Investing in cryptocurrency can feel like a full-time job, especially when emotions get in the way of sticking to a strategy. Unlike traditional stock markets, which operate within set hours, the crypto market demands consistent attention since it runs 24/7.
To navigate this nonstop environment, many traders turn to automation. Yieldfund, a quantitative trading company based in the Netherlands, offers a seamless, hands-off solution that eliminates the emotional pitfalls of human trading while maximizing performance. By leveraging algorithm-driven strategies, Yieldfund’s approach to “Set and Forget” trading yields investors up to 60% yearly returns.
Rick Simons, CEO of Yieldfund, believes there’s a smarter way to manage the volatility and emotional challenges of crypto day trading. In this interview, Rick discusses how quantitative trading models can consistently outperform traditional day trading for both retail and regular crypto investors.
Many traders still believe you need to be hands-on to profit in crypto. Why do you argue that a disciplined “set and forget” quantitative approach outperforms active day trading?
A professional active day trader can generate very high returns as long as they are actively trading; however, on days when they are less active, this can affect their performance. With a quantitative trading approach, trading takes place 24/7, which is free from human limitation and time constraints, and helps ensure consistency while removing the risk of their performance being tied to active time spent trading.
What is the single biggest advantage of model-driven, passive execution over high-frequency human trading in today’s markets?
Quantitative trading is free from personal emotion and operates 24/7. The process is standardized for the assets being traded, and the algorithm responds to different market conditions. In essence, the focus behind the scenes is solely on process optimization. The hype of the day in the market or around individual assets is therefore less relevant.
What behavioural risks does “set and forget” eliminate, and what new risks (if any) does it introduce?
Set and forget primarily eliminates the personal emotions of a trader. The system makes 100% of the purchase decisions. In our case, 80% of the sales orders are automatically closed at the preset level of 5%. The most challenging market for algorithmic trading is one that hardly moves within the chosen settings; a day trader can more easily work around this by shifting their trading focus to other assets.
What some often miss is that “Set and forget” doesn’t imply continuous monitoring of open positions. While approximately 80% of the process is automated, there still needs to be ongoing oversight.
What single metric should traders check first when comparing quant products to their own day-trading performance?
One important metric traders should look at is the average net return over at least 12 months. Day trading performance can be misleading, as it often involves short bursts that don’t reflect a longer-term trend. However, consistent performance over a full year gives a complete picture of whether a quant trading strategy can perform through different market conditions. So a one-year track record gives a much more realistic picture.
For investors worried about liquidity or needing their capital back early, how does a fixed-term, set-and-forget product like Yieldfund address those concerns?
At Yieldfund, investors aren’t locked in permanently in their contract. Even with a fixed-term contract, they always have the option to exit early if they need access to their capital. This flexibility ensures that while the strategy is designed to be hands-off and long-term, investors still retain control and peace of mind knowing their funds aren’t out of reach.
What behavioural mistakes common to day traders does your approach eliminate?
People are naturally irrational, and one of the biggest pitfalls for day traders is allowing emotions to drive their decisions. Out of fear or greed, they often make choices that put their profitability in a difficult spot. Our quantitative trading algorithm removes human bias from trading, making the process less emotion-driven and fully data-driven.
If a retail investor asks “how hands-off is hands-off?”, what single demonstration or metric would you show them to build confidence?
At Yieldfund, investors make a single contribution and start earning fixed weekly payouts, fully independent of how the market is performing or trading results. What makes it truly hands-off is that investors don’t have to manage or adjust anything themselves, nor do they need to make any decisions. Yieldfund handles everything, though investors can always choose to expand their initial investments at any time they see fit.
How do you see the future of trading with a quantitative trading model, and why could or couldn’t this be the future of trading?
Technological developments have made quantitative trading not only possible but also extremely lucrative. Yieldfund expect data-driven trading models to play a larger role in the future of trading, both for institutions and for regular retail traders. On the other hand, quantitative models thrive on volatility, and they are essential to help companies like Yieldfund achieve the higher return. A decline in crypto volatility could pose a threat to our trading models.