Cryptocurrency hedge fund

Robin Hood

Robinhood Coop. is essentially a hedge fund in the form of a cooperative with a few twists. The legal entity managing the fund is a Finnish Cooperative which was created in 2012. As of 12th November, they have 926 Cooperative members. The hedge fund has assets worth $ 397,343 as of December 2016

How it works

To become a member of this competitive, you need to pay an obligatory membership fee of 30 Euros, once you become a member you can invest in tranches fo 30 Euros.

How does the hedge fund invest

The hedge fund invests through a software program & algorithm called “The parasite”. The basic principle of the parasite is to emulate the best traders on the NYSE. The system can identify the best traders within a set of instruments on the NYSE. The analysis is done through big data mining. It links data such as individual trader profiles per industry, spreads and market sentiment to filter out the best trades at any given point in time. The parasite is an automatic social-trader, when the most successful historic trades put in the same trade, the parasite emulates it.

The system has been patented US patent office online The Parasite is then covered by these two patents: US Patent 7835968 https://www.google.com/patents/US7835968 and US Patent 8484118 https://www.google.com/patents/US8484118.

The opportunity



The Robin Hood Coop will soon move to the Etherum blockchain. This will be the alt coin which will be backed by real stocks. Once the shares of Robinhood coop are tokenized and liquidity increases, one could expect a rise in the prize of the token.

Strengths

  • The hedge fund will soon be audited by Ernest & Young.
  • The hedge fund works with very minimal cost as it works on volunteers.
  • One cannot lose more money than you have initially invested.
  • The parasite is constantly adjusting it risks level according to the Sharpe ratio, Sortino ratio and Calmar ratio.
  • A part of the profits is dedicated to charitable projects.

Weaknesses

The coop:

  • Currently,the hedge fund members can liquidate their shares only at certain times of the year.
  • At this time it isn’t clear how the daily value of the token will be calculated and published.
  • It is yet unknown, how will the tokens holders confirm they have paid the membership fee how can this be regulated on the etherum blockchain.

The parasite:

  • It is unclear to me how the parasite can identify particular Traders as to my knowledge the trades are anonymous.
  • Few star traders will see profits in different contexts, this is difficult for an algorithm to reverse engineer.

Conclusion

Robin Hood coop, has the noble objective of using part of its profits for specific projects which are selected by the members from all over the world. Given the single, double and even triple-digit price increases of tokens following an ICO, it seems reasonable to see that once these tokens become liquid, there is an opportunity for profits. You can visit them here Robin Hood Coop