In 1973, a study was published in Scientific American wherein the locomotive efficiency of animals was compared in terms of caloric efficiency per meter moved. Of the compared group, humans ranked rather unimpressively, somewhere in the bottom half. Insightfully, the study also measured the locomotive efficiency of a human on a bike, with humans now ranking first place by a wide margin. The study made blatantly evident humanity’s greatest ability; Our propensity for toolmaking.
Bicycle is a cryptoasset trading firm centered around the creation, proliferation, and support of tools that ultimately benefit humanity’s advancement, with a core belief that we express our love for humanity by building beautiful, culturally significant things.
Our approach centers around high-conviction ideas and a robust risk-management standard. We focus on avoiding wasting capital on low or medium-conviction ideas, opting instead to remain market-neutral during periods of low volatility such that we can reduce our return variance and focus solely on compounding our upside on the rare, highly asymmetric opportunities that present themselves. Our core process focuses on;
Alpha Generation: Research and data-oriented approach, asessing ideas from first-principles. Catalyst-driven opportunities and structuarl analysis to assess fair-value, then tactical assesments of market positioning to identify mispricings.
Trade Expression: Patient and tactical execution paired with strategically limited net-exposure (given the volatile nature of the instruments we trade) and value-oriented hedges. Focus on mitigating idiosyncratic risk and reducing the overall variance of our returns.
Risk Management: Tactical position adjustment around broader themes and directional bias with constant quantitative testing to tentatively assess downside risk and portfolio optimization.