Data as of 10/29/2021 through 12/30/2022.

The three independent component algorithmic models-Bitcoin, gold, and cash are interconnected to provide a synergistic result of generating pure Bitcoin alpha. The chart below illustrates that Tactical Bitcoin (AITBCS) effectively reduced Bitcoin’s downtrends. As mentioned above, avoiding extreme losses is the key to recovering faster from drawdowns.

Comparing the Tactical Bitcoin (AITBCS) against other high-volatility assets shows its effectiveness at reducing drawdown and risk. The blue dots represent the equity market (every stock in the S&P 500), and the yellow circles represent the 10 largest companies (i.e., Amazon, Apple, etc.).

Bitcoin has a more significant drawdown than most of the equity market, and its risk profile is extreme, making it a challenging instrument to have in your portfolio. Tactical Bitcoin’s (AITBCS) volatility was lower than most of the equity and generated half of the drawdown compared to the pure beta of Bitcoin. By substantially reducing the downside volatility and the inherent risk of Bitcoin, we have developed a product that can be used in portfolio construction as an allocation to enhance any portfolio’s overall return profile.