# Portfolio Architecture

Our strength lies not in a single algorithm, but in a complex, multi-layered system of capital allocation and risk management.

### Hierarchical Portfolio Construction

We employ a **three-tier capital allocation model**:

* **Tier 1:** Allocation of capital among individual trading algorithms.
* **Tier 2:** Allocation among pools of strategies based on the same mathematical model.
* **Tier 3:** Allocation among different tradable instruments (e.g., BTC futures, ETH futures).

Capital is dynamically reallocated towards more efficient strategies, with rebalancing frequency ranging from weekly to quarterly.

### The Power of Ensembling

Our final trading portfolio is an **"ensemble" of over 1000 individual, weak yet practically uncorrelated (≈1%) algorithms**. This diversification allows for a high overall Sharpe ratio (risk-adjusted return) even if each individual algorithm yields a modest result. This approach is analogous to **ensemble learning** methods in machine learning.

Capital is automatically redistributed in favor of strategies showing better performance, with a frequency ranging from one week to three months.
