01

strategy

STRATEGY 1:

DIGITAL ASSET
OPTIONS TRADING

Leverage the Principals’ deep  experience and expertise in  options and derivatives  markets – which spans foreign  exchange, interest rates, VIX and digital assets – to deliver  uncorrelated alpha via the  application of sophisticated  institutional grade options  trading techniques to digital  asset options.

Active player in the digital assets space, ranked as a top 5 taker and top 15 maker on Paradigm block trades for BTC and ETH Options

Relative value options trading:

  • Volatility term structure, smile and surface trading
  • Cross-coin volatility spread trading
  • Event driven relative value
  • Further opportunities as the market develops (e.g. Barrier Options, Strikeless and Correlation Products)

Absolute value volatility trading:

  • Use proprietary metrics and active relationships with dealers to interpret market flows as well as historical backtests to find opportunities to pick up mispriced optionality

Structured Convexity:

  • Utilize the option markets to structure highly convex delta positions with attractive risk-reward profiles

Strategy 2:

SYSTEMATIC
DELTA ONE

  • Trend Following
  • Mean Reversion
  • Exchange Segmentation
  • Regime Clustering
  • Seasonality

Fat tails of digital assets make it an ideal market for disciplined Trend Following strategies:

  • Run systematic trend following models in BTC a n d ETH . These models can be denominated in USD or BTC.
  • Proprietary risk management rules lead to a disciplined approach to trend following trading. The resulting drawdowns are far lower than vs passively holding long physical BTC exposure.

Orthogonal has a suite of additional systematic strategies with proprietary signals ranging from funding rates, exchange segmentation, and high frequency seasonality

Performance and high-level overviews available upon request

Strategy 3:

CEFI AND DEFI
ARBITRAGE

  • Statistical Funding and Basis Arbitrage
  • Yield Farming
  • Cash and carry arbitrage
  • Rates relative value trading
  • Cross-exchange arbitrage
  • Quanto arbitrage

Inefficiencies inherent in the digital asset markets  create multiple opportunities for arbitrage and  relative value trading strategies to be systematically  implemented.

This strategy has a broad scope, with both automated and routine use cases as well as special situations. Some include:

  • Trading BTC Quanto Perpetual Swaps /Futures vs the USD Equivalent Product to create a synthetic covariance product
  • Diversifying into several leading DeFi yield farming protocols to earn attractive carry, while containing protocol risk
  • Trading the futures curve, for example earning 8hr funding on the perpetual swap, while getting paid rates further out in the futures curve to express a positive carry bullish view