Understanding Glitch Financial Strategies

When onboarding to Glitch Financial, you will have the option to choose from multiple strategies. This article will summarize all the data points you can view when determining which strategy best suits your interests and risk profile.

Assets - Here, you will find a bullet list of all relevant assets that can be traded in a selected strategy. 

• Crypto-related strategies can include the following crypto assets: BTC, ETH (XRP, SOL, and DOGE coming in the future). 
• Forex-related strategies can include the following FX currencies: AUD, CAD, CHF, EUR, GBP, JPY, MXN, NZD, and USD. 

Key Statistics - You will find data that covers the following metrics: 

• Max Drawdown - Max Drawdown measures how much a strategy or investment drops from its peak value before recovering; it is typically expressed as a percentage. It emphasizes the decline after the peak, providing insights into the downside risk in extreme scenarios. 
• Sharpe Ratio - The Sharpe Ratio is a risk-adjusted performance metric that measures an investment's return (often the excess return) per unit of risk taken, with risk represented by the standard deviation of returns. A higher Sharpe Ratio indicates better risk-adjusted performance. 
• Omega Ratio - The Omega Ratio measures the balance between winning and losing days. It is calculated by dividing the sum of positive daily returns by the absolute value of the sum of negative daily returns. A higher Omega Ratio indicates a more favorable risk-reward profile, meaning that the investment is more likely to generate significant returns relative to potential losses.

Earnings - You will find data that covers the following metrics: 

• Return - The strategy's return refers to the financial gain or loss an investor experiences over time. Returns are typically shown as a percentage or fiat amount. 
• Max Realized Losses - Max Realized Losses refers to the largest loss realized on a closed trade in the past.

As Glitch Financial evolves, our research team will continue to develop, test, and deploy new strategies, all of which will be available to you.  Please let our customer success team know if you have any other questions about how the Glitch Financial team produces and analyzes its strategies.