Yggdrasill

This strategy implements a Quantitative Grid Trading system for WTI crude oil, enhanced by a near-market-neutral systematic approach and macroeconomic analysis for informed positioning. It is designed to perform across a wide range of market conditions by combining statistically derived price zones with disciplined and systematic risk management.

At its core, the system employs a one-directional Buy-Only Grid designed to capture price oscillations within statistically defined price zones. Unlike conventional grid trading strategies, the system actively manages entries and exits to control risk while utilizing market volatility as an opportunity to generate returns. This approach is designed to perform in both sideways markets and trending markets, rather than relying solely on mean-reverting conditions.

A key feature of the strategy is its Adaptive Position Sizing, which is based on the 15-year historical standard deviation of WTI crude oil prices. Grid spacing and position size are dynamically adjusted according to long-term volatility characteristics, allowing the system to adapt its risk exposure to prevailing market conditions.

When the market enters the 2-standard-deviation (2SD) zone, where the risk of holding positions at unfavorable price levels becomes significantly higher, the system applies wider grid spacing to reduce excessive exposure and improve risk control. Conversely, when the market is within the 1-standard-deviation (1SD) zone, the system utilizes tighter grid spacing to increase trading frequency and improve the efficiency of capturing short-term price fluctuations.

In addition, the strategy incorporates Macroeconomic Analysis to refine position sizing and overall portfolio positioning. Key factors—including global oil demand, inventory trends, interest-rate conditions, and geopolitical developments—are evaluated to identify the market's structural bias and optimize the deployment of the grid accordingly.

The strategy emphasizes:

* Risk-adjusted return stability through strategically defined price zones designed to capture opportunities across different levels of market volatility.

* Systematic execution that minimizes emotional bias and discretionary decision-making.

* Resilience across market cycles, with the ability to operate in both trending and ranging market environments.

* Disciplined risk management, with position sizing and grid spacing dynamically adjusted according to market volatility and price zones.