How Neuronomics developed a trading strategy with computational neuroscience

THE CHALLENGE

Use neuroscience to exploit inefficiencies in the financial markets

Neuronomics uses computational neuroscience to develop an algorithm that lets them exploit inefficiencies in the financial markets.

They applied it to the crypto-market which is driven by psychological factors and neurological processes and remains inefficient.

"It's not easy to create a product that will allow you to have exposure, not just to the one or two leading cryptocurrencies, but to more than 30 cryptocurrencies that we trade."

THE OPPORTUNITY

Securitize an AMC where 30+ cryptocurrencies are traded

The traditional custody setup only works for the biggest cryptocurrencies, but Neuronomics had exposure to more than 30 crypto-assets.

They securitized an actively managed portfolio, where these cryptocurrencies are traded according to their algorithm based on computational neuroscience and quantitative finance.

"Our models aren’t created from market data but computational neuroscience. And this allows us to detect market patterns that we believe will remain as long as humans are still a factor in the market."

THE RESULT

Allow investors to have direct exposure to their strategy without taking on any counterparty risk

GENTWO Digital's Actively Managed Certificate (AMC) helped Neuronomics make a managed crypto strategy fully bankable and accessible through a Swiss ISIN.

This allowed qualified investors to access an interesting instrument for diversification that is so far decorrelated from any of the traditional markets.

"We take this domain-specific knowledge of neuroscience, and we transfer it into quantitative finance, which is something absolutely unique."