AQTIS Launches V2 of its Quant System, further improving performance

Team AQTIS is delighted to announce the successful implementation of Quant V2, a step-change in the performance of our quant systems.

This new platform builds upon the foundation of our previous version while introducing several enhancements designed to maximize trading opportunities and optimize risk management.

What is Quant Trading?

One of the core elements of the AQTIS ecosystem is our Quant Tech. This unique approach to generating yield has been tested and honed using billions of data points across several years. But what is it and how does it work?

Quant trading is trading based on quantitative analysis. Quantitative analysis refers to methods used to understand the behavior of financial markets and make more informed investment or trading decisions.

In essence: it’s the combination of mathematical and statistical techniques to analyze financial data.

At AQTIS, we use quantitative analysis to build models based on the relationships between the data we gather. These models help us to detect when to enter and exit trades and optimize the position size.

It’s a systematic approach typically found in large financial institutions that uses mathematical models combined with both historical and real-time trading data to make trading decisions, powered with our AI/Machine Learning algorithms.

It’s a continuous improvement approach, meaning the systems are always learning and looking to make improvements on each trade.

Key Features of AQTIS Quant V2:

Expanded Trading Universe

Unlike its predecessor, which was limited to just 20 cryptocurrencies, AQTIS Quant V2 now trades across the entire universe of crypto assets. This significant expansion allows for greater diversification and the ability to capitalize on a wider range of market movements and opportunities and help to remove our bias in picking coins manually.

Proven Trading Strategies

AQTIS Quant V2 continues to utilize the time-tested strategies that have proven successful in various market conditions:

• Momentum: Capturing gains by following the strength of price trends.
• Breakout: Identifying key levels where prices are likely to break out into new trends.
• Trend Following: Riding existing trends to maximize profit potential.
• Mean Reversion: Exploiting price deviations from their historical average to identify potential reversals.

Advanced Sizing Techniques

One of the standout features of AQTIS Quant V2 is its sophisticated approach to position sizing. The system employs an in-depth analysis of volatility and risk to determine the optimal size of each trade. This ensures that positions are adjusted dynamically based on current market conditions, enhancing both profitability and safety.

The main focus was to test the robustness of the system in an end-to-end view. The system has run smoothly for the last month including the elastic AWS migration that was also finished in this quarter.

These big changes involved some additional changes:

• Automated ML process to the new Quant system capable of estimating the risk and potential risk of the operations.
• AWS elastic implementation and testing.
• Improve data platform capabilities to trade all of the crypto universe and not only the main coins.
• Implement an automated end-to-end monitoring system.

Performance

We have back-tested the system from January 2022 which was the start of a long weak period for cryptos. The next graph shows a simulation of Aqtis Quant V2 for a stable TVL to easily track the Quant evolution.

Assumptions:

1. We are daily detracting 15% APY from the quant funds to pay the LST yield
2. We are not doing auto compound of the quant funds

The graph clearly shows the robustness of Aqtis Quant V2 even in bad crypto periods like 2022.

Aqtis Quant V2 has been running since the commercial launch of our LSTs on June 3, 2024. Even though the last month was a very bearish one, our quant systems have been outperforming the broader markets by some margin.

In the below chart, covering the LST launch, our Quant V2 has helped our systems avoid the sizeable decline in the price performance of Bitcoin and Ethereum and we remain positive in the period.

This period perfectly represents the Aqtis principles, remain solid in bad market moments and then boost with the market in the good ones.

As we continue to refine and improve this model, its performance will continue to improve with it.

Questions or Feedback?

As always, we’re eager to answer all your questions and consider your suggestions. We’d love to hear your thoughts, so please share them in our Discord.

That’s all for now. Stay tuned for more exciting updates, and we’ll catch you in the next one!