STOIC AI STRATEGY

Meta — market-neutral crypto strategy

Meta holds long and short positions at the same time, sized to offset each other, so returns come from how individual assets perform relative to one another rather than from the direction of the crypto market.

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Annualised return
39.79%Since Jan 2021 · includes backtest
Annualised, live only
25.9%Since 1 Apr 2023
Max Drawdown
12%Measured on the daily equity curve
Sharpe Ratio
2.14USDT denomination

Live since 1 April 2023; figures before that date are backtested. Past performance does not guarantee future results.

Investment process

How Meta's market-neutral strategy works

Meta is built as a portfolio of independent quantitative ideas rather than a single model. Each part below is a stage of the same pipeline, from how an idea is found to how it is executed.

  • Research

    Research and validation

    Alpha ideas come from statistical and machine-learning analysis of market microstructure and cross-sectional inefficiencies in digital assets. Every sub-strategy passes in-sample and out-of-sample validation before it can trade, and once live it is monitored with rolling performance metrics so alpha decay is visible early. Predefined thresholds deactivate a model whose edge has gone.

  • Allocation

    Portfolio construction

    Allocation follows a risk-based optimisation using historical volatility, covariance and expected Sharpe ratios. Capital spreads across more than 200 active sub-strategies grouped into momentum, reversal, arbitrage and hedging clusters; normally around 20 carry a non-zero weight at the same time, which keeps the book diversified across independent alpha sources rather than concentrated in whichever idea worked last.

  • Execution

    Fully systematic execution

    Execution is fully systematic through a proprietary module that needs only API connectivity to the exchange. Rebalancing runs hourly. The average position is held three to five days, with high-conviction trend positions staying open up to three or four weeks, and turnover averages around 55% of strategy capital per day depending on volatility and liquidity.

  • Return sources

    Where the return comes from

    The primary source is trading alpha — the spread between how the long and short sides perform. Meta USDT adds a second component through collateral optimisation: collateral is frequently maintained in BTC while directional exposure is hedged with futures, which lets the strategy earn funding rates alongside the trading result.

Monthly returns and track record

Cumulative return 548.2%
CAGR 39.8%
$10,000.00 Jan 2021
$64,821.67 Aug 2026

Parameters — Meta USDT

  • USDT Base Currency
  • 2.14 Sharpe Ratio
  • 2.87 Calmar Ratio
  • 2.87% Avg Monthly Gains
  • 12.01% Max Drawdown
  • 54.84% Profitable days %
JanFebMarAprMayJunJulAugSepOctNovDecYTD
2021 8.31%23.78%7.22%12.67%-3.22%4.09%1.01%6.5%3.24%5.97%5.93%-0.02%103.36%
2022 3.15%1.88%7.86%4.87%9.34%1.5%1.55%2.16%3.97%1.68%-0.09%3.97%50.29%
2023 -0.22%2.33%-3.57%-0.88%1.60%6.74%-5.58%1.27%3.77%1.93%1.69%10.22%19.98%
2024 -1.88%2.21%9.36%3.03%-0.68%2.68%-3.78%0.99%-2.64%-2.39%11.45%8.61%28.81%
2025 1.44%7.09%-3.98%0.20%1.10%4.23%2.30%-1.90%3.12%-0.48%4.81%5.88%25.88%
2026 -1.19%-1.25%-1.78%6.09%6.68%-2.73%3.33%9.01%
Cumulative return 279.0%
CAGR 27.0%
1.0000 BTC Jan 2021
3.7902 BTC Aug 2026

Parameters — Meta BTC

  • BTC Base Currency
  • 1.84 Sharpe Ratio
  • 1.74 Calmar Ratio
  • 2.07% Avg Monthly Gains
  • 14.25% Max Drawdown
  • 53.36% Profitable days %
JanFebMarAprMayJunJulAugSepOctNovDecYTD
2021 5.27%16.33%3.76%7.30%-3.57%3.77%0.52%5.24%2.15%4.16%4.32%-0.41%59.55%
2022 2.96%1.90%7.35%4.38%9.33%1.42%1.33%1.54%3.54%1.21%-0.57%3.64%44.81%
2023 -0.63%1.74%-3.32%-1.44%1.03%6.76%-6.03%0.92%3.48%1.36%0.75%7.85%12.30%
2024 -2.99%0.51%5.12%2.46%-1.17%1.96%-4.17%0.80%-3.09%-3.06%9.71%7.14%12.88%
2025 0.63%6.78%-4.36%-0.07%0.75%3.87%1.52%-2.45%2.45%-0.65%4.81%5.72%20.03%
2026 -1.64%-1.19%-1.69%6.28%6.43%-2.93%2.75%7.80%

Download the strategy fact sheet (PDF) →

Market regimes

How Meta behaves when the market moves

A market-neutral strategy is judged on what it does when direction stops helping. Each window below covers live trading only, and pairs the market's total return over those dates with Meta's.

