Our investment philosophy
Automation & Diversification
Diversification: Modern Portfolio Theory (MPT) states that with increasing number of assets in the portfolio, the corresponding number of correlations becomes significantly larger than the number of assets and therefore the risk of the portfolio will mostly depend on covariances between assets rather than on risk of individual assets. Therefore, to reduce the overall risk of the portfolio, investment should choose assets that have little to no correlation. Hence, the essential aspect pertaining to the risk of an asset is the contribution of each asset to the risk of the aggregate portfolio.
It allows us to provide investors with a direct exposure to market more than 5.2 times superior than traditional stock market algorithmic trading.
Traditional Equity Markets
253 days x 6.5 daily trading hours
= 1665* yearly trading hours
on equity markets.
*This is from 365.25 (days on average per year) * 5/7(proportion work days per week) = 260.89 – 6(weekday holidays) – 3*5/7(fixed date holidays) = 252.75 ~ 253.Since 1985, the regular trading hours for major exchanges in the United States, such as the New York Stock Exchange and the Nasdaq Stock Market, have been from 9:30 a.m. to 4:00 p.m. Eastern Time (ET).
365 days x 24 daily trading hours
= 8760 yearly trading hours
on crypto markets.
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Insula Investment Management
Our Investment Philosophy
We allow investors to determine which proportion of their total wealth (w) should be invested in crypto in order to hold an optimal overall portfolio that includes the right crypto-assets, in the right proportions. All the decision making process is done automatically by the Decentralised Autonomous Funds and Centralised Funds we design.
Our investment philosophy is a compelling, computer-driven method for capitalising on crypto-markets. We deliver Alpha to our clients with programmatically executed solutions to crypto investors.
At Insula Investments we believe that the cryptocurrencies market is inefficient.
By operating on this market, Insula Investments both provides and benefits from a deeper liquidity, better price discovery and a tighter market bid-ask spread, all together with an increased certainty of execution.
Our investment process enables investors to get rid of any form of bias that hinder decision making as it is exclusively performed by investment bots.
Although people are subject to making biased decisions, computers are designed to only make rational decisions.
Both strategy and execution are performed by algorithms.
Insula Investment Management provides investors with cutting edge technology, combining the features of algorithmic trading and blockchain, that sets us apart from traditional assets that are largely arbitraged and exploited already.
Moreover, our strategies are running automatically 24/7, on a low latency basis, with bots screening the cryptocurrency market that never closes.
Both strategy and execution is performed by algorithms.
A computer brain generates 24/7 electronically-emitted mathematical signals that dictate the autonomous behaviour of our investment robots. Our robot act as electronic traders that interpret computer generated signals by continuously placing buy/sell limit & market orders on thousands of trading pairs.
We allow investors to gain a complete exposure to the crypto market by limiting the risk concentration of investing only in Bitcoin and its numerous price proxies. In fact price correlation coefficient tend to be high on the crypto markets and most exchange tokens are still « mirroring » the price of Bitcoin.
This initial era of general consensus that Bitcoin was the ultimate proxy for the cryptocurrency market seems to be questioned and we are seeking to tap the nascent diversity of the crypto-asset market.
Please note: Insula is running fully and has moved away from its purely research and experimentation stage.
Hence, from February 2020, each consultation and service rendered is now being charged and payable in Insula Tokens, including telephone consultations. (500 ISLA/hour).
Thank you for your understanding- we remain at your disposition for any information you may need.