FAQ

Who are we?

AlphaGrow is a proprietary algorithmic trading firm specialized in cryptocurrencies. Our team is composed of passionate engineers who combine a deep expertise in both trading and information technology, with years of professional experience in both fields.

We use cutting-edge methods from mathematics, machine learning and software engineering to trade on cryptocurrencies following a unique data-driven decision-making process.

We rely on experienced risk managers who carefully supervise our fully automated trading system, which is hosted on a robust cloud infrastructure.

How many trading strategies do we have?

We seek to achieve high quality returns. This is only feasible by utilizing a diversified portfolio of systematic and quantitative strategies.

This is the reason we currently have in production three groups of uncorrelated strategies: intraday mean-reversion strategies, intraday trend-following strategies and real-time blockchain analysis strategies.

All our strategies are running 24-7 on different groups of underlying, which allows us to capture day and night the best trading opportunities available in the market.

What is the high-level rational behind the 3 strategies?

The first group of strategy relies on the mean-reversion principle. It detects cryptocurrencies for which recent returns have been abnormally poor and that are very likely to revert to a normal state, involving a profit opportunity.

The second group of strategy relies on the trend-following principle. As with most professional traders, we trade with the trend. Our algorithms detect cryptocurrencies that are about to make a significant move to the upside and get in early on the wave. Once the trend shows weakness, our algorithms exit the position and look for the next wave.

The third group of strategy is based on real-time blockchain analysis. Every blockchain transaction is transparent, as is the amount of computational resources powering the network. We analyze these large datasets in real-time to extract valuable patterns that we then translate into trading signals.

What is our track record?

It is natural to look for a track record when making investment decisions.

We prone transparency and this is the reason we offer our investors the possibility to view our performance that is tracked in real-time at this link: https://alphagrow.io/performance_dashboard.html

You can also contact us at contact@alphagrow.io if you would like us to provide you with a track record issued by a third-party trading platform where our performance is also tracked in real-time.

What type of exit strategies do we use?

When required, we use the standard take-profit and trailing stop-loss on the top of the signals issued by our trading strategies.

When used, exit levels are continuously optimized using an unsupervised machine learning algorithm, which is mostly taking the latest market conditions as input: for example, under a high volatility regime, both the take-profit and trailing stop-loss will be automatically adjusted to be bigger to account for wider market movements.

How do we select the cryptocurrencies on which we trade on?

To guarantee no slippage effect (that could be linked for instance to the use of market orders), our strategies are only running on the most liquid cryptocurrencies quoted against USDT and BTC.

We constantly monitor the liquidity, the volume and the bid-ask spread of the cryptocurrencies we trade on.

Have we backtested our trading strategies?

We have rigorously backtested and stress-tested all our strategies over the past 4 years of historical data using our own proprietary backtesting engine.

You can contact us at contact@alphagrow.io if you would like to receive the detailed backtest results.

Which historical data do we use to research, develop and backtest our strategies?

We have designed an in-house data collection system that collects, cleans, aggregates and structures market data from multiple cryptocurrency exchanges.

If you are interested to get the historical data (for research or backtesting purposes for instance), we offer for free some data sets that you can download on our website at this link: https://alphagrow.io/data_sharing.html

How do we handle risk management?

The risk management aspect is just as important as the strategy itself: even a profitable strategy can fail, if for example too much risk is taken at some point on a single trade.

We never place too much risk on any single trade. We ensure that our risk is well diversified across multiple strategies that are issuing daily hundreds of trades. This naturally reduces our risk and gives us the best chance of success in the long run.

Do we lose trades?

There is no trading strategy that can escape a period of losses, commonly referred as drawdown.

Having backtested our strategies over all historical data available to us, we can expect drawdowns to happen from time to time.

How many orders are issued per day?

Our strategies issue on average 100+ orders per day.

Are we currently working on the research of new trading strategies?

We are still considerably investing in the research of new trading strategies as we are convinced that R&D is the key to remain at the forefront of the fast-moving cryptocurrency trading industry.

Our research is driven by a highly disciplined scientific process. We work continuously to expand our predictive models, diversify our strategies, and reduce our trading system latency.

We tackle new ideas with a critical mindset, challenging every outcome to avoid pitfalls, making sure that trading ideas become strategies, and strategies become results.

Do you have any questions?

Please feel free to contact us at contact@alphagrow.io.