  • Market rose

    2024

    Bitcoin
    +121.31%
    Meta
    +28.8%
  • Market fell

    2025

    Bitcoin
    -6.33%
    Meta
    +25.9%
  • Market fell sharply

    2026 year to date

    Bitcoin
    -28.25%
    Meta
    +9.0%

All windows are live trading; Meta has been live since 1 April 2023. The Bitcoin figures are market data shown for context, not strategy results, and are taken from the Stoic AI Crypto Index fact sheet (August 2026). Past performance does not guarantee future results.

Strategy terms and parameters

  • 1 Strategy type Market-neutral, long and short
  • 2 Live since 1 April 2023
  • 3 Denominations USDT, BTC
  • 4 Universe Futures available on Binance Global, within the top 15% most liquid digital assets, excluding memecoins and GameFi tokens
  • 5 Sub-strategies 200+ across momentum, reversal, arbitrage and hedging clusters; around 20 carry a non-zero weight at any time
  • 6 Rebalancing Hourly
  • 7 Average holding period 3–5 days; up to 3–4 weeks for high-conviction trend positions
  • 8 Position limits 3% per asset, 20% for Bitcoin, 40% per cluster; 40% exchange-level stop per asset
  • 9 Minimum to start $500 on Bybit; $1,000 on Binance and Hyperliquid
  • 10 Leverage None by default; up to 5x on request
  • 11 Custody Funds stay in your own exchange account, connected via API keys without withdrawal rights Specifications reflect the Meta strategy as described in its monthly fact sheet. Limits are targets applied by the risk system, not guarantees.

Measured against institutional peers

Nodari Kolmakhidze, Chief Financial Officer & Partner at Stoic AI

"Crypto Insights Group's live database shows that Stoic Meta outperformed the average market-neutral crypto hedge fund in both BTC and USDT returns throughout 2025 and 2026. Those results are based on live performance — not backtests — which makes the comparison especially meaningful."

Source: Crypto Insights Group live crypto hedge fund database. Comparison includes live performance only (no backtests). Past performance does not guarantee future results.

Nodari Kolmakhidze, CFO at Stoic AI

Risk framework

How Meta manages risk

Risk is capped at several levels at once, so no single asset, cluster or model failure can dominate the outcome.

  • Position limits

    Limits on every position

    No single asset may exceed 3% of the portfolio, and Bitcoin is capped at 20%. Each cluster of related sub-strategies is limited to 40% of allocation, and exchange-level stop orders cap the loss on any individual asset at 40%. Together these hold the maximum loss contribution of any one asset to roughly 1% of portfolio net asset value.

  • Portfolio controls

    Portfolio-level controls

    The strategy is structurally market-neutral: total long exposure is balanced against total short exposure on a dollar-neutral basis, with net exposure typically below 1–2% and only transient. Gross exposure is normally maintained near 100% of net asset value within a range of about ±20%. A real-time system tracks drawdowns, volatility, leverage and exposure, raising automated alerts when a limit is approached.

  • Drawdowns

    Drawdown characteristics

    The largest peak-to-trough decline since live trading began is 12%. Typical drawdowns are far smaller: the average measures 1.57% and lasts about 12.9 days. The strategy is routinely stress-tested against historical shocks including March 2020, May 2021, the FTX collapse in 2022 and the tariff-driven macro stress of 2025.

  • Governance

    Governance and oversight

    An Investment Committee made up of the two Co-CEOs, the CFO, the CTO, the Head of Quantitative Research and the Head of Engineering meets weekly to review performance, risk metrics and strategic adjustments. Day-to-day risk monitoring runs 24/7, and emergency actions such as suspending a strategy or cutting exposure are authorised by the Head of Quantitative Research and the Head of Engineering.

