Pair trading remains one of the more underutilized strategies in crypto. Your exposure becomes the spread between two assets rather than the direction of the market. In one case study our analyst examined, adding the short leg took the Sharpe from 0.35 to 1.45. Max drawdown dropped from 64% to 45%. Volatility declined by over 20%. The pair sat at all time highs while the long leg alone was down 40% from its peak. Pair trading allows you to express a relative view without taking on full directional exposure. You can profit while both assets decline, as long as your outperformance thesis holds. The wider the gap between winners and losers in crypto, the more valuable this approach becomes.(Delphi Digital)