January 2023

TLDR;

• Momentum ETH/BTC strategy gained 30.1%
• Trend ETH/BTC strategy gained 28.9%
• Both strategies were able to capture almost all of the upward movement in the market

Strategy token prices can be seen here.

January marks a positive month for both of the strategies which gained significant value due to rising market conditions. The strategies were well positioned before the rise in market prices and rebalanced quickly into risky assets when new funds entered the strategies.

It was expected that the strategies cannot easily outperform in rapidly rising market conditions but we see the positioning of the strategies during the bull phase as a very positive sign. Given that the main aim of the strategies is to reduce volatility and help in falling market conditions, it is always a risk that such strategies might not be fully invested during unexpected rallies, but this was not the case for our strategies. 

Our general expectations for the coming months is to mostly see sideways markets but given the extent of the rally in January, also certain pull-backs can be expected. Both of the strategies are designed to help to soften the pull-back, if such events should emerge.

You can find our strategies on Sommelier.