Panxora AI wins out over human traders in Bitcoin bull and bear markets

Panxora AI wins out over human traders in Bitcoin bull and bear markets

Share:
  • Human traders at crypto hedge funds suffered heavy losses in 2018
  • Panxora’s AI technology adapts and thrives in difficult market conditions
  • Achieved over 120% returns in 21 months

5th June, 2019:

In 2018 the median discretionary crypto hedge fund was down 63%[1]. In fact, throughout last year, the market seemed to do everything it could to empty traders’ pockets. Rather than a steady decline, which could at least be traded on the short side, we instead saw a never-ending series of switch backs.  This kind of market behaviour creates challenges for human traders who see these patterns and frequently make decisions based on greed or fear.

However, for Panxora’s AI models, these patterns have provided more opportunity than threat. Its artificial intelligence models have shown a remarkable ability to beat human rivals. The models learn to identify the patterns created when human traders panic, acting dispassionately upon those signals to take profits which may be invisible to others.

Panxora’s models have shown significant outperformance both in terms of overall return and risk adjusted returns. In the 21 months from launch, they have generated a return in excess of 120% and a Sharpe Ratio exceeding 2.0. This compares to a long-term Sharpe Ratio of 0.79 for Berkshire Hathaway, Warren Buffet’s investment vehicle[2]. The results have been remarkable, even through the bear market. During the period of decline in 2018, the models outperformed the overall Bitcoin market and limited the impact of the fall in price.

Gavin Smith, founder and CEO of Panxora and one of the AI architects, said: “These results show the level of sophistication AI can achieve in crypto hedging strategies. Though the models learn and adapt over time to keep in step with changes in the market, the goal to capitalise on price movement remains fixed. The models are also written to guard against any downturn. They are built to retain as much value as possible when the market drops or moves sideways.”

Following the success of this proprietary technology, Panxora has launched the Active Treasury Management service. The service runs through Panxora’s Licensed Cayman Islands hedge fund. It professionally manages the subscription capital token businesses raise during their ICOs, IEOs and STOs.

“Tokens mostly receive their subscription capital in cryptocurrency, leaving it subject to price volatility,” states Marcie Terman, Panxora COO. “The Active Treasury Management Service effectively hedges this capital to protect it against a cryptocurrency price collapse, but the models are also trained to identify market inefficiencies that can generate excess returns. These extra returns can be used by founders rather than dipping into their main funding for things like paying for exchange listings.”

[1] PwC and Elwood Global Crypto Hedge Fund Report 2019

[2] Financial Analysts Journal 2018

About Panxora:

Founded in 2014 under the name First Global Credit, Panxora has always aimed to provide cryptocurrency owners the same opportunities as fiat currency holders have to generate revenue from their assets. With significant experience both in traditional financial and cryptocurrency markets, Panxora’s co-founders brought their first service – crypto backed stock and ETF trading to market, followed shortly by its currency exchange and the launch of the investment collective, AICoin which uses proprietary AI to trade the cryptocurrency markets. The company’s development team continues to innovate new products and services that will provide advantages to its customers. This includes the public launch of Panxora Crypto I, a cryptocurrency focused hedge fund. This and other services have been designed to give crypto-asset holders ever more opportunities.

With more than 30,000 customers in 35 countries, Panxora is the crypto-community’s trusted partner to meet financial goals and put crypto-assets to work.

Those interested in learning about how the TMS can benefit their token should contact the Panxora team at +1 345 769 1857.

Contact: Jenny Corlett
Aspectus Group
+44 (0)207 092 8127
[email protected]

[1] PwC and Elwood Global Crypto Hedge Fund Report 2019

[2] Financial Analysts Journal 2018