Hello everyone! I’m Reinis Fischer, CEO and founder of TerraMatris Crypto Hedge Fund. Today, I want to share our progress as of October 24, 2024, and dive into our trading strategies and risk management techniques. It’s been an exciting journey, and there’s a lot to cover, so let's get started.
About TerraMatris
For those of you who may be new, TerraMatris is a quantitative DeFi hedge fund, focused on advanced options trading strategies, particularly put options, to maximize growth and minimize risk in the crypto market. Our fund operates primarily out of Georgia, utilizing the Solana blockchain for its TerraM token, which is available for investment via a decentralized liquidity pool on Raydium.
Swap on Raydium (Solana supported wallet required)
Quick reminder: investments in stocks, bonds, or cryptocurrencies carry risks, so always perform due diligence before investing.
TerraMatris Trading Strategy
Our trading strategy centers around Bitcoin and Ethereum. We currently hold long positions in both, with additional exposure to Solana. These positions are bolstered by reinvesting premiums from options trading back into cryptocurrencies such as Stellar Lumens, Jupiter Token, and PAXG. By following a dollar-cost averaging strategy, we’ve successfully accumulated positions in a basket of assets over time.
This week marks Week 62, and our selected tokens for the week are Ethereum, Solana, and Toncoin.
Risk Management: Protecting Against Market Volatility
Effective risk management is key at TerraMatris. When entering short put option trades, we target high-probability trades, aiming for the options to expire worthless. However, if the market moves against us, we roll the position forward for credit, meaning we buy back the losing position and reopen it at a lower strike price, still earning a premium.
In addition, we hedge all short positions using futures. An example of this occurred just yesterday when Ethereum experienced a sudden selloff. Our hedging strategies worked seamlessly, allowing us to profit despite the market downturn.
Weekly Goals and Performance
Each week, I love reviewing our goals and performance, as it’s essential to maintain focus and track progress. This week, we traded 0.4 Ethereum contracts, a bit more aggressively than usual, between -0.05 and -0.10 delta. Despite yesterday's selloff, the pullback proved beneficial, especially given our hedging through short futures.
Our weekly growth speaks for itself. As of October 24, 2024, we’ve reached an all-time high of $3,991, representing a 3.34% week-over-week growth or $128.95 in dollar terms. It’s incredibly exciting to witness the snowball effect of our trading strategies over these 62 weeks.
Current Market Trends and Technical Analysis
At present, Ethereum is trading between its 50- and 200-day moving averages, with support around $2,500. Last week, Ethereum reached a high of $2,700 before pulling back. As put sellers, we are cautious but optimistic, expecting possible further declines to $2,300 or even $2,100. However, we remain committed to our strategy of selling puts, particularly with Ethereum and Solana.
Introducing the TerraM Token
Now, let’s talk about the TerraM Token, which represents direct ownership in TerraMatris. Each TerraM token gives you a stake in our high-performance fund, allowing you to benefit from our growth and success. The token operates on the Solana blockchain, ensuring secure, transparent ownership and transaction records.
We offer a buyback program to ensure liquidity and added value for TerraM holders. If you’re interested in learning more, feel free to explore our platform or reach out directly.
Swap on Raydium (Solana supported wallet required)
Networking and Partnerships
This week has been eventful on the networking front, with both online and offline meetings. I recently attended a Georgian business networking event by Axel, where I had the pleasure of meeting many smart, talented individuals from various industries. These connections are vital, as we continue to seek partnerships and investment opportunities in the blockchain space.
If you are a founder or part of a team developing a blockchain project, I’d love to hear from you! We are actively looking for DeFi projects to invest in.