1. Strategic partnership

We are seeking strategic go to market partners to onboard end users on our trading blackbox in a profit-sharing partnership. We deliver a portfolio of proprietary trading algorithms that promise to boost trading activity with existing clients, increasing commission fees, while providing a proven institutional grade trading algorithm for users.

The technical implementation is straightforward while providing a library of launch package content with promotional elements like a press release, client messaging, frequently asked questions and disclaimer. 

The onboarding app is a 3rd party tool that generates entry and exit signals on your exchange. Users can allocate an amount of their own choosing to follow our proprietary signals with time-tested risk management protocols. 

Best regards,
The Nordic Crypto team


2. Blackbox algorithms

The underlying algorithm is a culmination of 15 years of trading by our Chief Economist, Kristian Siggaard-Jensen, during his time in global investment banking. He has a 12-year winning streak averaging double-digit returns, and furthermore, he was for a period of 3 years consistently ranked among the top 3 global forecasters in FX Weeks G10 currencies.
We have a portfolio of 4 master algorithms calibrated to cryptocurrencies. They cover short to long term signals with both LONG and SHORT capabilities. We setup the blackbox for the exchange to generate signals on selected coins that meet minimum liquidity requirements. We assess the API trading capabilities of the exchange, liquidity analysis and fee structures. We backtest or algorithms using exchange specific fee and liquidity to determine which algorithms and coins will be most profitable for the client. 
The following chart is the short term alpha 2 algorithm showing both long and short positions. Click here for a detailed factsheet with trading log.
                  Chart: Blackbox Alpha 2 performance split between long and short positions. Naked returns before fees. No reinvestments. 
                  Table: Blackbox Alpha 2 algorithm with consolidated long and short positions 2015 – 2018 excluding fees. 

3. Exchange setup

Step by step guide with exchange requirements to deploy the Nordic Crypto trading services. The guide outlines the 3 different implementation models and respective requirements for API and webhooks. Click here to download the technical implementation guide. 
The exchange partnership often includes plans to launch the service with the external app and target VIP users first. With a succesful launch and pending the exchange’s development resources, the service can be seamless integrated on the exchange platform, allowing users to sign up without ever leaving the exchange platform. In the long term, all users could potentially sign up with the service, reaching the user base with few or no trading activity.
Table: Comparison table for the three implementation models. Click here to download the technical implementation guide.  

4. Stress test

Acceptence testing is performed prior to launch to ensure the Exchange API, order execution and Nordic Cryptos server capacity is optimized for acceptable exeuction and performance. We work together to stress test order execution, liquidity and bulk API trading.

Frequently Asked Questions

5. Onboarding app

The exchange can send users directly to the external onboarding app where they will be guided through a brief one time setup wizard to specify the users personal API keys and designated amount to allocate to the automated trading service. Furthermore, we have provided a sign up page with promotional content and sign up instructions. 
Figure: Sign up page with promotional content https://nordiccrypto.com/signup

6. Press Release

This is a draft press release ready for a qoute and customization: 

[CITY, Country, Month DD, 2019]  / [EXCHANGE] is proud to officially announce our partnership with Nordic Crypto in offering their institutional-grade algorithmic trading Blackbox for our [CLIENT TYPE]. In collaboration with Nordic Crypto, [EXCHANGE] is excited to offer a differentiated services for our [CLIENT TYPE].[EXCHANGE] has been pursuing partnerships with third party providers, who can provide better trading tools for the high volatility of the cryptocurrency market, while being able to take advantage of market trends.

The Blackbox is continuously scanning the market, and creating buy and sell signals, based on 5 years of historical data and proprietary algorithms. [EXCHANGE] clients can sign up for the Blackbox service and allocate an amount to begin trading with Nordic Crypto’s proprietary, rule-based algorithmic tool that auto-generates entry and exit signals in cryptocurrencies. The Blackbox provides historical performance and a transparant trade-by-trade analysis.

As of today, this service is up and running, and [CLIENT TYPE] are in the process of onboarding.

This service, as long with other [CLIENT TYPE] features, is another example of [EXCHANGE] focus on creating new and user-centric services in the market.

