Hello, George from TensorBox here.
Thanks for sharing your concerns here. I was going to post a new thread announcing our ITO so I welcome everyone to ask any questions there.
Firstly, 25% is, as you have pointed out, is an exceptional result. We're not expecting to show this kind of results each month of course and we're not promising this kind of results of course. What we promise is that our results will not be correlated with the market performance. So if prices fall - we profit, if prices rise - we profit, if markets stay calm - we probably don't trade much. As you can see on our main page, there was 18% spread between BTC exchange rate on 2 exchanges at some point in time. So anyone lucky enough could've made that 18% "risk-free" profit in just 1 trade. Did we make 18% on that trade? Nope, we've made much less, because that was not truly "risk-free", and I'll get back to that later. We've been testing our ideas for about 2 months and 2 big things happened during that time: the bitcoin fork and ban of ICOs and Chinese exchanges. We've made the bulk of our profits around these events (without any losing days btw!). Will something like that happen in future - we don't know. But basically, every market shock is good for us. And you know, there's saying that timid salesmen have skinny kids..So since we've had nice profit we've decided to mention that
Some token funds show much better performance, I think I've heard of a quite big fund that's up >400% for the year. Since crypto markets are red hot now, people who buy and hold may get exceptional returns. Or they may not. Let me stress that again, our goal is not to show an insane profit, our goal is to show a stable profit each month, regardless of market direction. If cryptocurrencies keep growing like they are now, we won't be able to beat token funds by performance. But that is not our goal. If something bad happens on the market, all coins will fall, they are all too correlated with each other. So for someone who holds cryptocurrencies or invests in a token fund, it will be a smart idea to hedge some of their capital with us.
As for the risk. Trading is risky. Trading cryptocurrencies is very risky. It is always possible to lose all of your money. Our strategies are not risk-free. We do remove market risk, however. But there are other forms of risk: exchanges may shut down or get hacked (we spread our capital across many exchanges and we only trade on the biggest/most liquid exchanges and give preference to exchanges that give some sort of guarantees, like Japanese exchanges); there may be technical issues with the exchanges and our orders are not executed (but we have systems to prevent that) or we may take enormous leveraged position and be forced to close it by a margin call, leaving some unhedged market exposure, but that is what's risk management for - we were never even close to a situation like that, even during the shockwaves coming from China.
tl;dr: 25% was an exceptional result due to big shocks on the market and is not indicative of future results. Trading is very risky and you can lose all your money. Our strategies are not completely risk-free, however, we do remove market risk. So whether markets move up or down - we profit. If they don't move -we don't trade much.