RIDE THE NEW WAVE OF CRYPTO. We invest your money in a cryptocurrency portfolio based on your individual preferences.

Transcription

1 RIDE THE NEW WAVE OF CRYPTO. We invest your money in a cryptocurrency portfolio based on your individual preferences.

2 1 MARKET POTENTIAL Automata brings automated investment management to cryptocurrencies. We will be the first robo-advisor specifically designed to protect our client s capital by using algorithmic trading strategies. Cryptocurrency adoption and assets under management (AUM) of automated investment management platforms has been growing significantly in the past and both are expected to continue to do so in the future ,100 9,000 8,000 7, , , , ,000 5,000 4,000 3,000 2,000 1,000 0 BTC wallets in million Automated investment management platforms (including robo-advisors) AUM in USD billion

3 2 PROBLEMS SOLUTIONS We are solving fundamental issues that currently prevent mass retail adoption in cryptocurrencies Problem Solution Retail investors find it difficult to invest in cryptocurrencies We offer investments from as little as 1. Create a risk profile and your money is invested automatically Problem Solution The high volatility in the market is not suitable for retail investors The volatility of all of our portfolios is kept low by using algorithmic trading strategies Problem Solution Portfolio Management for cryptocurrencies is only available for high net worth individuals We provide well-managed, bespoke cryptocurrency portfolios for everyone

4 3 COMPETITIVE ANALYSIS Currently, there is no cryptocurrency-specific robo-advisor in the market. Investors are constrained to choose between signal providers, cryptocurrency buy-side institutions and cryptocurrency trade execution platforms. Trade execution platforms Trading robo-advisors Automata will unify these three options and simplify investing in cryptocurrencies by providing tailor-made, adaptable cryptocurrency portfolios. Buy-side institutions (HF, VC, AM)

5 4 OUR DISTINGUISHING FEATURES COMPARED TO TRADITIONAL ROBO-ADVISORS Investment strategies uncorrelated to the market The vast majority of robo-advisors in traditional markets are passive investors and therefore strongly correlated to equity and bond markets. Our active management approach is uncorrelated to any market. The cryptocurrency market has huge potential The cryptocurrency ecosystem is expected to grow strongly over the next years and decades. This wider adoption will lead to a stronger demand for cryptocurrency asset management solutions. We benefit from bear as well as bull markets Traditional robo-advisors are buying the market (long-only strategies) and suffer from market downturns. We profit from bear markets as well as bull markets by developing long and short trading strategies.

6 5 BUSINESS MODEL Our focus lies on growing our user base rather than solely increasing our Assets under Management (AUM). A high number of platform users allows Automata to open additional revenue streams in the future. Barriers to entry will be low as monthly fees start from only 2 and minimum investments from 1. The first 3 months will be free. Customers Premium customers Yearly management fees % based on AUM Minimum investment 1 1,000 Performance fees 10% per year 10% per year Additional revenue streams Product recommendations via partnerships With a large user base it will be easier to build partnerships and offer a wider range of services Development of new in-house products (i.e. ICO investment strategies) Interest on uninvested customer cash Our clients remaining cash balance will be used to earn a risk-free return (i.e. invest in bond ETFs)

7 6 FEATURES Micro investments Invest from as little as 1 and withdraw your money at any point in time. Bespoke cryptocurrency portfolios We offer an almost infinite number of different diversified portfolios. Security and Reliability We adopt institutional grade security measures designed to keep your investments safe. Automated investment strategies Our system focuses on risk management, leaving you to watch your capital grow sustainably. Rebalancing methodology The model reacts to market moves instantly, and outperforms traditional buy and hold strategies. Round the clock support We have a specialist customer service team trained and waiting to assist you. And many more services available at

8 7 OUR APP IS CURRENTLY IN ALPHA MODE - BETA TESTING STARTS IN OCTOBER Click here to try our MVP: investment.automata.live Check your performance at a glance Find out your current portfolio allocation Set it and forget it with weekly and monthly investment options

9 8 INVESTMENT APPROACH STRATEGIC ASSET ALLOCATION We use the following strategic asset allocation models to achieve high, risk-adjusted returns: CPPI rebalancing: increases or decreases your exposure to the crypto market based on the overall market sentiment. Volatility autocorrelation: adjusts cryptocurrency weightings based on the current volatility in the market as large moves tend to be followed by another large move in either direction. Trend analysis: enhances returns significantly and helps to determine a market reversal. Diversification: risk-adjusted returns can be enhanced by diversification; although Bitcoin is strongly correlated to other Altcoins, tokens and coins from different sectors and applications show lower correlations.