[INSERT QUOTE FROM EXCHANGE]

Tao Bindslev, CEO at Nordic Crypto says: “I am excited to work with [EXCHANGE] and offer this exclusive service to their [CLIENT TYPE] clients. [EXCHANGE] is ready to launch our proprietary algorithms to be among only a few exchanges that offer an edge in the market. We have been successfully testing the Blackbox with [EXCHANGE] API for latency and liquidity. We strongly believe that the cryptocurrency market is in need of institutional-grade trading tools to bring maturity to the space.”

The Blackbox is initially made available to [EXCHANGE] [CLIENT TYPE] starting today.

For more information, contact [EXCHANGE] at:

[CONTACT INFORMATION] 

Press information: [LINK TO SIGN UP PAGE]

7. Client messaging

Below can be used in direct mail, notifications or ther client messaging channels: 
[EXCHANGE] is proud to announce our partnership with Nordic Crypto, who is bringing a new Blackbox trading service to our [CLIENT TYPE]. The Blackbox is a rule-based algorithmic trading solution that will significantly decrease exposure to the risks inherent in the cryptocurrency market. This Blackbox is aligned with [EXCHANGE] mission to create better trading tools for users by bringing an institutional grade investing and risk management tool to the cryptocurrency market. Users can allocate an amount of their own choosing to follow the proprietary signals. The underlying algorithm is a culmination of 15 years of trading by Chief Economist Kristian Siggaard-Jensen during his time in global investment banking. He has a 12-year winning streak averaging double-digit returns and furthermore, he was for a period of 3 years consistently ranked among the top 3 global forecasters in FX Weeks G10 currencies.

8. Frequently asked questions (FAQ)

Questions below are intended for the exchange team. End user FAQ are seperate and can be viewed here on our onboarding page.

Frequently Asked Questions

How can we verify the trading record of your trading algorithms?
We provide full transparency by making the data for every trade generated since the inception of our algorithms available. We provide the end user as well as our partner with actual timestamps and dates of every trade. Furthermore, partners can sign up for a trial account and monitor the live signals to verify the reliability and performance in real time.

Finally, the team behind has over two decades of managing risk for clients and investment bank’s own risk books. We believe that this is the closest we can come to giving a full view of what we do without actually revealing our proprietary coding.

What happens if the Blackbox fails to execute as expected?
From a compliance perspective, the disclaimer leaves the full responsibility and risk with the end user. However, Nordic Crypto will do everything within its power to support the end user with education and guidelines in setting up the Blackbox. We recognize there is some reputational risk for the exchange to promote any new service prior to adoption. The end user will be made aware that with every chance of making trading profits, there is a risk of losing money. However, by taking all of the variable factors into account, we minimize the risk factor significantly with narrow stop losses and strong risk management.
How do you deal with X customers getting the same signal at the same time?
The number of clients that we allow to receive the same signal relies on numerous factors.

  • The global average volume for the specific crypto cross
  • Daily average volume – specified in time zones
  • Analysis of order book – specified in time zones
  • Execution time/latency when rolling out the algorithm for the client
  • Average trade ticket size

We come from an institutional trading background, specifically market making, including managing the risk of flow and the liquidity issues this entails. So this is not a static process. It is a dynamic process where we rely on our vast knowledge and experience to help the individual end user get as close to the actual execution that we would expect if we were using the platform to execute these signals. Also, this is only a key issue when it comes to Alpha 2. Alpha 1 has the ability of iceberg orders throughout the day, and the returns should not be highly sensitive to this type of execution. Alpha 3 adds liquidity to platforms with Alpha 3 order generation capabilities.

The above analysis gives us limited partnerships, which is why this product will retain a high degree of exclusivity, and therefore, can not be available for the vast majority of the crypto retail market as this would undermine the alpha generation.

What do you expect from the exchange regarding marketing of the product?
Nordic Crypto can support partners on content regarding algorithms, our Blackbox and the team behind it. Furthermore, we can assist with a promotional package such as statements for unique selling points, press releases and visual support in the form of performance charts and tables.

We expect the partnership to be communicated continuously to your clients via your marketing channels. This could also be used as a VIP service for your most valuable clients, which they would not be able to find at any other crypto exchange.