FAQ

Market-neutral trading questions, answered

  • A market-neutral strategy holds long and short positions at the same time, sized so the two sides offset each other. Because roughly as much capital is positioned for prices to rise as for them to fall, the return comes from how individual assets perform relative to one another rather than from the direction of the crypto market as a whole. Meta is built this way: total long exposure is balanced against total short exposure on a dollar-neutral basis, and net exposure stays typically below 1–2%, drifting above that only briefly because of execution and rebalancing latency.
  • Gross exposure is normally maintained around 100% of net asset value, within a range of roughly ±20% depending on market conditions and signal intensity. Capital is allocated across more than 200 active sub-strategies grouped into momentum, reversal, arbitrage and hedging clusters; at any given time around 20 of them carry a non-zero weight. The split between them follows a risk-based optimisation using historical volatility, covariance and expected Sharpe ratios, so no single idea can dominate the book.
  • Risk is capped at several levels at once. No single asset may exceed 3% of the portfolio, and Bitcoin is capped at 20%. Each cluster of related sub-strategies is limited to 40% of allocation, and exchange-level stop orders cap the loss on any individual asset at 40%. Together these keep the maximum loss contribution of any one asset to approximately 1% of portfolio net asset value. A real-time system tracks drawdowns, volatility, leverage and exposures, raising automated alerts when a predefined limit is breached.
  • The largest peak-to-trough decline since live trading began is 12%. Typical drawdowns are much smaller: the average drawdown measures 1.57% and lasts about 12.9 days. The strategy is routinely stress-tested against historical market shocks, including March 2020, May 2021, the FTX collapse in 2022 and the tariff-related macro stress of 2025.
  • Rebalancing runs on an hourly basis. The average position is held for three to five days, while the longest, high-conviction trend positions can stay open for three to four weeks. Turnover averages approximately 55% of strategy capital per day, varying with market volatility and liquidity conditions.
  • The strategy operates primarily across the top 15% most liquid digital assets, including Bitcoin and major altcoins. Its universe is the futures market available on Binance Global, excluding memecoins and GameFi tokens.
  • Meta tends to perform strongest in sustained trending environments where directional momentum persists. Performance may moderate during momentum crashes or in prolonged mean-reverting regimes, where price dynamics are unstable or reverse frequently.
  • Alongside trading alpha, Meta USDT captures funding income through collateral optimisation. Collateral is frequently maintained in BTC while directional exposure is hedged via futures, which lets the strategy earn funding rates as an additional return component.
  • An Investment Committee comprising the two Co-CEOs, the CFO, the CTO, the Head of Quantitative Research and the Head of Engineering meets weekly to review performance, risk metrics and strategic adjustments. Day-to-day risk monitoring and operational oversight run 24/7. Emergency actions, including suspending a strategy or reducing exposure, are authorised by the Head of Quantitative Research and the Head of Engineering.
  • A basis trade or a funding-rate carry earns its return from one structural spread — between spot and futures, or between the two sides of a perpetual. Meta is cross-sectional instead: it takes long and short positions across many assets at once and earns from how those assets perform relative to one another, using more than 200 sub-strategies rather than one repeated trade. Funding income is present in Meta USDT, but as a secondary component from collateral optimisation, not as the main engine.
  • Because its return does not depend on the market going up. A directional portfolio and a market-neutral one are driven by different things, so holding both tends to smooth the combined result: the neutral sleeve can contribute in flat or falling markets, when a long-only position cannot. That is also why market-neutral allocations are used as a low-correlation diversifier rather than as a replacement for directional exposure.
  • Three things, mainly. Relationships between assets can break down, so pairs that historically moved together stop doing so and both sides of a position lose at once. Execution can slip: net exposure drifts during rebalancing, and in thin liquidity the fills are worse than modelled. And a strategy can simply stop working as the inefficiency it exploited disappears — which is why sub-strategies are monitored with rolling metrics and deactivated at predefined thresholds. Market-neutral reduces exposure to market direction; it does not remove risk.
  • Meta has been trading live since April 2023. The monthly figures above also cover January 2021 to March 2023 — that earlier stretch is backtested, and the chart marks the point where the backtest ends and live trading begins. The models behind Meta are monitored continuously against rolling performance metrics, with predefined thresholds for deactivating a sub-strategy whose edge decays.
  • Meta USDT holds USDT as collateral, so all performance is measured in USDT. In contrast, Meta BTC uses BTC as collateral with the goal of increasing BTC holdings. However, this means the strategy’s performance depends on BTC price movements. Meta BTC is ideal for clients who want to grow their Bitcoin holdings. With Meta BTC, you can boost your Bitcoin — it targets approximately +15% yearly returns on top of your BTC holdings.
  • Yes—your funds stay on your own exchange account at all times. The system connects using API keys with trade-only or read-only permissions, meaning it can never withdraw your crypto. You keep full custody, and all trading activity is visible directly in your exchange account.
  • The minimum required amount depends on the exchange: $500 on Bybit, and $1,000 on Binance and Hyperliquid — preferably in USDT, USDC, or BTC. Other crypto equivalents are also accepted, but stablecoins or BTC are recommended as they are optimal for the start of strategy execution.

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