In a month where the crypto industry struggled yet again to stay positive and the Barclay Hedge Crypto Traders index of 41 funds showed an average loss of -8.3%, Algoz delivered profits in all four of its Quant Pro strategies. 

Our key strategy AiQuant Pro delivered 4.95% gains (net of all fees) in the month. Contrast those gains with BTC down almost -9% and ETH down -22%, the algorithm showed yet again it can make good trades in both bear and bull scenarios. 

Let’s look at some of the key events that shaped the Crypto Markets during August.

• The macro-environment shifted notably in early July as the US Dollar peaked and 10-year Treasury bond yields declined, while Gold steadily gained. Oil prices, often an indicator of economic strength, peaked in early July and have since dropped by 10%. These macro figures are now driving Crypto markets.
• August is shaping up to be the second-worst month so far for BTC ETF’s, seeing $320 million in outflows—surpassed only by April’s $345 million outflows. Although May and July saw stronger inflows of $2.1 billion and $3.2 billion, respectively, these gains proved unsustainable. Farside Data suggests total ETF outflows have now reached $18 billion.
• I like this analogy from 10x Research “While Bitcoin is widely regarded as digital gold, Ethereum can be likened to digital oil due to its essential role in powering decentralized applications and smart contracts, much like oil drives the global economy. Ether, the currency of the Ethereum network, is used to pay for computational resources and transaction fees, effectively serving as the “fuel” that keeps the ecosystem running”.
• However, when economies slow, Oil prices drop and that is exactly what is happening with ETH currently. As digital volumes slow ETH transaction income dies, making them less attractive.
• As a currency, Ether addresses are now returning to the 2023 lows, nearing just 400,000, well below their 3 year high of 600,000. The high was May 2021, 780,000. That of course means revenues on the Ethereum blockchain are declining rapidly.  Ether in April and June was trading at $3,725 compared to $2,500 (-33%) Interestingly, all of our Algorithms have been short ETH for over 2 months now. The analysis seems spot on and as our Head Trader Tom Coghen says “Dont argue with the Algorithm, let it do it’s thing”
• Risk assets sold off thanks to rising unemployment rates and fear that the US economy might not get a smooth landing. Amazing how the prospect of interest rate cuts is only a driver to upward market prices if it is not perceived to be because of an economy heading for recession. 
• With thanks to Markus Thielen from 10x Research for much of my comment. I would recommend subscribing to him for anyone who wants more granular detail around the Crypto markets. Ping me for a contact if you would like to know more. 
• And finally – if you weren’t sure if Digital currency was here to stay then this was final confirmation – McDonald’s announced on its official Instagram account that it has launched an altcoin called GRIMACE and launched it on the Solana network. I’m sure its named, after the face I pull when I look at what I just bought and compare it to the picture on the wall!!

So where did all that action in August leave Algoz and our ever expanding group of investors?

The answer is – in a very good place. 

• Our flagship strategy AiQuant Pro was up 4.95% , up over 20% YTD, with its Sharpe remaining high at over 3.5. This outperformed BTC by 14% during the month and the Barclays Hedge Index by 13%. The 3rd straight month AiQP has done that.
• Our Momentum Strategy returned over 11% and made it over 40% for the first 8 months of the year eclipsing the Barclays hedge by a whopping 30% YTD.
• Our Rock Solid, low drawdown  (Less than 3% in the last 20 months) Quant Pro was up another  1.6%
• We now have over 40 SMA’s. With new clients testing with smaller amounts currently I fully expect that to be almost $40 million by the end of Q3. Our target is to reach $100 million by the end of 2024. We have some very exciting developments coming in these next 4 months. 

Its been a very special 18 months for Algoz. We have created the only investment product that mitigates significantly, exchange and management counterparty risk, got rid of the cumbersome and opaque Hedge Fund structure to ensure total transparency with no commingling of funds; and delivered a strategy that in the last year has yielded in excess of 50% net of fees with daily drawdowns of less than 5%.

Our aim was to show investors that there was a “Safer, better way” to invest in crypto and every day we continue to make that our goal. Isn’t it time you took a closer look at Algoz?