Investment Philosophy

The primary investment objective of the Partnership is growth of capital. The business of the Partnership is buying and selling cryptocurrencies. The General Partner believes in a contrarian investment philosophy and trading plan founded upon the recognition of Five Basic Principles. The descriptions set forth in this Memorandum  of specific strategies in which the Fund may engage or specific investments the Fund may make should not be understood to limit in any way the Fund’s investment activities. The Fund may engage in any investment strategy and make any investment, including any not described in this Memorandum, that the Trading Advisor considers appropriate to pursue the Fund’s investment objective. The Fund’s investment program is speculative and entails substantial risks. There can be no assurance that the investment objectives of the Fund will be achieved. The General Partner intends to protect Fund assets as much as possible from structural risks and cyber‑theft risks associated with investing in cryptocurrencies. The following risk‑reduction procedures will be implemented:

Preservation of Capital Is Crucial to a Successful Fund.

Losses are a reality. Generally, however, they can be minimized through the successful employment of disciplined risk  management techniques. Our contrarian trading philosophy stems from accumulating a diverse group of cryptocurrencies with strong teams and fundamentals that are supremely undervalued. The assets we purchase will be significantly lower than their previous all‑time high to ensure excellent entries so we can allow these assets to mature to our pre‑determined price targets. In order to preserve capital we will not focus on day trading. This will allow time for these assets to grow while we ensure profits are spread across multiple digital assets to mitigate downside risk of any one asset. Profits will be taken at opportune times when the desired conditions are met based on the current market cycle. In order to protect capital from cyber attacks a majority of funds will be held offline in a cold storage wallet.

Understanding the Current Cryptocurrency Cycle.

The Fund Manager understands that Bitcoin has been a proven leader in these cryptocurrency market cycles, affecting all of the altcoins. Inherently, we know that Bitcoin is programmed to run on roughly a 4 year cycle in which a halving takes place limiting the number of Bitcoins created as well as increasing difficulty for the miners. It is understood that after every halving we’ve seen since Bitcoin’s inception in 2009, the market tends to rise 6 months after these halvings for a set duration of time. Understanding, recognizing, and utilizing these time frames in the market is key to our consistent success.

Position Building.

Generally successful fund managers stick with trends either long term or short term. No attempts are made to buy the exact bottom or sell the exact top. We are aware that cryptocurrencies are prone to extreme volatility. This is why we build positions in  assets that are supremely undervalued and spread out our buys by dollar‑cost averaging into  our positions. This ensures that we can get an average entry price over an extended period of time as opposed to encountering any large downside swing after a single large buy.

Rebalancing of Assets.

In order to capitalize in the most volatile market traders have ever seen, we will deploy a strategy of rebalancing to compound our gains when we get too far weighted in one or more assets. This rebalancing strategy will allow us to pull profits from over‑performing assets and direct them to under‑performing assets to magnify investor profits. This continual rebalancing strategy will allow us to grow under‑performing positions while simultaneously mitigating downside risk in over‑performing assets. The end result will be consistent above‑average profits throughout the market cycle.

Exit Strategies.

The Fund Manager recognizes and understands that cryptocurrency bull markets do not last forever. Each asset can and will be prone to an 80‑90% correction during a bear market which can last 1 year or longer from a cycle top. This is why the fund manager is prepared to use data from the last several bull markets to pull profits when pre‑determined market cycle conditions are met. Our proprietary tools, research, and data along with the culmination of the previous  steps will allow us to predict and stay ahead of major market movements. Since the fund manager will continually be pulling profits by dollar‑cost averaging out of positions he can give the fund the best chance at receiving an average exit price while preserving capital and locking in profits. Although the fund has a long bias, positions can be taken that profit from downward moves in digital assets. Shorts will be chosen through a combination of fundamental and technical analysis. Typically, a shorted digital asset would be one that has weak fundamentals and is underperforming the broader market. The time frame for holding a shorted asset will vary depending on the digital asset chosen and market conditions.