[Coinvestor] Algo partner interview : Teyvat Labs(1)

3 min readApr 10, 2023
  • Kevin Kang (CEO, Co-Founder)
  1. What kind of company is Tevat Labs?
  • Teyvat Labs is a quantitative research company that receives data and creates trading strategies by searching for patterns. In the cryptocurrency market, we develop these strategies and then code them so they can be automatically traded. For traditional assets, clients typically contract with a brokerage firm after conducting research on the stocks they wish to trade.

2. What makes Teyvat Labs special?

  • Our first advantage is that we cover both traditional assets and cryptocurrency. I have over 28 years of experience in the traditional financial sector, with a background in equity derivatives trading. On the other hand, my co-founder, Minhyeong Lee, has a specialized background in the field of cryptocurrency. Another advantage is that there is a significant age gap between us, and our roles are clearly defined, with Minhyeong handling logic development and me overseeing the overall company. As a result, conflicts are kept to a minimum. And, I have a youthful demeanor, while Minhyeong is quite precocious for his age. (laughs)

3. What are your goals for the year and vision for Teyvat Labs?

  • Our plans for the future include publishing cryptocurrency indexes that can be linked to other financial products like ETFs and ETNs. Additionally, we aim to offer artificial intelligence models like OpenAI through our API that can help determine alpha. Our long-term vision is to continue growing and expanding our business model as an investment manager and research firm.

4. What is quantitative trading?

  • Quantitative trading is defined in various ways, but generally involves using mathematical and statistical models to trade automatically. At SamproTV, Quantitative trading combines factors and backtests them to develop effective trading strategies. In today’s trading landscape, strategies that use Commodity Trading Advisors (CTA) to buy and sell futures automatically are also commonly referred to as quantitative trading. There are multiple layers to quantitative trading, including analyzing order books (electronic lists of market volumes and quotes) to generate profits or developing strategies by combining multiple markets. Teyvat Labs is a company that specializes in professional and advanced quantitative trading.

5. What are the components needed for quant trading?

  • Quantitative trading requires the use of coding, mathematical, and statistical skills, and more recently, a knowledge base in economics and psychology has become crucial as well. In order to quantify human psychology, logical thinking is necessary, so quantitative investing requires skills from both domains.

6. How is quantitative trading different from other ways of buying and selling assets?

  • Quantitative trading is distinct from other asset trading methods as it aims to achieve absolute returns, selects strategies with appropriate leverage for the risk reward ratio, and does not involve manual trading. Instead, it statistically analyzes data to use strategies that have a higher probability of success.

7. Why are cryptocurrencies suitable for quant trading?

  • Cryptocurrency is an excellent option for quant trading due to its ease of obtaining data, computerized nature, limited number of participants, presence of individual investors resulting in regularity, and a level playing field without as many big whales as in traditional assets. Furthermore, data is free and easy to obtain in the cryptocurrency market, unlike in stocks or forex where one needs to acquire and purchase data frequently.

8. What data do you collect for quant trading?

  • At present, price data is the most crucial factor for us. We think that it is challenging to verify the effectiveness of fundamental data in the cryptocurrency market. Therefore, we mainly focus on collecting price data and order books.

Learn more about Teyvat Labs’ Algo Strategy! Check out Coinvestor’s website.

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