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Our strategy, explained
Our approach
A different approach to traditional investing
Yieldfund is a quantitative trading company active in the crypto market. Our automated trading system is specifically designed for volatile markets: it capitalises on short-term price differences — in both rising and falling markets.
The system deliberately operates within strict limits: a maximum of eight positions at a time and an average of five to twenty closed trades per day — each executed automatically based on live market data.
How the system trades
Execution is fully automated, based on live market data. Illustration only — not actual price data.
The 3-step principle
Data-driven trading
All decisions in the standard trading process are fully automated. The algorithm continuously processes live market data and translates it into predefined trading actions — both long and short.
First Time Right
The goal for each trade: to close within a maximum of four hours at a predefined profit target of 0.5% — with 10x leverage (around 5% trading profit on the position). Approximately 90% of trades close according to this principle.
Trade recovery
If a trade does not reach its target in time, we classify it as “invalid”. We actively manage these positions with the aim of closing them in a controlled manner without a loss, by spreading entry points and reducing leverage. We avoid liquidation wherever possible, although it may be necessary in exceptional circumstances.
The system’s trading results are not the same as the interest you receive as an investor — your interest rate is set out in your bond terms and conditions. Past performance is no guarantee of future results.
From signal to trade
How the system works, in five steps
The algorithm monitors the market around the clock using four coded indicators, along with price action, volume and timing. Only when everything aligns is a signal generated — and from there, the rest happens automatically.
Each step follows predefined rules, without emotion. The process shown alongside runs automatically, from signal to completed trade.
The algorithm continuously monitors the market using four coded indicators, along with price action, volume and timing.
When all indicators align, a trading signal is generated automatically.
The signal is sent directly to the exchange, where the buy or sell order is executed automatically.
Strict stop-losses and position sizing that adjusts to market conditions.
The profit target is set at 0.5% by default. Once this target is reached, the position closes automatically.
What signals look like in the market
Illustration of one trading day — not actual price data or signals.
The people behind the strategy
Built and monitored by people
The strategy runs automatically, but is built and monitored by people. Our in-house team develops the trading software together with an external development partner and continuously refines the trading rules based on real-world data.
If the system detects anything unusual, a person always reviews it before any adjustments are made — ensuring the technology serves the strategy, not the other way around.
Prepared for exceptional circumstances
Selective trading pairs
We trade exclusively in a fixed selection of around ten established cryptocurrencies with high market capitalisation and sufficient liquidity. This allows us to make controlled adjustments when a trade needs to recover.
Trading safety fund
In addition to the system, Yieldfund maintains a separate buffer in readily available digital dollars (USDC), intended to support trade recovery. The buffer reduces risk, but does not eliminate it.
Diversification across exchanges
We spread our activities and funds across several leading exchanges on three continents. Target: full implementation by 2027.
Honest about the strategy
This strategy also involves risks.
That’s why we’re upfront about them — and what we do to mitigate them.
Market stagnation
The algorithm capitalises on market movement. When there is less movement, fewer trades are executed and trading profits are lower. That’s why we continue to develop the algorithm for a range of market conditions.
Technical failures
Software, API or exchange outages can disrupt trades or result in missed opportunities. We have robust incident management procedures in place and continuously monitor our systems.
Extreme events
Rare, sudden market shocks (“black swans”) can put pressure on trading profits through liquidations of long and short positions. Our fixed coin selection and the Trading safety fund help mitigate the impact.
Loss of capital
External factors — such as an exchange going bankrupt or being hacked, or geopolitical measures — could result in a partial or total loss of capital. That’s why we spread our funds across multiple exchanges and continents.
Questions about our strategy?
In a 30-minute call, we’ll take you through the strategy, the risks and the terms and conditions. You ask the questions and then decide at your own pace. Our doors are also always open — in Deventer and Amsterdam.
Investing involves risks. You may lose some or all of your investment.