GM Strategy Summary

Core activity:

  • Trades $ETH inside the GMX ETH/GLP Liquidity Pool in Arbitrum.

The assets traded by GM++ are $ETH against the GMX ETH/GLP Pool.

There is no downside protection in the GM vault. Due to the riskier nature of these trades, not every epoch can be a winner. The algorithm is designed to return up to 2.5x of locked funds in that time frame while risk up to 1x. These returns are fast and tailored to a crypto-native crowd.

To Simplify:

Total P&L = Win % * avg Win — (1-win%) * avg Loss

GM upside is fixed at 2.5x factor; hence the strategy will be in profit just ⅓ of the time (estimated).

33% X 2.5x — 80%X 1 > 0

The strategy can be terminated early when trading signals contradict each other and thus no clear position can be recommended by the model. Thus the above example simplifies expected trading activity, but conveys the key principles.

The GM strategy is designed for short timeframes and is our highest-risk vault.

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