algoz we are a risk averse company who trade in a volatile asset space. The volatility gives the opportunity to create better than average returns but it also increases the risk exposure. If you are not comfortable with volatility in your investment then the crypto space is not for you.
We have chosen our Custodians because of there robust security measures and the fact that your coins are stored in cold storage which virtually eliminates all hacking possibilities. Both are also backed by huge multinational banking corporations.
Your coins are never locked, you can withdraw any or all of your funds at any time during our trading office hours.
The best way is to speak with your financial advisor, if you have one. Within our fact sheet every aspect of the strategies is explained. Risk/reward profile, the markets they trade in and the Sharpe Ratio achieved in each month. You can also meet with our Head Trader to understand the strategy make-up if you wish.
Trading started in 2017. We started off as one of the earliest market makers in this market and in 2019 moved our focus to strategy trading in 2019. We have been around Crypto markets as a very early adopter. We understand Crypto and are well connected.
Firstly, because the high profile failures last year of FTX, Voyager and Celsius, where people were actively trading other people’s coins, can not happen here. You retain the beneficial ownership of your coins and that is vital. Secondly, Algoz have been testing the strategies both in theory and with their own money for the last 3 years. The strategies don’t produce positive results every month but if you look at the trading record it’s extremely strong. We also won three Hedgeweek awards for our trading during 2022 – the most difficult year most have seen.
That’s the beauty of Quant Pro. As we trade in your account you can see every trade as it is settled and you have real time information about your funds. No waiting until the end of each month and an Administrators report. Real time feedback into your account which is visible to you at all times.
In our pre-trading agreement we describe in the fund you have chosen, exactly where we will be investing for you. You will see the trades and you can confirm they are always within the scope of our agreed strategy.
No we did not. Although we work in a high-risk market, we are very risk averse and conservative with our investor money. Obviously we had traded with them in the past as they were one of the biggest but as we spotted the first signals in the market that others didn’t, our funds were withdrawn from FTX, completely prior to the collapse. In fact it is because of FTX that we created this no Exchange Counterparty Risk product. So that can never happen again to people invested in Quant Pro.
Depending on the route you choose, in essence if you have all the documentation to hand it can be done in about 3 weeks. We need to do a Compliance check, source of funds and KYC on those authorised to trade the account. We maintain the highest standards of best practice at every level in the creation of our products and this is your assurance of our professionalism in the protection of your assets.
Whilst our systems trade the strategies 24 hours a day 7 days a week we also have oversight on trading as well. If market conditions or one of our trades slips outside the risk parameters we have described then the team member will alert the Head of Investments who will make a decision to cease trading completely, liquidate the position, continue to run or continue to closely monitor, in the best possible way to mitigate losses. We have final control over the system and use it when necessary. Like when FTX went down and we withdrew before problems were known. We didn’t like the signals that we were seeing and liquidated our positions.
Because Crypto is still a very new market it still “suffers” from enhanced volatility, ill-liquidity and inefficiencies, which create risk but on the other hand produces a lot of opportunities with very big rewards, which led BTC to be the top performing asset in 7 of the last 10 years. Whilst Crypto is in its nascent years with less people in the space, currently opportunities still exist and we can use them to our advantage. It may be that in 5 years it becomes more difficult to spot opportunities but for now, as volume grows, we can use it to best effect and put your coins to work.
The biggest players in the Crypto derivative space are Binance, OKX, Deribit, etc. In reality we have accounts with numerous exchanges, all of those who accept our risk solution. For Fiat we route through a Prime Broker who trades right across the huge landscape of futures and options.
Primarily because it is so new and there is so much money pouring into it. When prices go up dramatically, people take profits, when a company, like FTX goes broke, people withdraw. It is perfectly normal in an emerging market and this is the scenario in which sophisticated strategies that can take different positions in the market (long/short) excel. Volatility is great for strategies like ours.
You must be a Qualified Investor if you are from the US or a Professional Investor from the rest of the globe and you must attest to that on signing the agreement. Companies who invest must also declare that they are professional investors in financial instruments of this type.