The First Ever Quantitative Hedge Fund 100% Funded by Cryptocurrency Investors
Intellikon’s algorithms have accurately predicted markets for FX, Commodities, and Stocks. Now they are going after Bitcoin, Ethereum, and other crypto assets.
Five years ago, Intellikon discovered a unique quantitative model for trading Stocks, Commodities, Currencies and derivatives. This model has since evolved into a powerful set of predictive algorithms with the ability to time market moves before they happen.
We named this algorithm ‘The Prophet’, and we ran it through millions of market simulations to prove its accuracy. The results exceeded all our expectations, and it was then we introduced it to the world…
In 2013 we launched a demo website called “The Facebook Stock Predictor”. There, and on Twitter, we posted signals which accurately predicted the highs and lows of Facebook’s stock price, proving a 35% return over a 3 month period. The Facebook Stock Predictor was so successful, we witnessed major moves happen immediately after we posted trading signals. It was for this reason we had to take the site private.
Since then, Intellikon has quietly continued to post signals in key markets to document the algorithms’ ability to call trends before they happen
Here are some of the more notable predictions we have made to date:
April 13, 2014: At a time when Crude Oil was trading at highs of $102 per barrel, we called the top of what would eventually become the Great Oil Bear Market. We also warned of further downside on December 14, 2014 at $61 per barrel, and again on December 22, 2014 at $55 per barrel.
December 14, 2014: We posted a major Sell in the Euro/Swiss Franc currency pair, predicting that the Swiss National Bank would break its long standing peg against the Euro. 4 weeks later, the Swiss National Bank announced just that, causing the Euro to flash-crash against the Franc. This was a significant currency event in global market terms - so large it forced the broker FXCM to seek a $300 million bail-out for being caught on the wrong side of the market.
May 14, 2015: Gold was trading at highs of $1230/oz, but with conviction, we called a top in the Gold market. Gold then plummeted to $1070 - a 13% drop since our bearish call.
December 27, 2015: After calling the top in Gold, Intellikon's algorithms then called the bottom in Gold at $1070 per oz. Gold then climbed to a high of $1360 that year - a 25% gain.
February 24, 2016: After the S&P 500 index experienced a year of volatility (which we predicted), Intellikon's algorithms signaled upside in all markets including the S&P 500 which have risen to new all time highs.
March 2, 2016: We called the bottom in Crude Oil at $33 per barrel. Oil then hit new highs above $50 per barrel.
November 8, 2016: Based solely on a deep analysis of all markets, Intellikon's algorithms correctly predicted a Donald Trump victory in the US presidential election.
How is this at all possible? The answer will be saved for a future post, but for now we will say our quantitative algorithms are designed to read a very secretive market code - one which is followed by many large market 'whales' and has proven to be quite successful.
Last year, we reached a decision to start a traditional hedge fund based on our quantitative models, however a recent round of quant testing has compelled us to pivot toward a single market: Cryptocurrencies.
Today we are seeing the same predictive patterns occur in nearly all cryptocurrency markets - even more predictable than those seen in traditional markets. In 2017 we started testing our main algorithm by feeding it small samples of cryptocurrency market data. These tests have been quite positive, yielding some very encouraging results:
June 14, 2017: Bitcoin hit a new high of $3000 USD, but quickly corrected down to $2500. Many traders were buying the dip, but we posted a Bitcoin chart with the caption "this correction is just getting started". The next day, Bitcoin began to plunge 14% and reached new lows below $2000 USD - a 20% drop within days of our call.
November 19, 2017: After hitting a new high of $8000 USD, Bitcoin corrected 30%. At $7800 USD we declared "Correction over: The Bull Trend Continues..". Bitcoin then rallied to new all time highs.
November 28,2017:Bitcoin rocketed past $10,000 USD for the first time ever. Our algorithms predicted a dip, and it came true with a correction down to lows of $8600.
November 13, 2017: Ethereum was stuck in a very narrow trading range for months, prompting some investors to abandon it or short it altogether. However, on November 13th, with Ethereum at $317 USD, we confidently called an Ethereum upside breakout. 6 hours later, Ethereum spiked 6% to $336 USD. 5 days later, Ethereum gained another 8% to $370. 10 days later, on heavy volume, Ethereum soared to new highs of 40% from our initial call.
January 1, 2018: Bitcoin had reached new highs of $20,000 USD and was trading around $14,000 when we warned of further downside below $10,000 USD in January. 2 weeks later Bitcoin fell 35% down to $9200 on what would be known in the crypto community as "Back Tuesday".
To support this effort, Intellikon is launching a campaign to invite early stage investors to share in these rewards.
In Q1 2018 (date to be announced) we will launch a Seed Round of crypto financing to accelerate the project, and to fund the launch of our own cryptocurrency asset for investors to hold.
This seed round will be the first step in achieving our ultimate goal: To create the first ever Quantitative Hedge Fund 100% funded by Cryptocurrency investors.
For us, being fully backed by the crypto community is one of the most compelling rewards of this venture. For too long we have seen markets around the world dominated by large market makers, some who take advantage of smaller investors. If you have ever purchased a stock for fundamental reasons, only to see its price plunge a short time later, you already understand how this works today. We believe the time will come, sooner than some might like to think, when market wealth is truly democratized and placed squarely in the hands of people.
Details of the Seed Round will be released shortly. Early investors in this round will be the first to reap benefits once the full Token is launched. Our next post will outline all these details, so watch this space, follow us on Twitter, or subscribe to the Intellikon newsletter.
We look forward to having you on this unique journey - a first in cryptocurrency history