Mudrex Treasury Fund Aug’21: 6.35% Returns

When we started building Mudrex in Oct 2018, we just wanted to solve our own problems. Automating trading was hard, finding quality strategies and signal providers was difficult, and the crypto world was filled with scams. We wanted to build a trustworthy, reliable, and scalable platform that just works and helps us grow our money.

2 years from that point, in Oct 2020, we made our first investment from the companies books. We paper traded for 6 months, ran countless backtests, and detailed risk analysis. After all, this was the company’s money, not something we could just afford to play with. Our literal survival depends on Mudrex having funds till we monetize at scale.

We started with a modest sum of 4000 USD and paid all the fees any other user would need to pay, but it marked an important point in our journey. Today we are at a 100k investment (that is 50% of our treasury size)! This is the first of many products we plan to offer in the future under the ‘Mudrex Fund’ umbrella. Over the next year, we plan to scale this up to ~20 Mn USD. Performance details below:

Aug 2021 Performance: 6.35% Returns

Jul saw markets recover just a tab bit. This momentum was well captured by both the Mudrex coin Fund and USD Fund did well and the Mudrex treasury fund continued its steady performance.

Our USD Fund saw a growth of 5.5% while the Coin Fund was up by 13% in USD terms. The overall value of the portfolio was up by ~6.35%. Diversification came to our rescue and saved us from what otherwise could have been a disaster.

Another significant factor in lower returns was slippage during order placement. Once corrected it would potentially increase returns to ~8%.

Date range	30th Jul 2021 – 30th Aug
Initial Value	99932 USD
Final Value	106279 USD
Returns	6.35%

Performance till date: +71.57% in 11 months

We started with paper trading to identify core strategies. 70% of the investment always goes into strategies that have a long performance history and have been well tested. This core is used to offer steady, month-over-month, consistent gains. The remaining 30% is distributed among less proven strategies that have shown a burst of growth in the recent past.

	Apr’21	May’21	Jun’21	Jul’21	Aug’21
Initial	100100	99200	99808	97425	99932
Final	99291	85845	92891	100235	106279
Returns	-809	-13355	-6917	2810	6347
Returns%	-0.81%	-13.46%	-6.93%	2.88%	6.35
NAV 100 base	194.7	168.5	156.8	161.3	171.57
NAV returns	94.69%	68.47%	56.8%	61.32%	71.57

Last 5-month performance

Investment History

We have steadily grown the investment amount from 4,000 USD in Oct to now 100,000 USD. We have had an average monthly return of ~5.41%. Returns over the last 10 months are 15% lower than the expected return of ~7% per month (based on 6-month paper trading history) mostly because of slippage and execution errors.

Portfolio setup for Sep 2021

We have now taken a very different approach to portfolio building and have added more rules. We saw a large correlation across algos and hence have chosen to reduce 7. Our portfolio selection methodology now evaluates over 5Mn combination of portfolios across all algos optimizing for profit/drawdown. Post that we do a manual review and remove algos that are otherwise untested. It automatically decides weights on algos as well not, smartly choosing algos that balance each other out.

We have now removed our coin fund because we expect the next month to be extremely sideways and choppy. Goal is

Start date	30th Aug 2021
Total Invested	100000
Number of Algos	7

Transparency is a value we strongly believe in. We think that more people can benefit from our analysis and hence we are opening up our entire portfolio for everyone to look at and get inspired from. We hope this helps users find the best options for their investment.