We are Sixtant, a market neutral high-frequency prop shop and market maker founded in late 2017 to develop algorithmic trading strategies in the crypto space. We have traded over 5B USD to date in 2021, and since we ramped up our volume a month ago, we are trading over 100M of volume per day.
We are currently connected to most major exchanges, operating 24/7, with a ~98% uptime and doing tens of thousands of trades per day. Most of our volume is currently happening on Binance, FTX, dydx and Bitso.
Our co-founders, Matt and Josu met in the Mexico City Crypto Book Club where we would read and discuss whitepapers back in 2016. Josu ran into bitcoin early on, and has been trading it since 2013. Matt has been programming since he was in 5th grade, and he wrote his first crypto HFT system in 2015. Josu is quite active on Twitter on @josusanmartin.
**Quick overview **
- Arbitrage and market neutral strategies.
- Focused on CLOBs.
- ~10M in AUM.
- +6% average monthly returns from prop trading.
- ~100M average daily traded volume in August.
- Small team of 7.
- ~90% of our trades are profitable.
- Largest daily drawdown in 4 years of operation smaller than 1% of our AUM.
- Number 1 market maker on dydx by Liquidity Rewards.
dydx Liquidity Provider
We have been working with the dydx team, providing liquidity one their L2 perpetual markets since they launched in April 2021. We finished Epoch 0 as the first Market Makers by Liquidity Rewards, in front of Wintermute or Amber Group. We captured ~1.4B (~15% of the total) of maker volume on Epoch 0, and we are currently standing at ~17% on Epoch 1.
dydx Approved Borrower
An initial loan of 500,000 USD.
Usage of the funds
The dydx loan will allow us to 2x our trading capital. However we won’t be able to withdraw the funds from dydx, and since our main market making strategy in that venue is fully hedged, we also require capital for the cover exchange. This is where the TrueFi loan comes in.
Since our positions are always hedged, we are not exposed to market risk. When it comes to leverage we usually stay below 2x, and never go over 3x on any exchange.
Almost all our capital is deposited in exchanges, so we are exposed to counterparty risk. That’s why we chose our trading venues carefully and never deposit our own capital in exchanges that don’t have a proven track record.
dydx is currently our only big project in DeFi, and we are not currently using any of our funds for yield farming.