10 9 INVESTMENT APPROACH STRATEGIC ASSET ALLOCATION We isolated each of our investment models and compared it to a Bitcoin buy-and-hold strategy. Each model alone is able to add value as it is superior in terms of Sharpe ratio and Calmar ratio compared to the static Bitcoin investment. Comparison of the Sharpe ratio and Calmar ratio according to each model Max drawdown = Sharpe ratio = (Trough Value Peak Value) Peak Value (RP-RF) σp CPPI rebalancing where RP = average return of the portfolio RF = risk-free rate σp = standard deviation of portfolio returns For simplicity, we assumed a risk-free rate of 0%. Sharpe ratio Return/Max drawdown (Calmar ratio) *Volatility autocorrelation and trend analysis were analysed together as the 2 concepts complement each other

11 10 INVESTMENT APPROACH TACTICAL ASSET ALLOCATION Tactical asset allocation helps to determine the right entry and exit points to enhance returns Systematic Technical analysis Discretionary Market Analysis Technical Indicators Moving Averages Relative Strength Index Stochastic Oscillators Patterns Recognition Based on the fact that history repeats itself Elliot waves analysis Used to determine market cycles and forecasts market trends Fundamental analysis: news trading, events trading Human interaction is added in times of extraordinary news or expected news with an uncertain outcome

12 11 RESULTS Results for different risk profiles Below are the results of 5 of our different risk profiles. We have back tested our investment strategies from 1 January 2016 until 31 December /1/16 3/3/16 18/5/16 11/7/16 23/9/16 2/11/17 13/1/17 22/3/17 28/5/17 3/8/17 19/10/18 31/12/17 Extreme Aggressive Balanced Moderate Conservative Performance (since 2016) Annual return Max drawdown Sharpe ratio Return/max drawdown Conservative 232 % 82 % % Moderate 390 % 121 % % Balanced 945 % 224 % % Aggressive 1,809 % 337 % % Extreme 3,159 % 471 % %

13 12 RESULTS How would our Balanced investment strategy perform in a difficult market environment like 2018, where Bitcoin was down almost 50% until the 1st of September? Performance Max drawdown Sharpe ratio Return/max drawdown Bitcoin % % NA NA 80 Balanced 41.6 % % The strategy indicated above is a long-only strategy. We understand the need of a short 0 1/1/18 25/1/18 20/2/18 15/3/18 10/4/18 5/5/18 1/6/18 25/6/18 20/7/18 15/8/18 10/9/18 1/10/18 trading strategy and we are currently working BTC Balanced on that to boost returns. Check our live trading (paper trading) results at investment.automata.live

14 13 USER GROWTH Acquisition strategy Produce SEO-optimised high quality content Use multiple channels: Youtube, Facebook, Instagram, Twitter, LinkedIn, Medium, Telegram, Bitcointalk, Reddit Produce in-depth cryptocurrency market analysis Utilise our founding team for podcasts and interviews Develop existing data Use data from newsletter, whitelist and MVP registrations Form viable partnerships with blockchain-specific companies & industry leaders Offer affiliate links and further cost-effective incentives to gain access to a larger market share Retention strategy Community involvement Send out customised ing campaigns Give exclusive access to platform releases and partnership deals Produce high quality content: in-depth articles, video analyses and interactive demo apps Investment strategies Deliver positive returns to grow client s investments Provide constant adaption and improvement of our different strategies Presenting at leading blockchain/fintech events in Europe: Salon de l AT, Salon du Trading, Ethereum London, Blockchain.io roundtable

15 14 A STORY WRITTEN BY MANY HANDS 3,754 people on our social networks 2,167 Website visits 2,572 participations so far in the bounty program 158k Tweet Impressions in the last 28 days

16 15 THE ATO TOKEN Token distribution: 1 billion ATO tokens Price: 0.01 USD Hard cap: 10M USD Tokens available in token sale: 800M (80%). The rest (20%) will go to the bounty program, advisors, early investors The ATO token entitles you to the following: Revenue sharing Profit sharing 5% 20% of all the revenues we make from management fees are distributed to all token holders of the performance fees we collect from our users are distributed to all token holders

