Understanding CTAs (Commodity Trading Advisors) can help you grasp one approach to crypto and traditional markets. These are essentially algorithm-driven funds that operate on mechanical rules rather than narrative-based thesis.

Here's how they typically function: CTAs trade across multiple asset classes—futures on rates, equities, forex, and crypto (often through proxy instruments). Their core mechanism is straightforward: they monitor price action and volatility metrics, then automatically scale their exposure up or down based on these quantitative signals. Rather than chasing stories or market sentiment, they stick to what the data shows, adjusting position sizes mechanically as market conditions shift. This rules-based approach has made CTAs a notable force in crypto trading alongside traditional derivatives markets.