THE TRIDENT CRYPTO INDEX FUND

Trident Crypto Index Fund
4 min readMay 9, 2018

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Overview of the Crypto Index

Crypto index investing is likely to experience exponential growth such as it is the case in traditional stock markets. With low odds of picking the best portfolio that will post stellar results, a crypto index fund reduces the probability of making losses and spreads any losses and gains.

There underlying beneft of the index is that there is no particular reliance on one crypto asset such as Ethereum.

The crypto assets have been primarily seen as unacceptable risks to individual non-tech savvy investors partly because developers use complicated technical jargon in explaining the technology.

The Trident Crypto Index Fund will demystify this notion and remodel crypto asset investments as high risks that can be spread. With a global crypto index supporting some exchanges, payment services, and services, investors will partake in investing from the comfort of homes and offces.

Weighting the Cryptocurrencies

The S&P 500 weighs the constituents purely by market capitalization. This approach is applicable in established equity markets mostly the top 50 components in the S&P 500 factor more than half of the total index weight. The situation is not the same in the recently established crypto asset markets where Bitcoin alone accounts for more than 40% of the total crypto asset market capitalization. To eliminate data biasedness, the Trident Crypto Index Fund index is computed by proportionately weighing each component to the square root of its market capitalization.

Calculating the Index

The crypto asset markets are very volatile as they are susceptible to shockwaves. The ten share constituents have to be monitored continuously to have up to date data unlike the components of, for comparison, the S&P 500. The Trident Crypto Index Fund is evaluated after six months and the index is reweighed monthly for precision and data accuracy. It is impractical to reweigh the top ten crypto assets daily or weekly due to the volatility of the market, additionally; constant reweighing brings confusion and might misrepresent the market facts. Trident Crypto Index Fund uses the moving average approach to smooth the market capitalization data.

Between rebalancing dates, the index value is defned as:

Where W is the weight of the jth name in the index, IT is the value of the index at time T and, P is the price of the jth name as a function of time. On rebalancing dates, the weights are normalized in such a way that the index value is the same, whether it is computed with old or with new weights. The index is calculated in Realtime. All values refer to the close of the previous day, considered to be at 0000 GMT

Data Evaluation and Recommendations

The Trident Fund Index is a better investment than individual crypto asset portfolios. Since the beginning of 2016, the TDC10 has gained by a factor of 154 as at January 2018 despite the volatility and price depreciations witnessed across the market. For example, The Bitcoin gain was only by a factor of 42 in the period under review.

This illustration underpins the benefts of investing in the TDC10 as an investor gains from all the constituents if there is overall price infation and protects their investments in a zero-sum game scenario if there is a mix of fortunes on the top ten components.

The TDC10 is the most accurate instrument for measuring the whole cryptocurrencies market, and the Blockchain sector in general. It represents a benchmark for asset managers and traders, a useful tool for investors, and a replicable index for ETFs and passive funds. In summary, the TDC10 is the standard for the cryptocurrencies industry.

TRIDENT CRYPTO INDEX FUND INVESTMENT STRATEGY

The Trident Investment Strategy is anchored on three facets. The facets ensure that the investors gain and the losses are spread across the constituents. Important to note, the risks are purely speculative given the uncertainty of the crypto asset market.

  • Top Crypto Assets

The best performing crypto assets are merged into a single coin, the TDC10. This coin represents an investor’s share into the Trident Crypto Index Fund.

  • Tested Strategies

Trident Crypto Index Fund has spent two years researching on the most rewarding strategy. The methodology used in calculating the approach as illustrated herein is a representation of the reality in the market.

  • High Returns

TDC, being a representative of best blockchain strategies, will reap high returns for investors. The scenario is in contrast to individual blockchain portfolios that lack the aggregate component of performance not to mention the risk posed by volatility.

  • Trusted Compensation Plan

High risks come with high returns; Trident Crypto Index Fund has demystifed this statement and changed it to- Low risks come with high yields. This strategy will revolutionize cryptocurrency trade and make the TDC10 to be sought after by investors. The gains are realistic, smart, traceable and justifable.

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