OUR INVESTMENT PHILOSOPHY:

Insula's investment portfolio constituents and investment universe:
Our investment philosophy is characterised by high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and short term electronic trading tools.
Our automated investment system invests on the total cryptocurrency market. 
Our portfolio accounts for 239 different tokens (as of 17/01/2020).

24/7 cryptomarkets allow us to provide investors with 

a direct exposure to market more than 5.2 times superior than traditional stock market algorithmic trading.

Insula's computer brain trades 24/7 on a market that never closes.

Cryptocurrency markets and our thousands of bots never close an eye.

Traditional Equity Markets:

253 days

x6.5 daily trading hours

 

= 1665*  yearly trading hours

on equity markets.

*This is from 365.25(days on average per year) * 5/7(proportion work days per week) = 260.89 - 6(weekday holidays) - 3*5/7(fixed date holidays) = 252.75 ~ 253.Since 1985, the regular trading hours for major exchanges in the United States, such as the New York Stock Exchange and the Nasdaq Stock Market, have been from 9:30 a.m. to 4:00 p.m. Eastern Time (ET).  

Crypto Markets :

365 days

x 24 daily trading hours 

 

= 8760 yearly  trading hours

 on crypto markets.

Our Investment Philosophy:
We allow investors to determine which proportion of their total wealth (w) should be invested in crypto in order to hold an optimal overall portfolio that includes the right crypto-assets, in the right proportions. All the decision making process is done automatically by the Decentralised Autonomous Funds and Centralised Funds we design. 
Our investment philosophy is a compelling, computer-driven method for capitalising on crypto-markets. We deliver Alpha to our clients with programmatically executed solutions to crypto investors.
 
At Insula Investments we believe that the cryptocurrencies market is inefficient.
By operating on this market, Insula Investments both provides and benefits from a deeper liquidity, better price discovery and a tighter market bid-ask spread, all together with an increased certainty of execution.
 
Our investment process enables investors to get rid of any form of bias that hinder decision making as it is exclusively performed by investment bots.
 
Although people are subject to making biased decisions, computers are designed to only make rational decisions.
Both strategy and execution are performed by algorithms.
 
Insula Investment Management provides investors with cutting edge technology, combining the features of algorithmic trading and blockchain, that sets us apart from traditional assets that are largely arbitraged and exploited already.
 
Moreover, our strategies are running automatically 24/7, on a high frequency/low latency basis, with bots screening the cryptocurrency market that never closes. 
Both strategy and execution is performed by algorithms.
A computer brain generates 24/7 electronically-emitted mathematical signals that dictate the autonomous behaviour of our investment robots. Our robot act as electronic traders that interpret computer generated signals by continuously placing buy/sell limit & market orders on thousands of trading pairs.
We allow investors to gain a complete exposure to the crypto market by limiting  the risk concentration of investing only in Bitcoin and its numerous price proxies. In fact  price correlation coefficient tend to be high on the crypto markets and most exchange tokens  are still "mirroring" the price of Bitcoin.
 
This initial era of general consensus that Bitcoin was the ultimate proxy for the cryptocurrency market seems to be questioned and  we are seeking to tap the nascent diversity of the crypto-asset market.

Please note: Insula is running fully and has moved away from its purely research and experimentation stage.

Hence, from February 2020, each consultation and service rendered is now being charged and payable in Insula Tokens, including telephone consultations. (3000 ISLA/hour).

Thank you for your understanding- we remain at your disposition for any information you may need.

1

 

Determination of the investment universe: a given set of cryptocurrencies.

 

EXAMPLE OF AN INVESTMENT UNIVERSE :

 

A given set of cryptocurrencies i.e largest market capitalizations.

 

 

 

2

Using characteristics of each individual asset and the correlation amongst them, it is possible to compute the expected return and risk of any given portfolio.

We generate thousands of random portfolios.

Portfolios with maximum expected returns for each level of risk generate the Efficient Frontier.

 

3

 

On the Efficient Frontier, there is a portfolio which has the maximum expected return per unit of risk.

 This is the Sharpe Optimal Portfolio.

 

 

 

 

 

4

 

Obtain weights that constitute the Maximum Sharpe Portfolio.

5

 Perform backtest of such a Maximum Sharpe Portfolio with historical dataObtain annualised returns and Sharpe Ratio to confirm validity of portfolio .

 

6

 Perform backtest of such a Maximum Sharpe Portfolio with historical dataObtain annualised returns and Sharpe Ratio to confirm validity of portfolio .

7

Implement automated-autonomous& perpetual portfolio management.

PORTFOLIO MANAGEMENT : PORTFOLIO WEIGHTS ARE DETERMINED  BY OPTIMIZING RISK / RETURNS AND DIVERSIFICATION.

 

 

 

 

One portfolio is selected randomly within this universe of diversified portfolio.

 

Automated portfolio management bot  (strategy algorithm) interacts with trading bots (execution algorithms) to ensure minimal divergence between theoretical portfolio and current portfolio.

 

 

This optimization model is based on Modern Portfolio Theory (MPT). “According to the theory, investment’s risk and return characteristics should not be viewed alone, but should be evaluated by how the investment affects the overall portfolio’s risk and return.

MPT shows that an investor can construct a portfolio of multiple assets that will maximize returns for a given level of risk.

 

Insulα builds diversified portfolios of cryptocurrencies that are traded on a high frequency/low latency basis. 

 

 

 

 

-Optimal Sharpe Ratio (Risk/Returns).

 

S (x) = (rx - Rf) / StdDev (x)

Where:

  • X is the investment

  •  

  • rx is the average rate of return of X

  • Rf is the best available rate of return of a risk-free security (i.e. T-bills)

  • StdDev(x) is the standard deviation of rx

 

 

-Diversfication : portfolio made of crypto currencies that have minimal co-movements. Use output of a correlation matrix to the expected returns of any given portfolio.

 

 

Our strategies

Returns

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Risk 

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