What is the TIE-LongOnly Smart Portfolio?

TBanque has partnered with The TIE to develop a unique sentiment-driven investment strategy for our network of traders: TheTIE-LongOnly Smart Portfolio.

The TIE’s proprietary machine learning and language processing models ingest 850 million tweets per day, quantifying the positive and negative tone of conversations on Twitter. TheTIE-LongOnly Smart Portfolio strategy allocates based on positive sentiment, algorithmically rebalancing once per month.

This Partner Portfolio uses highly advanced natural language processing tools to determine market sentiment towards crypto on social networks and then uses this data for algorithmic trading. 

The value of digital assets is driven by supply and demand, and movement is determined by the wisdom of the crowd.

You can find the portfolio here.

 

Who is The TIE?

The TIE is a leading cryptocurrency information services firm providing sophisticated and proprietary digital asset data solutions to buy-side firms and other market participants. The TIE has developed algorithmic cryptocurrency trading models powered by the wisdom of the crowd which have achieved significant historical outperformance and reduced risk as compared to an equally weighted benchmark. Based in New York, New York and Greenwich, Connecticut, The TIE, LLC was founded in December 2017 by co-founders Joshua Frank, Joseph Gits, Ben Latz and Eric Frank.

The TIE has committed to a strict ethics policy ensuring their independence and the integrity of their data and offerings. For additional information on their commitment to trust, transparency, and accountability you can read their ethics statement at http://data.thetie.io/ethics. Follow The TIE on Twitter @TheTIEIO.

 

How does it work?

TheTIE-LongOnly SmartPortfolio’s strategy opens trades based on positive sentiment signals on Twitter. Accessing the Twitter Firehose (the full real-time stream of all tweets sent); more than 850 million daily tweets are expertly analyzed for their crypto sentiment. Rebalancing takes place monthly and is done algorithmically using advanced machine learning techniques.

This strategy algorithmically allocates to a subset of 13 coins on a monthly basis. A minimum of three positions is always held.

Since it presents exposure to the highly volatile and liquid crypto market, the portfolio is designed for clients who are willing to take a high level of risk in an actively managed approach.

The Minimum Investment is $2,000.

 

How does it perform?

Since launching the strategy in October 2017, the algorithm has generated a 281% return after fees, compared to a 41% return generated by Bitcoin alone. Annualized, The TIE’s Long-Only portfolio strategy generated a return of 123% on average, compared to a 29% return from an equally weighted basket of the same underlying crypto assets. Past performance is not an indication of future results.

 

How was it built?

The TIE’s Partner Smart Portfolios were developed in collaboration with Social Market Analytics, an investor in The TIE and a premier provider of quantified sentiment data to the world’s largest financial firms.

 

For general information on Smart Portfolios, please click here.