At its simplest, we aim to optimise your portfolio by maximising the Sharpe Ratio of your portfolio. The Sharpe ratio compares the return of an investment to its risk.
What does it do?
Arkmon serves as a tool to help streamline and optimise your investments based on your chosen index configuration. When optimising your portfolio, Arkmon starts by evaluating this configuration, determining the ideal percentage allocation for each cryptocurrency. For instance, it decides how much of your portfolio should be in Bitcoin, Ethereum, or any other selected currency.
Once this target allocation is set, the system delves into your current portfolio. It figures out the differences between your current holdings and the desired target. After identifying these gaps, it calculates the trades needed to bridge them, ensuring your portfolio mirrors the ideal allocation from your index configuration. One of the system's standout features is its ability to factor in trading fee costs. By doing so, Arkmon ensures that it only recommends trades that, when executed, lead to an overall improvement in your position. Ultimately, the aim is to ensure your portfolio closely aligns with the diversified structure determined by your configuration, maximizing the potential benefits of a well-diversified investment.