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:
Sep 2021 Performance: 6.11% Returns
Sep saw markets whipsaw between a high of +10% to a low of -11% eventually crashing ~20% from peak. This turmoil was very bad for most traders but not for the Mudrex Fund.
Recent improvements in our portfolio selection algorithm have helped us pick a diversified set of algos to give steady returns. We ended up gaining 6.11% in a market that eventually went down -11% this month.
Performance till date: +82.04% in 12 months
Mudrex Treasury portfolio selection has seen a huge transition over the last year and all these learnings have been incredibly valuable for us. We originally started off by just using performance score and recent returns as a measure to pick algos.
In the last 6 months, we have iterated and built out an AI-based Optimizer that now looks at over 10 Bn Portfolio configurations and checks for an optimum diversified portfolio based on current market conditions. Here are the recent results.
|NAV 100 base||168.5||156.8||161.3||171.57||182.04|
We have steadily grown the investment amount from 4,000 USD in Oct last year to now 100,000 USD. We have had an average monthly return of ~5.47%. Returns over the last 10 months are 2% 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 Oct 2021
Our AI optimizer is vastly improved now.. We saw a large correlation across algos and hence have chosen to reduce the algo selection to just 5. Our portfolio selection methodology now evaluates over 10Bn 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.
|Start date||29th Sep 2021|
|Number of Algos||5|
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.