Market Overview
Once again the crypto bullish force has recovered in just 5 days half of a -25% BTCUSD drawdown saving the asset from what it seemed to be the first big negative return after 7 consecutive positive months, to having a small loss of -1.71%.
As we mentioned in our previous report, given our countercyclical approach, we expected larger price movements, thus hedging the downside risk was a priority which we fulfilled successfully.
Implied volatility spiked ~20% but didn ́t reach the levels we were expecting for selling OTM Put options, hence we kept our positions in the carry trade from perps and futures.
We are expecting a further increase in volatility, so we are extra cautious to the downside on each position that we are executing.
Performance
During April we mostly traded a carry trade that generated a net income of +0.97%
We may start implementing carry trades over alt-coins through a coded bot and we will wait for an IV expansion to re-enter into options.
Teks Alpha Performance (%)
| JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | — | — | 1.36 | 1.18 | — | — | — | — | — | — | — | — | 2.56 |
Teks Alpha Performance vs Index
Given the nature of Teks Alpha we have chosen as a Benchmark an Index composed 50% by BTC and 50% by cash.