The current beneath the surface.
Undertow Research runs fully automated, algorithmic trading strategies on Hyperliquid. Systematic execution, backtested models and hard risk limits.
- Annualised*
- >100%
- Sharpe ratio*
- 4.3
- Max drawdown*
- −17%
- Corr. to BTC*
- 0.21
- 10 Oct 2025 crash day*
- +8.4%
* Prime Strategy, backtest on historical Hyperliquid and Binance data
undertow
A current below the surface that moves independently of the waves above it.
The strategy is built the same way: designed to work independently of market conditions, in bull, sideways and bear markets, and through crash events. Markets make most of their noise at the surface. Our algorithms process real-time market data and execute trades accordingly.
A systematic approach to Hyperliquid
We publish how we work, not what the model does. The logic stays private. The principles below do not.
Continuous market monitoring
The algorithms monitor real-time Hyperliquid market data, tracking funding rates, order-book depth and other key market signals. Trades are executed automatically when predefined conditions are met.
Systematic, not discretionary
All trading decisions are generated by quantitative models. Entries, exits and position sizing follow explicit rules, eliminating discretionary decision-making from the execution process.
Extensively backtested
Our models are evaluated against years of historical market data from Hyperliquid and Binance, covering bull markets, bear markets, sideways conditions and major market dislocations. This allows strategies to be assessed across a broad range of market environments before deployment.
Volatility-hedged risk management
The models adjust hedges and position sizes in response to market volatility, while enforcing predefined risk limits across individual positions and the overall portfolio. Exposure is measured on a USD-adjusted basis.
Prime Strategy
Our first strategy. Every figure in this section belongs to the Prime Strategy alone; further strategies will be listed separately with their own figures.
The metrics shown are derived from historical backtesting and simulations using data from Hyperliquid and Binance. Where Hyperliquid's historical data is limited, Binance data is used to extend the testing period and assess strategy behaviour across a wider range of market conditions. These metrics do not represent live trading results. Actual performance will be reported as a live track record is established.
- Annualised performance
- >100%
- Sharpe ratio
- 4.3
- Max drawdown
- −17%
- Correlation to BTC
- 0.21
- 10 Oct 2025 crash day
- +8.4%
- On 10 October 2025, a market-wide crash triggered Hyperliquid's auto-deleveraging (ADL), which reduced or closed positions across the exchange. The strategy's backtest gained 8.4% that day.
Backtest on historical Hyperliquid and Binance data. Figures include trading fees and funding and exclude the performance fee. Simulated results have known limits: they assume fills that real markets may not give. Past and simulated performance do not guarantee future results.
How participation works
Participation runs through our own app at app.undertowresearch.tech. It moves your USDC step by step and shows you where it sits at every point.
Invitation
We add your wallet address to the list of wallets that can deposit.
Connect
Open the app and connect a wallet such as Rabby or MetaMask.
Deposit
The app moves your USDC to HyperEVM and into the vault, one confirmed step at a time.
Withdraw
Withdraw at any time through the same app, in the reverse order. There is no lock-up and no cooldown.
Fees
10% of your net profit, taken only when you withdraw. No management fee, and no fee to deposit or withdraw.
Records
The app gives you a statement of your deposits, withdrawals, gains and fees for any tax year, plus a CSV export.
Questions
Who is behind Undertow Research?
A small independent quantitative operation. We keep the people and the logic private and put the rules, the risks and the numbers in public.
Why invitation only?
We are starting with a small group of people we know. It keeps the operation manageable while the live record builds.
Where is my money held?
In a vault contract on HyperEVM, controlled by a multisig. Trading happens on Hyperliquid.
Can I withdraw at any time?
Yes. There is no lock-up period and no cooldown. Withdrawals run through the app, and network and bridge transactions take as long as those chains need.
What does it cost?
10% of your net profit, taken only when you withdraw. If you withdraw at a loss, you pay nothing. There is no management fee and no fee to deposit or withdraw. Network and bridge costs are paid by the wallet that sends the transaction.
Are the numbers real?
The current figures are from a backtest and are labelled as such. Live figures are shown separately once they exist.
Is the contract audited?
Not yet. The contract has not been independently audited. Please treat this as a real risk when you decide how much to deposit.
Will there be a native Hyperliquid vault?
Possibly, once there is enough demand. Until then, the app is the only way to participate.
Risks
Read this before you deposit.
- You can lose part or all of what you deposit.
- Backtests are simulations. Live results can be worse.
- The vault contract has not been independently audited. Bugs in smart contracts can lead to loss of funds.
- Funds depend on a multisig, on HyperEVM, on Hyperliquid and on bridges between chains. A failure in any of them can affect your deposit.
- Automated strategies can fail in market conditions their rules did not anticipate.
- Nothing on this site is investment, legal or tax advice, and nothing here is an offer to the public.