Prop firm Tensor Investment launches AI-powered digital asset futures trading product
“We are excited for the release of our first asset management product – the AI research team has also been experimenting with other strategy types such as AI stat arb, which we are likely to release in the future. We will continue to focus on technology and infrastructure development, and growing our talent base.”
Tensor Investment, a prominent Asia-based, AI-driven proprietary trading firm, has announced the launch of its first external product offering, PaladinAI, to institutions and investors.
According to the prop trading firm, this innovative digital asset-managed futures product is powered by AI and boasts industry-leading risk-adjusted returns.
PaladinAI offers market-neutral long-short “medium-frequency” strategy
Tensor Investment, an AI-driven proprietary trading firm based in Asia, has introduced PaladinAI, its pioneering external product offering. Designed for institutions and investors, PaladinAI is a digital asset managed futures product, uniquely leveraging pure AI strategies to achieve top-tier risk-adjusted returns in the industry.
PaladinAI offers a market-neutral long-short strategy, characterized as “medium-frequency,” focusing on trading digital asset futures with substantial liquidity and market capitalizations. The strategy’s cornerstone lies in exploiting short-term directional market inefficiencies, capturing directional trend alpha as well as mean reversion and reversals. This approach ensures an excellent risk-reward balance.
The technological foundation of PaladinAI is Tensor’s proprietary AI research platform, which employs 120 GPUs and over 100 proprietary deep learning models for signal generation. This technological edge, coupled with Tensor’s tick-level data streaming architecture and real-time deep reinforcement learning-based parameter optimization system, provides Tensor with a distinct real-time execution advantage.
Tensor claims a 10-month net return of over 116%, with a maximum drawdown of 15%
From January to October 2023, PaladinAI reported a 10-month net return of over 116%, with a maximum drawdown of 15% and a Sharpe ratio of 3.87. At its launch, the product has already secured nearly half of its Phase 1 quota of $55 million from internal sources and partners, according to the company.
“We are excited for the release of our first asset management product – the AI research team has also been experimenting with other strategy types such as AI stat arb, which we are likely to release in the future. We will continue to focus on technology and infrastructure development, and growing our talent base,” commented Tiger Li, Chief Operating Officer at Tensor.
Tensor’s foray into asset management, starting with PaladinAI, marks a significant shift in the firm’s operational focus, underscoring its commitment to technological advancement and talent growth. With the AI research team already exploring diverse strategy types, including AI statistical arbitrage (stat arb), Tensor is poised to expand its product offerings in the future.
PaladinAI’s launch not only showcases Tensor Investment’s innovative approach to digital asset management but also sets a new benchmark in the use of AI-driven strategies in the dynamic field of managed futures. The firm’s focus on continuous technology and infrastructure development, coupled with its commitment to expanding its talent pool, signifies a forward-thinking stance in navigating the complexities of the digital asset landscape.
