Long Winners & Short Losers in Altszn? Or the opposite?
This is just a general idea of determining which altcoins provide the best exposure to a rise (or fall) or the broader crypto market. These are all of the currencies offered on the Rollbit platform and also traditionally have the most trading volume as altcoins. This chart specifically looks at the % Change in price of each crypto YTD.
An interesting observation is just the broad outperformance that BTC has had essentially the entire year over every asset besides SOL & FTM. However, SOL and FTM were coming off drawdowns of 90-95% while BTC was only down 75%.
This outperformance begs the question of whether it is better to short BTC and long alts in hopes of a mean reversion, or continue to long ETH and short alts in hopes of continuation.
I am personally bearish and think the idea of an altseason is impossible without a new influx of retail capital or a zero-bound rate environment. Thus, I would like as much exposure to the broader crypto market so that I can effectively gain as much short as possible.
My thesis is that I should enter short positions of 5% of total portfolio each in SOL, FTM, BTC, ETH, ADA, MATIC, DOT, XRP, LTC, & LINK.
This would bring my exposure to -50% and then just sit in cash with the remainder.
Use 5x leverage for SOL, FTM,ADA, MATIC, DOT, XRP, LTC, & LINK.
Use 10x leverage for BTC & ETH.
Stop loss = liquidation. sleep like a baby as I get liquidated for the xxxx time.
An interesting observation is just the broad outperformance that BTC has had essentially the entire year over every asset besides SOL & FTM. However, SOL and FTM were coming off drawdowns of 90-95% while BTC was only down 75%.
This outperformance begs the question of whether it is better to short BTC and long alts in hopes of a mean reversion, or continue to long ETH and short alts in hopes of continuation.
I am personally bearish and think the idea of an altseason is impossible without a new influx of retail capital or a zero-bound rate environment. Thus, I would like as much exposure to the broader crypto market so that I can effectively gain as much short as possible.
My thesis is that I should enter short positions of 5% of total portfolio each in SOL, FTM, BTC, ETH, ADA, MATIC, DOT, XRP, LTC, & LINK.
This would bring my exposure to -50% and then just sit in cash with the remainder.
Use 5x leverage for SOL, FTM,ADA, MATIC, DOT, XRP, LTC, & LINK.
Use 10x leverage for BTC & ETH.
Stop loss = liquidation. sleep like a baby as I get liquidated for the xxxx time.