Kronos Capital — Market Update & Exciting Innovations from Kronos Bots

Dear Investors,

As the year draws to a close, we want to share important updates on our performance, the evolving market dynamics, and the exciting advancements we’re bringing to our trading systems.

Performance Update: Navigating December’s Challenges

Mid-December brought one of our steepest drawdowns to date, with accounts experiencing losses ranging from 10% to 20%, depending on specific conditions.

The primary challenge stemmed from low liquidity during liquidation events on certain exchanges, which triggered stop-loss orders and caused significant slippage. This magnified losses for some accounts. Meanwhile, other accounts avoided the stop-loss, stayed in the trade, and recovered much of the drawdown, closing at approximately -6% to -10%.

To address this, we’ve implemented a new stop-loss system that incorporates a timeout feature. This ensures that SL orders are not triggered prematurely by a wick or rapid liquidation event, giving trades more room to recover and reducing unnecessary losses, even in a low liquidity environment.

November, however, was a standout month for us, delivering a stellar return of +21.7%. This demonstrates the strength of our systems in capturing opportunities in favorable market conditions.

Evolving Market Dynamics: Lessons from December 18th

A key market shift occurred on December 18th when liquidity from altcoins was redirected into Bitcoin, rather than into USDT (stablecoins). This reflects a renewed confidence in Bitcoin’s stability moving forward, and it’s a significant change in market behavior that we’re carefully analyzing.

As you know, our strategy has long focused on altcoins because their volatility presents the greatest opportunities for our trading bots. Moving forward, we’ll remain vigilant to these market dynamics while leveraging our expertise in altcoin trading.

Introducing the Latest Kronos Bots Innovations

We’re thrilled to announce enhancements to our trading systems, designed to improve both profitability and risk management:

Kronos High-Frequency Bots

• Doubling Trade Volume: We’ve successfully increased the number of trades by 2x, providing more opportunities to exit positions profitably while increasing the odds of having free capital in case of market downturns.
• Improved Performance Metrics: Gains have increased by 1.3x, while drawdowns have been reduced by 1.4x. These improvements significantly enhance overall account performance and resilience.

Refining Altcoin Filters

To further optimize our strategy, we’ve refined the criteria for trading altcoins. Moving forward, we’ll trade only altcoins that meet these stricter thresholds:

• Daily Volume/Market Cap Ratio: > 0.3
• Minimum Daily Open Interest: $200M (up from $100M)
• Minimum Market Cap (Last 30 Days): $1.5B (up from $750M, ensuring the market cap remains relatively stable over this period to avoid coins with excessive fluctuations)

These enhancements aim to minimize exposure to low-liquidity assets, ensuring faster recovery during market downturns while maintaining our edge in volatile markets.

What’s Next? Enhancing Short Bots for Market Hedging

We’re also focused on enhancing our short bots, traditionally launched only during confirmed bear markets (e.g., Feb 2022 — Jan 2023). Moving forward, we’re working to:

• Develop short bots designed to hedge accounts during periods of peak euphoria in bull runs. These bots will capitalize on profit-taking and liquidation events, which typically introduce downside volatility.

Our goal is to provide a more comprehensive risk-management framework while continuing to deliver superior performance. We’ll keep you updated as these developments progress.

Thank You for Your Loyalty

We want to take this opportunity to thank you for your continued trust and partnership. Despite the challenges of recent months, we remain confident in our ability to grow your equity, outperform benchmarks, and minimize drawdowns.

Here’s to a prosperous year ahead as we navigate the markets together and deliver on our shared goals.

Sincerely,
Alexandre A. — CEO & Founder of Kronos Capital