What is Meta Strategy and How Does It Work?
The Stoic AI app has undergone a series of positive changes over the past year, including the addition of Meta strategy. Both Fixed Income strategy and easy API integration have already been implemented to help amplify our user's experience within the app.
We've heard discussions lately regarding Meta strategy and when it will be available inside the Stoic app itself. We are happy to announce that Meta strategy is now officially available inside the app for current Stoic members and potential members to easily onboard.
Let's discuss what Meta strategy is and explain how it works.
What is Meta?
Meta is our latest, automated trading strategy that took 5 years of research and development to complete. The result though, was well worth it, as this strategy is an absolute powerhouse in terms of performance and portfolio management abilities.
Meta is a synergy of the algorithms with over 200 sub-strategies that are exploiting different market inefficiencies. The strategy assigns weights to the best of the best depending on the current market environment.
Our quant team has generated these sub-strategies based upon expert mathematicians’ original concepts of exploiting a wide variety of market inefficiencies. Meta provides stable and uncorrelated returns no matter what events are occurring in either crypto or traditional markets.
We utilized more than 20 million predictions from over 179,000 decentralized analysts on our Collective Intelligence Platform, to enhance our quantitative strategies. As a result, we were able to form powerful and unique, hybrid intelligence-based algorithms.
How does Meta work?
Our developers have built a complex trading system (Meta) that is able to combine many types of strategies, as well as execute the stack simultaneously for thousands of clients on various infrastructures, such as spot and futures markets.
Meta works by utilizing different strategies on an hourly basis, assigning and rebalancing weights between them. Depending on the direction of the market, a specific set of utilized strategies can either be added or taken away.
Metastrategy, USDT (2021-2023)
Meta strategy maintains a low maximum drawdown - 9.94% in comparison to Bitcoin - 76.63% and Ethereum - 79.30%. Thanks to this, the strategy has excellent risk-adjusted returns measured by Sharpe and Calmar ratio methods.
Feel free to view the full strategy fact sheet here.
Since November, Bitcoin has lost 18.8% while experiencing daily drawdowns of up to -15%. On the other hand, Meta strategy proudly displays its stability in such periods and on the contrary, gains profit.
Meta on Stoic AI
Back in December, our team announced a soft launch of Meta strategy. The main difference between the Stoic version and soft launch, is that the minimum AUM, or amount of funds to start with, is now set to $1000 instead of $5000.
Signing up for Meta inside of Stoic is now much more attainable for those who don’t have or don’t want to allocate as many funds at the moment.
Even though the above message is true, $5000 is still the recommended AUM for Meta to live up to its full potential, allowing the algorithm to take all necessary positions within the entire stack of sub-strategies.
Meta is a market neutral strategy and won’t allocate 100% of its funds into one strategy such as Long Only. In other words, Meta won’t necessarily outperform the market when it pumps each time.
Regardless, we couldn't be more excited to unveil Meta, making it available for the very first time inside the Stoic app. This is a ground-breaking and historic moment for not only the Stoic team, but for those dedicated to taking their portfolios to a new level.
The difference between in-app Meta and soft-launch Meta
If we take a closer look at both strategies, the soft-launch Meta and the in-app Meta do not differ significantly in terms of performance.
In-app Meta is specially designed to trade small AUMs effectively, making the threshold for entering the strategy more accessible to everyone. Soft-launch Meta wasn’t able to effectively trade on $1000 in AUMs, which is why we decided to release another version of it.
For both versions, the performance with an AUM of $5000 will be better than with an AUM of $1000 and will not differ significantly between versions. Therefore, we strongly recommend having an AUM of $5000 on any Meta, for optimal performance.
Time to Act
Be one of the first to take advantage of Meta on Stoic AI at the $1000 entry point. Users who joined the soft launch in January are already raving about what Meta can do and are getting amped up for the future.
Not a Stoic member yet? No problem! Go here to register for Stoic AI and get started with Meta today.
Meta FAQs
What do I need to connect Meta strategy?
To connect Meta, you need to have a Binance Global main account or sub-account with the ability to trade futures. If you are a new user, simply visit the Stoic Web app or download the app from Google Play and follow the step-by-step instructions.
Is there a minimum amount of funds that need to be deposited into Stoic's Meta strategy?
Yes, the minimum funds required is $1,000. However, the recommended minimum amount to trade on Meta is at least $5,000.
Is there a fee for funds managed by Meta strategy?
Yes, there is a 5% management fee per year paid upfront
Is there a performance fee?
There is no performance fee for Meta inside the Stoic App. You only pay the upfront annual fee of 5%.
How often does Meta strategy execute trades?
Meta strategy performs hourly weight rebalancing between sub-strategies, so trades should occur every hour. If you notice that there are no trades in your account, please reach out to support in the in-app chat.
How do I receive additional support?
If you do not find the answers to your questions above, contact our support in the in-app chat.
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Author:
Ken Melendez
✍️ Head of Content @ Cindicator
📊 Certified Bitcoin Professional
🔐 Blockchain Chamber - Chapter President
Who is Cindicator?
Cindicator is a world-wide team of individuals with expertise in math, data science, quant trading, and finances, working together with one collective mind. Founded in 2015, Cindicator builds predictive analytics by merging collective intelligence and machine learning models. Stoic AI is the company’s flagship product that offers automated trading strategies for cryptocurrency investors. Join us on Telegram or Twitter to stay in touch.
Disclaimer
Information in the article does not, nor does it purport to, constitute any form of professional investment advice, recommendation, or independent analysis.