We are choosing coins to trade from the entire universe of available coins. They are not all traded on the same exchange and some do not exchange for fiat currency. Others exchange for Bitcoin but most exchange for Tether. We plan to build an automated system to execute trades. This will necessarily require establishing accounts at all the needed exchanges and setting-up protocols that allow the electronic exchanges of fiat or Tether or Bitcoin to transact with existing exchanges in
the various coins the same way one would buy and sell shares of stocks.
This exchange is already in development, ready for integration with TT: our partners the CCEG Blockchain UN Lab are developing a decentralized secure ClassicDelta and Microshare Exchange, a classic and forked Ethereum decentralized exchange. The Microshare Exchange allows for a non-regulated, non-financial, utility token exchange to be setup.
Classic Delta is the first exchange that works with ERC20 tokens from both the classic and forked Ethereum networks and promotes positive social behavior by applying zero or reduced fees to selected social coins.
A TimeTraveler USP through the use of the TimeTraveler Token (TTT) that will allow for retailers, suppliers, communities, corporates and institutions to exchange their non-financial utility non-crypto tokens (including loyalty points, discounts, voting referendums, art, airmiles, etc) for regular financial securities tokens. This includes the existing Seratio ecosystem which enables real value to be gained from the good provenance of organisations, products, projects, processes and even people, as well as cryptocurrencies targeted at large, cohesive, vibrant, transactable communities. This will be a world changing development exchanging value and values.
AUTOMATED RISK MITIGATION
Hedging and balancing
The TimeTraveler Portfolio strategy is fully automated up until the trades are placed. Trades are placed once per day based on mechanical signals and no more than 5 Listed Cryptos will be owned at any one point in time.
The TT algorithm also employs an auto-rebalancing technique to facilitate proper distribution across the 5 positions.
We maintain a List of the top 20 coins by Market Capitalization; these coins have large market cap and significant volume. Listed Cryptos are selected for purchase primarily based on proprietary price momentum and volatility algorithms. A crypto losing momentum will be sold and replaced by another Listed Crypto.
In addition, an incubator will be run alongside the Portfolio using the same TimeTraveler methodology on the coins which rank 21 through 40. This will be run with 1/10 position sizing. As some of these coins increase in market capitalization, we will already be positioned to swap them into the portfolio with the coins with a lower market cap.
Automated entries and exits
In addition to liquidating to USDT as a stable cash-equivalent when triggered by extreme market volatility, we have additional risk controls which exit all coin positions when momentum and volatility of Bitcoin in particular is unfavorable, alleviating knock-on issues from cross correlation of prices between Bitcoin and other coins held.
So in summary, a position is exited in one of 3 possible ways:
1) First is the routine trading exit where the coin is no longer in the top 5 and thus triggers an immediate exit.
2) The second way is in the event that the volatility of the coin reaches extreme levels or if certain unfavorable
momentum conditions exist, we immediately exit.
3) The third way is in the case where Bitcoin triggers a collapse from a high volatility event. This is known as the Kill Switch that shuts down trading and forces the liquidation of the positions until the market recovers.