2. Fundamental trading
Trade fundamentals against each other (TVL vs FDV, on-chain metrics vs price) as a relative-value position.
Fundamental traders bet on value: which asset is cheap relative to what it does. On Orchard you can express that as a relative bet (long the asset whose fundamentals are under-appreciated, short the one that's overextended) so you're not exposed to the whole market moving against your thesis.
Classic setups
- TVL vs FDV: a chain's usage (total value locked) vs its market valuation. Long the undervalued side of the pair.
- Narrative vs usage: an asset with real activity versus one trading on hype alone.
- Sector rotation: long the category that's cheap on fundamentals, short the one that ran ahead of its numbers.
The pair does the work
Because a pair is a single position on the ratio, your PnL comes from the two assets re-rating relative to each other, not from whether crypto goes up or down while you hold.
How to trade it on Orchard
- Pick the two assets in the token picker (crypto, or cross-asset perps: equities vs crypto, equities vs equities).
- Review the ratio chart and the Agent Stats panel: correlation and cointegration tell you if the relationship is stable enough to trade.
- Size the position with your view (dollar-neutral 50/50, or a custom split like 60/40) and set TP/SL on the ratio itself.
Dollar-neutral is not automatically market-neutral: equal dollar exposure only removes market risk when the two assets move ~1:1. Check the hedge ratio in Agent Stats before assuming the pair is direction-free.
Related: Baskets · Agent Pear Statistics · Asset classes