Master Portfolio

The Master Portfolio is the bedrock upon which Safeforge's investment strategy is built.

Composition

The composition and weightage of the master portfolio is not fixed. It evolves to adapt to market conditions and optimise performance continually.

Optimisation Strategy

At the core of the Master Portfolio is the Base Portfolio, operating on a Hierarchical Risk Parity (HRP) strategy. This strategy has been backtested with historical data and has showcased a robust performance, and outperforming $ETH.

When Forger-created portfolios outperformed the benchmark after six months, they are merged into the Master Portfolio, enhancing its composition and performance.

Conversely, underperforming user portfolios will be discarded, ensuring the Master Portfolio retains a high-performance and risk-reducing standard.

Dynamic Benchmarking Mechanism

In TradFi, benchmarks often remain static, providing a fixed target to outperform. However, Safeforge adopts a more fluid approach, employing dynamic benchmarking.

The benchmark in this ecosystem is not fixed; instead, it changes in response to the performance of the Base Portfolio within the Master Portfolio.

This the benchmark remains competitive, transparent, and a true reflection of market conditions, thus promoting a healthier competition and continual optimisation.