Strats Concept
Last updated
Last updated
Rank is among the first DeFi protocols whereby any user may function as a ‘fund manager’ by executing their strategy directly via a digital container hosted on the Rank platform. This enables users to create and deploy investment strategies on demand, after which anyone may invest in them. As described above, the Strat creators fill out a list of parameters (e.g., asset, expiration, etc.) and provide specific conditions for a trade signal to occur. Creators may implement either simple strategies whereby an asset is bought or sold at a certain time, or more complex strategies that leverage data points and indicators to create trade signals. Access to risk management tools such as standard stop/limit orders will be provided.
As seen in the diagram above, this example shows three Strats created by three different users (User A, B, and C). The creator simply initializes the Strat and provides a strategy to follow, with fees earned as investors use the Strat. On the other end, investors may browse and select Strats that best fit their investment needs by depositing stablecoin assets (for example, USDT) or crypto (for example, ETH) with the goal of a return upon expiration/exit. Creators may also adjust their fee schedules to charge different management and performance fees, with a portion of both fees allocated to Rank. Investors also have access to a variety of performance tracking tools available in our innovative listing section. For the first time, traders without a deep programming/coding background can ‘module’ their own investment strategies with standard technical indicators and have the Rank platform execute it for them. Usually, the trading programs that offer the necessary tools to do so are difficult to code (e.g., MetaTrader, TradeStation, etc.) and typically require a software development background. However, with Rank, anyone can easily become an algorithmic trader.