Capital management terms

Tark Asset Management is a company that manages capital in crypto assets algorithmically and is part of Tark Holding. Trades are made by an algorithm according to predefined rules, and the client’s capital stays in the client’s own exchange account at all times.

Algorithmic trading, or algo trading, is trading in which a program decides on entering a position, its size and the exit according to rules set in advance. The decision does not depend on the mood of the moment: a rule is either met or it is not.

Each Tark algorithm has its own rules and its own risk control: the loss on a position is limited by a stop-loss, the position size is capped, and risk is reduced when the account is in drawdown. The strategy’s rules are described in detail on the monitoring page.

Tark suits those who invest with a horizon of six months or more, ideally a year, and are comfortable with fluctuations in capital for the sake of a higher expected return. The strategies do not promise daily income: the result builds up over time.

The strategies trade in the direction of strong market moves, and such moves happen unevenly. So returns come unevenly, and losing months are part of the approach: the loss on each trade is capped in advance, and profit comes from larger moves. The result is best judged over several months; every day is open on the monitoring page.

Algorithmic strategies on crypto assets: at their core are momentum and trend following, with a smaller share of mean reversion. How they work is shown on the “Approach” page, and the daily results of the main strategy are open on the monitoring page. The second strategy, Tark Balance, is being prepared for publication.

In your own account on one of the largest crypto exchanges. Capital is not transferred to us: the algorithm connects to the account with an API key that has trading rights but no withdrawal rights. Only you can withdraw money. This setup is called an SMA, a separately managed account. You can see the balance and trades in your exchange account at any time. A key without withdrawal rights does not protect against trading losses or against the risk of the exchange itself.

Trading only. You create the key yourself in your exchange account settings and select the permissions when you create it: trading enabled, withdrawals disabled. So the algorithm can open and close positions but cannot transfer money out of the account.

You can delete the key at any time; after that, the algorithm no longer makes trades.

Structurally, it is a separately managed account (SMA). In a typical trust management arrangement, money is transferred to the manager. With Tark, capital is not transferred: it stays in your exchange account, and the manager only gets the right to trade on it with an API key.

In copy trading, a chosen trader’s trades are replicated in subscribers’ accounts through an exchange service. A trading bot is usually chosen and configured by the client, who also monitors how it works.

With Tark, the algorithm is run by the manager: the rules, risk control and the connection to the account are on our side, and the strategy’s daily results are published on the monitoring page together with drawdowns. Your capital stays in your account throughout.

$10,000. This amount stays in your exchange account; it is not transferred to us.

The fee has two parts. One-time onboarding fee: 2% of the connected capital. Performance fee: 20-30% of profit above the account’s previous peak (high-water mark), so you do not pay for the recovery after a drawdown. If you withdraw money from the account, including to pay the fee, the high-water mark is lowered by the amount withdrawn.

Through your exchange account: only you can withdraw; the algorithm has no such right. Funds tied up in open positions are released after those positions are closed. If you need to withdraw all your capital, message us: we will close the positions and disconnect from the account.

You can see the balance, open positions and every trade in your exchange account at any time: the account is yours, and the exchange keeps a full transaction history for it. The strategy’s daily returns are published on the monitoring page and can be downloaded as CSV.

On the largest crypto exchanges that provide account access via API. We will discuss which exchange is more convenient for your account during onboarding.

Yes. The algorithms trade perpetual futures with leverage, so capital fluctuates more than when buying an asset without leverage. The size of each position is calculated from a risk set in advance, and every position has a stop-loss.

The strategy is volatile: the maximum drawdown over the whole period is -32.5%, the average -4.0%. All drawdowns by day are visible on the “Drawdown from peak” chart on the monitoring page, so it is clear in advance what swings to expect.

Everything is calculated from the algorithm’s daily return series. Daily results are compounded, so the total shows what the capital would have become without deposits or withdrawals. Drawdown is the fall in capital from the previous peak to the trough. CAGR is the annualized return: the steady annual rate that would produce the same total. The Sharpe ratio shows return per unit of volatility; the Calmar ratio is CAGR divided by the worst drawdown.

Yes, at any time. The simplest way is to message us: we will close the positions and disconnect from the account. You can also do it yourself: the account belongs to you, and if you delete the API key in the exchange settings, the algorithm will no longer be able to make trades. Positions open at that moment will remain in the account, and you will decide what to do with them.

The strategies are volatile: there are drawdowns and losing periods, and that is part of the approach. The loss on each trade is capped in advance, every day of results is open on the monitoring page, and the capital always stays in your own account.