When you buy Peccala Tokens, we take the funds raised through the purchase and invest them in our trading wallets which are controlled by our Trading Engine. The value of the Tokens you hold is linked to the value of our trading wallets, and you can redeem your Peccala Tokens for their current value in stablecoin (currently USDT) at any time.
In our Litepaper, we share a lot of info about how our Trading Engine works, as well as the specific investment strategies and our tokens:
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Invested funds are held in our corporate account at the Binance crypto exchange, with the funds of each token segregated.
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We trade crypto derivatives, in particular perpetual futures. We currently trade the ~130 currency pairs available in Binance Futures that are settled in USDT.
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Each bot has a unique set of parameters and internal rules, but basically, they all try to answer the following questions: Is there a trend? If so, what’s the probability of further trend amplification?
If the assessment is positive and the trend is upwards, the bot opens (or adds to) a long position. If the assessment is positive and the trend is downwards, the bot opens (or adds to) a short position. Upon uncertainty or a negative assessment, the bot does not use the capital and either waits for the next assessment, or reduces an already open position.
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Each hour, the bots decide if a position is going to be opened, increased, decreased, or closed.
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Approximately 6% of the funds sit in a pool that we use to redeem tokens, and the remaining balance is actively traded. The situation is highly dynamic so there are no global top 5 instruments over time per se. However, at any given time, the PECH strategy allocates on average 28% of the capital to the top instrument. On rare occasions (~2% of the time) this allocation exceeds 80% of the capital. The PECM strategy is more conservative, and the top instrument uses on average 10% of the capital.
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No. Humans are involved only in creating, evaluating, and implementing the strategies. No discretionary decision-making is involved in the trading. The aim is to guarantee that every single trading decision has been thoroughly backtested. Furthermore, we have a policy of zero emotions in the trading decision-making process.
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The drawdowns are not only comparable to other crypto products but actually smaller. Bitcoin, one of the least volatile crypto assets, has a max drawdown of approximately 90%, whereas that of PECH and PECM are 65% and 23% respectively.
We are imposing strict conditions on the bots in the testing phase before they are deployed. One of these conditions is that the drawdown should be less than other crypto products. We deliver crypto returns with controlled risk.
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