Are there any possibilities for users to modify the algorithm settings?
The user can choose between the different proprietary Alpha 1,2,3, and 4 and predefined coin selection. The current algorithms will not have a customization option for clients to adjust variables. It would not benefit the retail user to modify the settings of our bots, as there are no traditional analysis or price patterns included in the calculations.
How long does it take to see that it works?
The time between signals varies with different markets. However, we recommend that the exchange observes 10-15 trades to have enough data points to verify against performance metrics and order execution fulfilment. This will generally be achieved within one month.

 

How long does it take to add another exchange to the Blackbox?
It takes on average one day to integrate if the exchange is up to date on their APIs.
How do we make sure we have enough volume?
Our algorithms ensure that an appropriate volume is traded to protect the onboarded users from low liquidity coins or exchanges.  
What is the effect of the spread in the market?
The spread in the market is related to the slippage, which in turn is associated with the latency. This affects how many pips need to be cleared to fill the order.
What order execution time can I expect?
The order execution time is typically less than 5 seconds. However, it depends on external factors including but not limited to the exchange API and liquidity.
What is the time horizon on profitability based on past performance?
It is random if the user earns profits during the first few weeks as the algorithm generates trades in all market conditions with the strategy to create consistent positive returns on an annual basis. The Nordic Crypto portfolio of algorithms consistently generates positive returns depending on the selection of coins and fees. We recommend users test the algorithm and observe how we perform and then leave funds for one year or longer.

The user can always overrule the transaction and disregard the information. However, it is not recommended to close a trade at an arbitrary point, as it will kill the potential profit. We suggest users sign with multiple algorithms and coins for best results in spite of market conditions.

How many coins are currently supported with our algorithms?
Several factors determine the number of coins available for our algorithms. The selection of coins is made in collaboration with the exchange concerning liquidity and trading capabilities. For example, if the exchange can place the orders above/below market, we would offer a broader rangeof signals than exchanges that only support market orders.

 While some exchanges may be able to fully automated trading on 10 coins, others may need to start with just 1 or 2 due to exchange restraints. We analyze the volume, spreads and test for latency to determine what options the exchange has. We also have a volume filter that can ensure you do not become a whale.

Are there any volume requirements for the algorithms to work on my exchange?
In general, the total algorithm triggered volume should be below 10-20% of the exchange volume of the trading pair in question.
How long has the Blackbox been live trading?
We have been live trading algorithms since the summer of 2017, with the long-term Alpha 1 being traded the longest. Our short-term algorithms, Alpha 2, Alpha 3 and Alpha 4, have been live trading since the summer of 2018.

9. Disclaimer proposal

Any opinions, news, research, analysis, trade recommendations or other information is provided as market commentary and for educational purposes and does not constitute investment advice. Any statements about profit or income expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibility for your actions, trades, profits or losses, and agree not to hold [INSERT EXCHANGE] and any authorised distributors of this information accountable in any ways. [INSERT EXCHANGE] will not accept liability for any loss or damage, including without limitations to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Cryptocurrency trading has large potential risk. You must be aware of the risks and be willing to accept them to invest in the cryptocurrency markets. The information contained within is neither a solicitation nor an offer to buy/sell cryptocurrencies. No assumptions are being made that any account will or is likely to achieve profits or losses similar to those discussed.

 [INSERT EXCHANGE] shall not be responsible for any loss arising from any investment based on any trade idea, forecast or other information contained herein. The contents of this publication should not be considered as personal investment advice or be constructed as an expressed or implied promise, guarantee or implication by [INSERT EXCHANGE] that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Traders in accordance with the trade ideas in an analysis, especially, but not limited to, leveraged investments such as cryptocurrency trading, can be very speculative and may result in losses as well as profits, i.e. if the conditions mentioned in the trade idea do not occur as anticipated. Prior to making any investment or entering into any transaction, you should carefully consider your financial situation and consult your financial advisor in order to understand the risks involved and ensure the suitability for you of any investment or transaction. You are solely responsible for the management of all [INSERT EXCHANGE] trade ideas entries and related orders, and [INSERT EXCHANGE] takes no responsibility for any loss related to trade ideas from [INSERT EXCHANGE].

The product described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. All expressions are subject to change without notice. Opinions expressed herein may not be personal to the author and reflect the views of [INSERT EXCHANGE].