17 16 EQUITY INVESTMENT What we are looking for We are seeking 500,000 EUR - 1M EUR in early stage financing This round of financing should last between 12 and 15 months So far we have raised 200,000 EUR from angel investors Milestones to achieve with the funds 10,000 paying users Launch of Security Token Offering (STO) Partnerships with traditional asset managers and crypto service providers (i.e. crypto banks, crypto payment providers) Investment opportunity Investors will receive equity in the company and additionally token (50% bonus token) of Automata. This will give them immediate liquidity after the token sale. Example: A 100,000 EUR investment in Automata will not only give you equity but also 50,000 EUR worth of Automata s native token

18 17 AUTOMATA S MANAGEMENT TEAM Matthias Kurz CEO Gael Itier CTO Diego Mascio COO Sandra Nahon CMO Jean-Yves Guillou Head of Research 7+ years experience in Investment banks in Valuations & Risk Management CFA charterholder and CQF certificate holder Crypto proprietary trader since years experience as proprietary trader Winner of trading competition in France broadcasted by BFM Business Algorithmic trading developer Portfolio Manager and Asset Allocation expert Elaborated on robo-advisor models for HNW and mass market Co-founder of several startups Former CEO & Co-Founder of Biutag Digital marketing expert for mass markets Serial entrepreneur 10+ years in Equity and Forex research Elliot wave theory expert Author of crypto research models

19 18 AUTOMATA S ADVISORS Julian Kaljuvee Advisor Experienced advisor and seed investor Co-founder of different fintech startups Harvard alumnus Augustas Staras Advisor Digital marketing expert Partner at Fortum Partners advisory firm Experience in ICO structuring, token design and blockchain

20 19 AUTOMATA FINANCIALS FORECAST 2019 Y1 Y2 Y3 Y4 Y5 Cumulative number of customers REVENUES Revenues from regular customers 48, , ,640 2,000,320 4,256,000 Revenues from premium customers 31, , , , ,583 Revenues from performance fee 14, , ,348 1,711,900 3,597,508 Total Revenue 94, ,436 2,117,265 4,230,762 8,843,091 EXPENSES IT Developments 95, , , , ,000 Marketing / Client Acquisition / Expenses 33,492 98, , , ,309 Staff 520, , ,000 1,320,000 1,575,000 Other (Licences, Offices) 93,600 81, , , ,600 Subtotal expenses 742, ,944 1,489,127 2,103,676 2,910,909 NET PROFIT - 647, , ,139 2,127,086 5,932,182

21 20 PRELIMINARY ROADMAP 2016 Q Q Q Q Development of robo-advisor for traditional assets Implementation of asset allocation engine for predefined portfolios Optimisation of risk adjusted returns according to risk profiles Creation of crypto advisor Automata Formation of core team Development of backend engine Release of first version of the product Preparation for token sale Presentation of Whitepaper Building of community Development of smart contract Launch of Automata mobile app Release of Automata mobile app Start of investments using FIAT money or cryptocurrencies via Automata s wallet Introduction of Automata Prime Services Expansion of product range Integration of AI trading strategies Optimization through machine learning Improvement of returns by using algorithmic trading strategies Release of optimized desktop version Q Q Q Q Adaption of investment engine to cryptocurrencies Implementation of strategies for cryptocurrencies Improvement of algorithms that integrate high volatility and strong risk management Back test and stress test of investment engine for different cryptocurrencies Kick-off of marketing campaign Release of website Establishment of key strategic partnerships Development of marketing blueprint Development of MVP Release of platform s beta version Implementation of different risk profiles Start of bounty program Upgrade of Automata platform Integration of external signal providers Introduction of Core satellite approach Development of new inhouse investment strategies (ICOs, exchange arbitrage, market making)

22 21 WHAT S NEXT FOR US? Automata s Q3-Q4 set to be the biggest yet in the companies history Platform Launch Our platform will be beta-tested in October and launched for use by our clients in the proceeding weeks. Token Sale Our token sale will be implemented and capital will be raised to ensure we can continue to achieve our goals moving forward. Widespread Adoption We will remain active in the cryptocurrency sphere, partnering with leading industry figures to further our market reach on various social media platforms. We will broaden our audience in accordance with our bounty program plan in the proceeding few weeks. Please find more information in our whitepaper (

23 PARTNERS Kemp House City Road - EC1V 2NX London I I info@automata.live