How Pynk uses 3 time horizons for market beating investment returns

Seth
Pynk
Published in
4 min readMay 8, 2019

Seth Ward | CEO/co-founder

Three really is the magic number here at Pynk.

If you spend any time with us you’ll see it popping up again and again (and again).

Starting with the three forms of intelligence we use to make better investment decisions (Crowd Wisdom + Artificial Intelligence + Expert Insight).

We also have three different ways to invest, over three different time horizons.

1) SHORT TERM: Active Trading

The ‘sharp edge to our blade’ and the focus of our Alpha and Beta products is Active Trading.

This is where we make daily or weekly trades on the futures markets for a number of assets.

The first three being — yes there are three of them — Bitcoin, Gold and Nasdaq Composite.

Our Pynksters are the members of our crowd who provide the Crowd Wisdom data into our algorithms.

Every day, they tell us what they think the price of these assets will be in 24 hours’ time.

We reward them for doing this with Wisdom Points that ultimately earn them a share of the profits of our fund.

We then process these predictions and decide who to listen to today based on market conditions and each individual’s track record along with a whole bunch of other data including Technical Analysis, market sentiment and live trades.

We operate multiple strategies so we make a number of trades on each asset every day according to our risk management strategy.

This Active Trading approach allows us to profit regardless of whether the assets are going up or down in price, and it’s particularly profitable when markets are more volatile.

2) MEDIUM TERM: Investment

Our less active Investment approach launches with the Beta version of the Pynk app in May/June 2019.

Here we make medium term investments on a timescale of weeks to months.

Again we are starting with Bitcoin, Gold and Nasdaq Composite.

These three assets are fairly ‘non-correlated’ which means they don’t share the same market cycles of highs and lows.

We use a number of inputs from our Pynksters — including moving averages of their daily/weekly price predictions as well as their sentiment for each asset over the coming months.

This is again filtered through our AI as well as our own fund managers’ expert analysis and insights to decide when to take profits and when to increase our holdings of each asset.

This is a much safer part of the Pynk Fund and will give us more standard returns than the Active Trading.

But we believe that the combination of Crowd, AI and Expert Insight gives us an edge so that we can move in and out of each asset close to the highs and lows of their lifecycles and beat the market.

3) LONG TERM: Startup Investment & Incubator

Fittingly, our long term goal is to build out the long term investment arm.

This is where we help launch early-stage ‘impact’ tech startups that focus on changing the world.

Here, what our Pynksters do is a little different and more varied.

For our incubator, they help us to fix important problems by coming up with or refining ideas for businesses, products and services that solve them.

And some of them will end up actually working in those businesses and earning equity of their own.

This is known as ‘CrowdSourcing’.

But the entire Crowd will benefit because Pynk will take its own equity stake for bringing the idea to reality.

Over in the Startup Investment side of things, projects will be brought to us and our Pynksters will review the key aspects (Idea, Team, Tech, Competition and Finance).

They’ll also contribute to this process by conducting research and due diligence to see if there’s anything amiss.

This will give us an indication of how popular the startup is.

Our AI will filter these votes and our fund managers will conduct their own research and due diligence.

The votes of all three parts of the system will be combined to determine whether (and how much) we’ll invest.

The returns from this part of the fund will generally take years to bring substantial returns.

But this is where our fund can really make a difference, and it’s the part that gets a lot of our Crowd and Investors really excited.

When combined, these three investment horizons work together to allow us to significantly outperform the market yet minimise risk over the long term.

They also let us gradually build up a ‘war chest’ that can be deployed into projects that change the world.

Because here at Pynk we believe that in today’s enlightened world, doing good is 100% compatible with making significant investment returns.

And we also believe that AI works best when it harnesses People Power and works in the interests of humanity.

We’re here to protect our investors’ money while rewarding our Crowd fairly for the contribution they make to profits.

And our three-pronged approach is an almost magical way to invest.

Just imagine being able to make one investment but benefit from the research and insight of thousands of people worldwide PLUS the world’s most groundbreaking combination of Human + Computer Intelligence.

You’re imagining something that’s already reality.

You’re imagining Pynk.

Disclaimer: Please bear in mind that this information does not constitute any form of advice or recommendation by Pynk One Ltd. and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. When investing, your capital is at risk and you may recover less than the initial investment.

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