Hello, everyone! My name is Reinis Fischer, and I’m the CEO and founder of TerraMatris Crypto Hedge Fund. Today is September 5, 2024, and I’m here to provide a weekly recap of what’s been happening in our fund.
Before diving into the details, let me give you a quick overview of what TerraMatris is all about and how we operate. TerraMatris is a private crypto hedge fund that I manage personally. It’s not publicly registered, but it is available for over-the-counter investments or through the Raydium DEX liquidity pool.
Disclaimer
Investing in stocks, bonds, funds, or cryptocurrencies is risky. You could lose some or all of your money. Always do your due diligence before investing.
Our Trading Strategy
At TerraMatris, we primarily sell one-day-to-expiry (1DTE) options on Bitcoin. Additionally, we sometimes sell covered calls on established positions. We also trade covered calls on long perpetual futures contracts, which I’ll discuss a bit later.
Our main goal is to generate income and reinvest that income—mainly in the form of premiums—back into crypto. We have a specific basket of crypto assets that we focus on, including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Stellar Lumens (XLM)
- USDC (USD Coin)
- Solana (SOL)
- Jupiter (JUP)
- PAXG (Digital Gold)
Each week, we follow a dollar-cost averaging strategy, investing in these cryptos. For week 55 of the fund, we are investing in Bitcoin, PAXG (digital gold), and TokenFi.
Why These Assets?
- Bitcoin needs no introduction as the pioneer of cryptocurrencies.
- PAXG is digital gold, which tracks the price of physical gold and makes it easy to hold gold in a digital format.
- TokenFi is a token focused on real-world assets. While we are still exploring its business model, we see significant potential in the tokenization of real-world assets.
Risk Management at TerraMatris
When placing trades, we always look for high-probability options that are likely to expire worthless. If a trade gets into trouble, we roll it forward for a credit. We also hedge our trades using futures and employ stop-losses to mitigate risk. If things go completely wrong, we can exit and start fresh.
Weekly Goals
Each week, we set specific goals. This week’s goal is simple: we aim to invest at least $10 daily in Bitcoin, PAXG, and TokenFi. Specifically, we’re putting $5 in Bitcoin, $2.50 in PAXG, and $2.50 in TokenFi. The idea is that in three to five years, we hope these investments will triple, quadruple, or even increase tenfold.
Weekly Results
This week, TerraMatris reached a portfolio value of $3,578.47 as of September 5, 2024, which marks a 2% decrease compared to the previous week. In dollar terms, we lost around $75. While this might seem like a setback, given the broader context of a bleeding crypto market—where Bitcoin has dropped from $62,000 to $57,000—we feel we are well-positioned.
We recently closed all our long-term positions and have no leveraged investments, leaving us in a much better position to navigate the current market environment.
Our Current Positions
Right now, we have a single covered call on Ethereum, with a strike price of $2,500, expiring tomorrow, September 6. We opened this position last week by buying one long Ethereum perpetual future at $2,548 and selling an in-the-money call option at $2,500, earning a premium of $170. This premium helped lower our breakeven price to $2,438.
However, since Ethereum is currently trading below our breakeven, we will likely roll this position forward. We’re also moving towards weekly options to free up more time for research, aiming for fewer trades and more thoughtful investments.
Market Trends and Technical Analysis
Looking at Bitcoin, it’s currently trading under both its 50-day and 200-day moving averages, around $57,000. We see resistance at $62,000, and a potential drop to $49,000, with further support at $42,000 or even $35,000. At this point, we’re trading cautiously, focusing on small investments while observing the market.
Opportunities for Investors
If you’re interested in joining TerraMatris, you can do so by investing in our TerraM token. There are 10,000 TerraM tokens minted on the Solana blockchain, and you’ll need a Solana-powered wallet to store them. TerraM tokens are available for swap on Raydium’s automated market maker (AMM) for USDC. Currently, 374 tokens are available on the liquidity pool, and we regularly conduct buybacks, which increase the token price.
For larger investments, you can contact us directly to discuss options.
Final Thoughts
Despite the small drop this week, we remain optimistic. Next week, we plan to increase our positions by 10%, buying more Ethereum and selling additional covered calls.
Thank you for watching, and I look forward to sharing more updates next week!