Lili Wang (QIS Capital) on AI powered cryptocurrency fund.
Lili Wang, Founder of QIS Capital, joins the show to explain how an AI powered cryptocurrency fund can minimize drawdown risk and / or increase return while investing in bitcoin and cryptos. In this episode:
- How she started QIS due to annoyance with her husband checking cryptocurrency prices day and night and to automate cryptocurrency investing
- How she was frustrated because Economics assumes everyone is rational but reality is sentiment driven
- How she realized that in investing, investors get an edge via information but how today information is accessible to everyone and so old information based strategies are not relevant anymore
- How sentiment and community is now extremely important in investing
- How her fund's goal is mainly to limit drawdowns and create alpha vs the beta strategy of HODL which is just buy and hold
- Informs the results that QIS has achieved which is double the bitcoin returns with a quarter of the drawdown
- How they use arbitrage and market making opportunities but mainly directional bets
- How manual oversight is necessary even with an AI powered fund
- Why don't they only look at technical analysis for cryptocurrency prices
- How they had a very small drawdown in March 2020 vs the actual massive drawdown in the cryptocurrency market
- Why she feels that FIAT currencies have become very political and how there is something wrong with centralized finance
