Understanding Proof of Strategy
At Atlas, we don't just deploy any trading strategy. Every vault that goes live has been through our rigorous "Proof of Strategy" process. Here's how it works.
Phase 1: Strategy Generation
Our AI uses evolutionary algorithms inspired by natural selection. We start with thousands of potential strategy configurations, each with different:
- Entry and exit signals
- Position sizing rules
- Risk management parameters
- Asset selection criteria
These strategies "compete" against each other, with the best performers being selected for "breeding" — their successful traits are combined to create new generations of strategies.
Phase 2: Backtesting
Every candidate strategy is tested against years of historical market data. We look for:
- Consistency: Does the strategy perform across different time periods?
- Robustness: Does it work in bull markets, bear markets, and sideways markets?
- Transaction costs: Are the returns real after accounting for fees and slippage?
Phase 3: Curation
Less than 1% of generated strategies make it through our curation filters:
| Metric | Requirement |
|---|---|
| Sharpe Ratio | > 1.5 |
| Max Drawdown | < 20% |
| Win Rate | > 55% |
| Profit Factor | > 1.5 |
Phase 4: Deployment
Strategies that pass curation are deployed as on-chain vaults. From this point forward:
- All trades are executed transparently on the blockchain
- Performance is tracked in real-time
- Anyone can deposit or withdraw at any time
Why This Matters
Traditional finance asks you to trust fund managers based on their reputation. Proof of Strategy asks you to verify based on data. Every vault has a complete audit trail of its testing process and live performance.
This is the future of asset management: transparent, algorithmic, and accessible to everyone.