HIGH-FREQUENCY TRADING AND CROSS-EXCHANGE ARBITRAGE
Inviting investment and expressions of interest for strategic partnerships.
Little by little a little becomes a lot.
We are launching a cryptocurrency high-frequency trading and cross-exchange arbitrage fund that will utilize smart order routing, high-frequency trading algorithms, and cross-exchange arbitrage algorithms connected to multiple exchanges.
Cross-exchange arbitrage involves the simultaneous sale and purchase of the same cryptocurrency asset on different exchanges. On the exchange where the currency is cheaper, the asset is bought, and where it is more expensive it is sold, allowing profits to be generated from the difference in prices with little or no directional market risk.
Cryptocurrencies have many arbitrage opportunities. Fragmented liquidity creates price differences between similar instruments that trade on different exchanges in multiple geographies and time zones. These factors create inefficiencies dwarfing those seen in traditional markets.
We expect to have direct market access on most centralized and decentralized exchanges, opening up the opportunity for wide-scale cross-exchange arbitrage strategies that will exploit price discrepancies on all cryptocurrencies.
High-frequency trading and cross-exchange arbitrage algorithms are designed to act upon small movements in prices, the sort of movement that would make a few dollars at a small scale, but can deliver large returns with tens of thousands of small but profitable transactions per day. Trade orders are managed by high-speed algorithms opening and closing positions that capitalize on the benefits of automation and speed.
All data about fund performance will be on the blockchain and enforced by smart contracts, and therefore transparent and accessible, enabling real-time reporting of fund value and distributions. Empirical will issue a fund token that will be able to be redeemed at any time, and backed by the value of the liquidity reserves of major cryptocurrencies and stablecoins.
Empirical is led by a professional trader with a thirty year history of trading. The algorithmic trading program is supported by a team of quant developers with ten years experience in building software and implementing algorithmic trading programs for investment banks, proprietary trading firms, brokerage firms, and hedge funds.
We are inviting investment and expressions of interest for strategic partnerships to develop an investor platform for investor onboarding and performance monitoring, and to scale up liquidity reserves on as many exchanges as possible.