Hello, everyone. In our last video, I gave a review of the recent events in crypto markets. And today, I want to share with you how our algorithmic quantitative approach to risk management performed to EndoTech clients in the year 2022.
Let’s start with a short review of the market itself. From the very top, on November 10th, 2021, until today, July 7th, 2022, the market went from nearly three trillion to the very bottom of 820 billion and resulted in 72% down move. If we’re talking about year 2022, from January 1st to July 7th, 2022, it went from 2.167 billion to 905 billion. That’s resulting in 58% down move.
So let’s see what our algorithm did. Let’s start with our winners. Our winner is Ethereal Alpha Leverage 10 algorithms. One of the risky strategies that we have, and uses up to 10 times leverage in trades both long and short, which is of course not available to US clients and other countries under futures regulation, that made an amazing 821% in profits. This strategy relies on a fixed capital money management style. Meaning that it always uses the same capital, regardless of whether it won or lost in the previous trading period.
This is the most conservative money management style. The maximum loss for this strategy is 30%. I would like to show you a few examples of how it happened. Let’s look together at this chart and see that we made several short moves together with the market, and we were fairly successful to catch the very top and very bottom of the move. Also, what is interesting is that during the upper move, kind of the pullbacks, we also took the profitable trade to the long positions.
Our second winner is 4Hour EOS Alpha Leverage 4 strategy. Again, meaning that it goes up and down together with the market. It can be long and short. And also, that it’s using leverage up to four. It starts with two and moves up to four times the leverage. This year, it produced 350% of the profits. And then, our third favorite is 4H XRP Alpha strategy that does not use leverage. And this year it made 30%.
Let’s now look at the beta strategy. Beta strategy means that we are using long-only trades, and this style applicable to any investor in the US or any other country. For example, our strategies of US beta made 7%, even though US itself lost money in 2022. When the market is bearish, is severely bearish as it was in 2022, of course beta strategies are challenging. It’s very hard to make money by going bullish in a bearish market. So while Bitcoin was very bearish in this period, and as we saw market cap resulted in drop of 58%, our beta strategy resulted in 15% of loss over this period.
And our final, the worst strategy that clients experienced this year, was our Ethereum Beta strategy, that resulted in 25% loss. It’s important to understand that this was the leading strategy in other years from 2019 and through 2020 and even ’21. Each of them were resulting in hundreds of percent, because we were catching the bullish moves. Now, what’s interesting is that even during the bearish periods, this strategy helped us to get better results than the market.
While our results were sometimes great, sometimes satisfactory, our biggest excitement comes from the new version of AI Aeon strategies that were released last week. Version 16. This version takes care of all market situations and performs over three times better than the previous versions. Let’s look at what it did for Ethereum last year. You can see the beautiful down moves, the beautiful up moves that we caught very much at the beginning of the moves, and very much at the end of the moves. So while everybody, including us, expecting some type of winter in crypto markets, we are still very positive about what will happen with our strategies, with our result. So let’s not forget about risks, but let’s wish the profits in upcoming months to all of our clients. Happy winter and happy upcoming spring.