Panxora’s AI models outperformed the overall Bitcoin market
The company will leverage its proprietary technology of using AI models for launching its Active Treasury Management Service
The company will leverage its proprietary technology of using AI models for launching its Active Treasury Management Service
According to its latest report, Panxora, a capital management and crypto exchange company, has revealed a new algorithm for trading which is way better than human traders. Panxora’s AI models have shown significant outperformance both in terms of overall return and risk adjusted returns.
In the 21 months from launch, they have generated a return in excess of 120% and a Sharpe Ratio exceeding 2.0. This compares to a long-term Sharpe Ratio of 0.79 for Berkshire Hathaway, Warren Buffet’s investment vehicle.
The AI models learn to identify the patterns created when human traders panic, acting dispassionately upon those signals to take profits which may be invisible to others.
Gavin Smith, founder and CEO of Panxora and one of the AI architects, said: “These results show the level of sophistication AI can achieve in crypto hedging strategies. Though the models learn and adapt over time to keep in step with changes in the market, the goal to capitalise on price movement remains fixed. The models are also written to guard against any downturn. They are built to retain as much value as possible when the market drops or moves sideways.”
Following the success of this proprietary technology with AI models, Panxora has launched the Active Treasury Management service. The service runs through Panxora’s Licensed Cayman Islands hedge fund. It professionally manages the subscription capital token businesses raise during their ICOs, IEOs and STOs.
The company’s development team continues to innovate new products and services that will provide advantages to its customers.
Marcie Terman, Panxora COO added: “Tokens mostly receive their subscription capital in cryptocurrency, leaving it subject to price volatility. The Active Treasury Management Service effectively hedges this capital to protect it against a cryptocurrency price collapse, but the models are also trained to identify market inefficiencies that can generate excess returns. These extra returns can be used by founders rather than dipping into their main funding for things like paying for exchange listings.”
Using active hedge strategies based on AI trading algorithms, coupled with passive hedge balancing, the TMS can create a balance between capital growth and preservation, depending on the risk appetite of each client. The client dictates how much capital they need each month, which they can transfer into their operating account, ensuring that they can finance daily operations.
Gavin Smith concluded: “Having a plan in place for responsible management of a token’s assets is not just good for the company itself. It’s a signal to investors that says: we’re serious about making this business work, taking responsibility for the capital you’ve entrusted to us. We think this is an important step forward in the maturation of the token industry.”
The application of AI has picked up pace in the fintech era as we see AI being used in areas like compliance and regulation, secondary bond trading, cross border payments, sustainable supply chain finance programme and procurement.