Countinghouse: smart Crypto-Fund
The arrival of large investors in crypto-financing becomes a reality. It cannot be said that the institutions did not penetrate this market, but for the first time it was officially announced the creation of a direct hedge fund.
Reduction in volatility in the fiat market over the past two years and large fluctuations in the exchange rate on the cryptocurrency market have attracted the attention of Countinghouse.
To test its assumptions the fund decided to invest a small amount of $ 50,000 per year in the cryptocurrency market and check the effectiveness of the algorithms for fiat on the new asset.
In the process of testing it turned out that the team needs to change the models that manage transactions. In addition, it was required to introduce additional capital in this direction to obtain greater efficiency.
After a year the result, shown by the new strategy, was more than 8 times higher than the yields for fiat during the same period of time.
The development of a new model specifically for the cryptocurrency market, and the income that it was possible to get thanks to its use prompted the Countinghouse executives to create the world’s first crypto-hedge fund for direct investments.
Another important reason for the project developers considers lowering the entry threshold for investors. To start working with a traditional fund in the foreign exchange market, you must make an initial contribution of $ 300,000.
Cryptocurrency is a more democratic asset and using an internal fund token allows the investor to participate in it with an amount up to $ 1000. And it has a flexible allocation of funds, he can decompose the total amount of several assets. It can quickly change the structure of investments, sell or buy a cryptocurrency.
Countinghouse declares 3 main goals of its activities:
- high returns for investors;
- minimization of risks through mathematical algorithms;
- confidentiality for investors.
The authors of the project see the additional task as creating conditions for legitimizing blockchain as a viable investment asset and as an alternative to fiat money.
The entire capital of the investor immediately enters the fund’s accounts. This is due to the fact that Countinghouse already has a well-established business and infrastructure. To date, 90% of the fund’s structure can be immediately switched to work on the cryptocurrency market.
The investor can flexibly approach his portfolio: freely buy and sell the cryptocurrency in any available quantities which can hardly be imagined when investing money in traditional funds.
The fund places several transactions at once using a direct hedging strategy. This is done to compensate for market irrationality and sudden change of trend.
In such conditions the initial transactions bring a loss, but during trading, thanks to the algorithms used, subsequent operations close these losses and bring profit.
The size of each lot is calculated on the basis of the current capital of the fund. This gives a mathematical effect aimed at growth (compounding). That is, the profit from each transaction is again invested in new operations which allow you to confidently increase revenue.
The fund uses both short and long transactions. Their ratio is about 50/50.
To obtain a high income, mathematical weighting of the portfolio with negative correlation is used. In this case, the currency pair is traded on its own algorithm.
At the same time, there are mathematical methods that control the entire portfolio of the investor. This means that when one pair loses money the other earns, thereby compensating for the loss.
All transactions are carried out on the basis of mathematical calculations with the complete elimination of the influence of human emotions.
At the same time, the fund is not a trading platform and uses brokers to facilitate trading on exchanges.
Thanks to the registration of the company in the Seychelles, an unlimited transfer between fiat and cryptocurrency is possible for investors.
CHT tokens conform to the ERC20 standard and are based on the Ethereum platform.
Tokens are used as tradable units of the fund. All investments are calculated through this tool.
Thanks to this approach, any investor can instantly estimate the size of his capital. It is enough to know the exchange rate of CHT and multiply it by the available number of tokens. In traditional funds such a calculation is impossible. This requires much more time.
The CHT token will be sold on the crypto-exchanges.
At the moment already implemented more than 5 million tokens. The buyers were the permanent fund investors. The amount for the start of the project is already available.
ICO will last from April 3 to June 12, 2018.
The team plans to spend 60% of available funds on trade, 30% on bilateral arbitration, and 10% on crypto-debt obligations (loans). Approximately 1 time per quarter, stakes can be redistributed.
The cryptocurrency hedge fund Countinghouse is an interesting and promising project.
At first, it is the first investment fund that works with cryptocurrencies. The client does not need to make transactions on the stock exchange and choose trading strategies. All this will be done by the fund’s specialists.
Secondly, the fund announced a very high yield of 600%. In Whitepaper it is reported that the result is possible in 1000% of annual profit under current conditions. Over time, volatility on crypto-market will decrease and the income in 800% is predicted.
Third, the fund uses mathematical models to reduce trade risks. To eliminate possible problems with finances, he stores fiat in the most reliable banks in the world and cryptocurrency in cold purses.
Fourthly, the team of the fund is professional traders with 10 years of experience.
To learn more about the details of this project, as well as to participate in the purchase of platform tokens, visit the official website https://www.countinghousefund.com/ico and read the whitepaper: https://www.countinghousefund.com/whitepaper