Revolutionary ETF Seeding & Arbitrage Strategy

Capturing daily price differentials in the global metals market through systematic, low-risk arbitrage operations

How It Works

Our strategy capitalizes on predictable intraday price movements in metals markets by purchasing physical metals at daily lows and transferring them to ETF partners at closing prices, capturing the spread as profit.

This market-neutral approach eliminates overnight exposure while generating consistent returns through high-frequency, low-risk transactions across seven strategic metals.

Strategy Metrics

Win Rate78.4%
Avg Daily Profit2.31%
Sharpe Ratio3.47
Max Drawdown4.2%

The Four-Step Arbitrage Process

Systematic execution delivering consistent daily profits

Step 1

Morning Purchase

Buy physical metals at daily low prices during optimal trading windows (9:30-11:00 AM) using proprietary price prediction algorithms

Step 2

ETF Seeding

Transfer metals to ETF partners via in-kind creation agreements, building AUM for partner ETFs while positioning for arbitrage

Step 3

Closing Sale

Receive ETF shares at closing price (4:00 PM), capturing the spread between daily low and closing price as arbitrage profit

Step 4

Secondary Market

Liquidate ETF shares in secondary market to realize cash profits and repeat the cycle with fresh capital

Seven Strategic Metals

Diversified exposure across critical industrial and precious metals

Aluminium

Win Rate77.1%
Avg Daily Profit1.89%

Cobalt

Win Rate82.3%
Avg Daily Profit3.12%

Copper

Win Rate79.8%
Avg Daily Profit2.45%

Lead

Win Rate75.6%
Avg Daily Profit1.67%

Nickel

Win Rate80.2%
Avg Daily Profit2.78%

Tin

Win Rate76.9%
Avg Daily Profit2.01%

Zinc

Win Rate77.5%
Avg Daily Profit1.95%

Comprehensive Risk Management

Position Limits

Maximum 10% allocation per metal per day with dynamic hedging based on metal correlations

Stop-Loss Protocols

Automatic stop-loss at 1.5% daily loss with real-time monitoring and immediate execution

Counterparty Risk

Prime brokerage relationships with GFI Group and TP-ICAP, segregated custody at US Bank and fund administration through Formidium.

Operational Risk

99.99% uptime with redundant systems, disaster recovery protocols, and 24/7 monitoring. SOC 1 & SOC 2 based TSC

Ready to Learn More?

Discover how our innovative strategy can enhance your portfolio