The fund will utilize algorithmic trading and seek arbitrage opportunities, as price discovery often remains obscure during initial stages of coin trading.
The principle of classical arbitrage is based on reaping profits from price differences on different exchanges. Prices on the exchanges differ due to the natural effect of decentralization and, for now, the weak development of the market, primarily from a technical point of view, i.e., exchanges are still operating on slow-enough web technologies. Since profit is often obtained from the inefficiencies of the system of execution and aggregation of quotes, classical arbitrage strategies are considered almost win-win.
Statistical arbitration is very different from classic arbitrage. In fact, statistical arbitration has much more in common with conventional trading strategies, based on the calculation of probability. The main task is to reveal the patterns of price movements through different instruments and use them in trade.