Core Strategies

Different trading rules and strategies we use to manage portfolios properly.

Overview: four strategy types

Our framework builds on top of four categories of trading strategies:

Trading signal/strategy	Returns Skew	Examples
Momentum	Positive	Trend-following strategies that profit from sustained directional moves
Breakout	Positive	Volatility strategies that capture range expansions
Basis (Carry)	Negative	Yield-harvesting strategies that collect funding rates and staking yields
Mean Reversion	Negative	Counter-trend strategies that profit from overshoots

Skew is a statistical concept that we use very often in finance. Where an asset has a higher chance of a large down move than an equivalent up move, it said to have a negative skew. However, If the large up moves are more likely, then an asset has a positive skew.

By combining positive and negative skew strategies, we create a more balanced return distribution. Why diversify across strategy types? Because different strategies perform in different market regimes:

Market regime	Performance
Trending market	Momentum and breakout outperform
Range-bound market	Basis (Carry) and mean reversion outperform
High volatility	Breakout captures expansions, mean reversion fades extremes
Low volatility	Basis (Carry) strategies harvest yield, while momentum underperforms