Decentralized Asset Analysis & Alpha Generation(FRX)

Manti Tarak
3 min readDec 18, 2021

Decentralized Asset Analysis and Alpha Generation (FRX) seeks to provide a platform on which Hedge Fund traders can tailor their risk/return profiles in a way that is a hybrid between Access-pooled and Full-replication strategies. Fractionally investable equity securities will be selected, parsed and exposed to the FRX universe of hedge fund managers.

FRX traders will have the ability to tailor their risk/return profiles, with a hybrid between Access-pooled and Full-replication strategies.

Decentralized Asset Analysis and Alpha Generation (FRX) seeks to provide a platform for better client experience by both AAI and Manager. FRX will use blockchain technology to facilitate the following:

Alpha generation is what every HF trader thirsts for, right? Why do full replication strategies fail to generate alpha? Take FRX as an example. The smart credit fund will not be able to fully replicate the S&P 500 index since they are not sophisticated enough to utilize the arbitrage opportunities like the large size professional investors.

Frustrated by this, some HL traders switch to access-pooled funds. However, traditional APs assume the market is efficient and use replicable “index models” (with many assumptions) to generate their risk/return profiles. This brings risks of its own, especially given asset price sensitivities inherent in illiquid market segments.

Hence, how does one attain a hybrid solution that recognizes market inefficiencies and provides opportunities for true alpha generation?

FRX aims for this solution by providing a platform where highly sophisticated hedge funds can customize their asset pool structure from different segments of illiquid markets according to their risk appetite and generate “alpha” character with underlying arbitrage potential while applicable safe guards are applied so as to protect investors from over-leveraging and lay off risks

The FRX platform is a patent pending value-add for Hedge Fund traders by combining significant liquidity, unique trade structures and a range of sophisticated analytical tools. It is currently an operational prototype and will be available as an Alpha Incubator strategy and as open source code.

Hedge fund trading strategies are exciting. The 30% alpha they’re reporting isn’t. FRX is a decentralized approach to trading that combines the best of both real time data access and hands-on strategy replication found at hedge funds, creating a new opportunity for hedgies and institutions alike.

Alpha Generation platform (ALX) utilises Centralised Capital Mandates, and Distributed Risk Management in order to enhance the risk/return profile of client portfolios.

Invest in hedge fund strategies. Invest in a diversified portfolio of hedge funds. Design your own diversified portfolio of hedge funds that best suits your risk return profile. FRX allows you to invest in crypto currency hedge fund strategies that generate alpha.

Hedge Fund managers benefit from an affordable and efficient system that performs the trade operations on their behalf. This creates an incentive for Hedge Fund managers to provide liquidity to the platform and is a new source of income for these traders.

The FRX platform was created by traders for traders and understands their needs. All parts of the FRX ecosystem are interrelated, designed and tailored to mitigate operational costs associated with a multi-strategy firm and provide information transparency to the trader and investor.

FRX is a decentralized trading platform and protocol layer that creates accurate, near real-time measures of investor sentiment, order flow, and deal activity. Our Ethereum smart contracts can connect to any global exchange in the world and create an educational portal for novice traders to learn how to invest like an institutional trader, regardless of their wealth or financial knowledge.

The FRX token is an ERC20 Tool that allows you to build your own Trading Strategies through our MT4/MT5 based software suite. Unlike other tokens in the space that are simply for speculative trading, FRX has a real purpose that creates value for its users

Frx.Network is an open and transparent protocol designed to bring efficiency and seamless liquidity to the decentralized space. We use a full information supply chain system accessed through real-time feeds populated by financial institution data providers, custodians and other service providers.

More Information

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