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Alphr V2: Automated Mirror Pools
What is copy trading?
Copy trading is a method of trading in which one person imitates the trades of an advanced or respected trader with the intention of getting an easy edge above his or her own current trading abilities.
What are the benefits of copy trading?
The benefits of copy trading include:
1 Hands free investing: No need to consistently trade or keep up with up to date information throughout the day
2 Trade with the alpha of the best: The top traders that you copy are often aware of market trends and sell/buy at the most opportune times
3 Saving on gas fees: Copy trading funds are pooled together and routed into a single transaction, lowering overall gas fees
What are the potential downsides of copy trading?
The potential downsides of copy trading include:
1 Lack of investment control: Your trades are in the hands of the wallet that you are actively mirroring, you buy what they buy and sell what they sell
2 Different investment styles: Some traders may seem to contradict what you consider to be the proper investment strategies
The top places to copy trade at the moment:
What is Etoro?
Etoro is a social trading and multi asset brokerage company that first launched copy trading with stocks. They currently have more than 20 million users from over 140 countries using capabilities on their platform including traditional stock trading, cryptocurrency trading, and copy trading. Etoro has a private market valuation of $10 billion.
Cefi or Defi?
Etoro is a centralized finance company.
What coins can you trade?
Etoro gives the option to copy trade up to 29 cryptocurrencies at the moment. This includes common cryptos such as BTC, ETH, BCH, XRP, and DOGE.
How does Etoro source its wallets?
Users must sign up to be copy traded on Etoro. This includes displaying identity and giving up the “no KYC’ law of decentralized finance.
What is dHEDGE? (or others like Hord, FNDZ, & Wunderbit)
dHEDGE is a non-custodial, decentralized asset management application for synthetic assets on Ethereum. Users can manage multiple investment strategies across their app including pursuing copy trading of crypto assets. dHEDGE ’s native token, $DHT, has a market cap of $18.3 million with a total supply of 100 million tokens.
Cefi or Defi?
dHEDGE is a decentralized finance company.
Where does dHEDGE source wallets?
Individuals sign up to be copy traded on dHEDGE as well as to create other types of asset pools. In contrast to Etoro, dHEDGE users can maintain anonymity.
What coins can you trade?
Since dHEDGE on Ethereum is powered by Synthetix, dHEDGE managers can trade any synthetic asset. There are more than 40 synthetic assets available to trade spanning several types of asset classes. Each pool in dHedge can consist of up to 10 different asset types including farming positions, simple tokens, and lp tokens.
What is Alphr?
Alphr is a decentralized automated trading platform that lets you automatically copy trade the actual best performing wallets in crypto. Alphr’s automated mirror pools have been built based on analyzing the entire history of Uniswap and statistically identifying the most reliable, high yielding, and consistent traders. At Alphr, users can choose to automatically mirror these top performers by entering alphr’s automated mirror pools. With a $2m raise, including a $500k seed and $1.5m private round, Alphr has accomplished what no other copy trading platform has, allowing anyone to trade like the best.
Cefi or Defi?
Alphr is a decentralized finance company organized as a decentralized autonomous organization (DAO).
Where does Alphr source wallets?
Alphr has scraped Uniswap from the bottom up, processing every wallets’ history and analyzing its risk score, yearly gains, average trading performance, and much more.
What coins can you trade?
Users can trade any ERC20 token on Alphr provided that it is a part of the top performing wallet pools.
Unlike Etoro, Alphr is fully decentralized, does not require KYC, allows you to trade any erc20 token, and sources all the best wallets in crypto with a permissionless fashion.
In contrast to dHEDGE and currently all competitors like Hord, FNDZ etc, Alphr allows you to trade any erc20 token, and sources the best wallets in crypto and ranks them according to performance.
Alphr’s Automated Mirror Trading Pools:
What are they and how do they function?
Alphr has scraped Uniswap from the bottom up (in fact we scraped every tx since the first ethereum block), finding the most successful and reliable traders by analyzing their trades since the inception of their wallet. A team of PhD quants here at Alphr have identified reliable wallets based on multiple statistical analyses and designed investment pools that allow instantaneous copy trading of these top wallets. These specifically designed pools are Alphr’s automated mirror pools. These are NOT wallets that have signed up to be copied, these are the ACTUAL best performers that don’t want to be found.
The owners of these top wallets are allocated rewards in the form of the native $ALPHR token as an act of good will towards our platform mirroring their trades.
What are the estimated returns?
Although past performance does not completely predict future outcomes, our team predicts annual compounded returns as large as 800% a year by entering into our specifically chosen automated mirror pools. These numbers come from an assortment of statistical analyses including Sharpe Ratio, GMV, Trade count, & Trade Volume.
Is this the natural progression of copy trading and does it represent values in Defi?
Blockchain and Dexes enabled Alphr to exist, never before has anyone been able to identify the actual best traders in the world, because all the trades occur in a closed loop ecosystem. With the invention of the DEX, the future of copy trading is undoubtedly centered around transparent trading on-chain with capital flowing behind the actual best performers. Permissionless copy trading is representative of the rebellious spirit of Defi. In addition, the top traders need to remain anonymous for safety reasons (ie. you are your own bank), so Alphr’s automatic reward system is a perfect market fit for the Defi native. Currently there is a lot of larping from different people who’s trading skills just haven’t been examined enough in depth. Alphr’s automated mirror pools are bringing valuable tools to the common trader; a democratizing action well suited to the spirit of Defi.
Conclusion:
In 2020 Yearn brought an entirely new use case to Defi. It helped thousands of people make great yields from farming without needing the insider’s edge. Alphr is to copy trading as Yearn was to yield farming. At the moment the alpha traders of crypto are making incredible gains. Alphr helps the common crypto trader share in these gains by opening up opportunities to follow the same trades as the best in the game. Our platform does this all while continuing to stand by Defi’s fundamental values of anonymity, decentralization, low barriers of entry, trustlessness, and censorship resistance.
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Medium: https://medium.com/alphr-finance
