Trading strategy

As a leading company in building algorithms based on crowd wisdom, collective intelligence, and super forecasting, Cindicator will be signed on as a trading strategy provider during the first phase of Emergence DAO. The most relevant algorithm developed by Cindicator that aligns with the nature and goals of the DAO is SuperForecasters Emergence Bitcoin Strategy.

The trading strategy is based on the predictions of the beehive. Each bee brings a unique view of the market. Together, they make up the hive generating an accurate view of the market. The strategy executes one trade a week based on that view.

The strategy sources alpha solely from over 179,000 decentralised analysts registered on the Cindicator Collective Intelligence Platform. For every analyst, the Cindicator team examined the front-tested P&L (as if we created a trade based on each forecast) and selected the analysts with consistently positive performances and relevant risk tolerance. The top 0.02% analysts with long track records (no less than 26 weeks) are termed – SuperForecasters or Super Bees in Emergence DAO.

The strategy holds USDC and forms short-term Bitcoin long positions, maintaining a 1:2 risk/reward ratio seeking to catch local upsides of the market. On a weekly basis, Cindicator receives hundreds of predictions from analysts regarding the Bitcoin trading range that will occur in the next 7 days. After collecting all answers for Bitcoin weekly ranges, the Cindicator’s algorithm rearranges the list of top analysts and determines entry and exit levels for the trades based only on the SuperForecasters. The strategy’s goal is to generate profits in USDC.

Performance

Parameters

Return in USD (since inception): +244%

Maximum drawdown: -16%

Sharpe Ratio: 2.09