The strategy adjusts monthly to market conditions using an advanced risk indicator based on the Ulcer Index, which considers not only the volatility of the asset under consideration, but also the magnitude and duration of drawdowns, thus incorporating elements of behavioural finance.

Furthermore, unlike the more common Standard Deviation, the Ulcer Index takes into account the progression of returns, lending itself better to be applied within a Trend Following strategy.

By rebalancing on a monthly basis, the Diaman Bitcoin & Gold Index, in fact, increases the exposure of the riskiest asset, Bitcoin, during positive market phases, while reducing it during the so-called 'crypto winters'.

In this way, the index offers a better sharpe ratio and expected return than a 100% gold allocation, but with a reduced increase in volatility, creating a combination that fits well with most diversified investment portfolios. 

​

In summary, the index allows:

• reducing risk during market corrections 

• taking advantage of Bitcoin's positive trends 

• protecting purchasing power in inflationary environments