Arbitration

Although born in the stock market, arbitrage can also be used in cryptocurrencies. However, it requires patience and attention to the price of crypto assets due to market volatility, thus demanding a broad and effective technological infrastructure and extensive market knowledge.

Unlike the stock market, where brokers simply pass orders to a centralized stock exchange, this does not exist in cryptocurrencies. Thus, each exchange operates in a completely segregated manner, with its own rules, deadlines, fees, clients, and quotations.

In summary, arbitrage opportunities may arise, involving buying an asset to immediately sell it on another exchange for a higher value. Bitcoin arbitrage can exist between different currencies, even within the same exchange.

The prices of assets can vary significantly in different markets. With cryptocurrencies, it's no different: the price of Bitcoin (BTC) and other cryptocurrencies changes depending on the exchange where the trade is conducted.

Avalon Capital works by identifying and executing operations in these price differences. Among different brokers, it aims to profit relatively easily and safely with an investment strategy known as arbitrage.

Another crucial aspect is paying attention to premiums, i.e., variations in the value of Bitcoin. A millisecond can make all the difference when it comes to profiting from arbitrage.

Our traders use tools to signal arbitrage opportunities, indicating where Bitcoin is more expensive and where the crypto asset is cheaper.

Another positive aspect of arbitrage lies in the high volatility of cryptocurrency prices. This volatility allows for price differences that can be exploited by traders.

This demonstrates how complex this operation is, not being as simple as its basic concept may seem.

Our History

After three years of strategy development and testing, Avalon Capital is launched by a team with over 10 years of experience in the cryptocurrency market. From the beginning, our partners are also the fund's largest investors.

Our Algorithms

Our automated algorithms were developed by our technical team and implemented in secure cloud computing environments. Each routine is extensively tested, subjected to stress tests, and restricted risk controls.

Risk Management

All our positions are monitored 24/7. Automatic routines ensure limited exposure per currency and the parity of arbitrage positions. Metrics such as Net Exposure and Value at Risk are carefully controlled by the risk team.

Our Portfolio

Our portfolio consists of positions bought and sold in the crypto market. Most of our positions are based on asset movement, in derivative instruments, without taking any fundamentalist view of currencies.

Performance

Our investment strategies explore the "spreads" (differences between brokers) in the cryptocurrency market, systematically generating returns uncorrelated with any other financial market.

10%

Controlled volatility

Low correlation with major markets

Low correlation with other funds

Arbitration

How does the trading desk work?

It is a technique that aims to generate gains with price variations of the same asset in different markets.

Learn More