Let's take a look at some of the tools on the @OnrampAcademy site. 1.) Portfolio Modeling. Want to understand the impact of between 0% and 10% allocation to Bitcoin compared to a traditional 60/40 portfolio?
2/ But wait, I thought you said Bitcoin was risky? How is it that the portfolio with 5% BTC delivers nearly the same amount of risk (11.8% vs 12.5%) but with an annual return significantly higher than a direct S&P investment. Note the chart in the upper right.
3/ But that was a simple model where we simply rebalanced monthly. Let's spice things up a bit. Let's add a rebalance threshold and throw $BTC AND $ETH into the mix.
4/ Note the improved risk-return characteristics once again. Note the impact of the ridiculous bear market both Bitcoin and ETH have seen in the past two months and how they impacted the portfolio. What about max drawdown? Hardly even comparable to the 60/40.
5/ Note how I set the rebalance threshold there at 2%. Basically constraining the "risk in the portfolio" In the old days this was an issue, now with automated rebalancing triggers and alerts soon to be delivered by companies that @Onrampinvest will integrate with, this is easy.
6/ Let's take a look at the custom portfolio optimizer tool. 1) select your traditional market tickers $TSLA nd $MSFT added for giggles 2) add your crypto tickers 3) select your optimization method 4) rebalance frequency, 5) Constrain crypto? and 6) presto view the results.
7/ this can be done with any of your favorite holdings, and over time we will add the ability to customize your default portfolios. This will also be available to add your logo, and customize for an individual client to send the report to. We are just getting warmed up
So, check it out. If you are wondering how to get early access to the tools, there has never been a better time. visit academy.onrampinvest.com to sign up for your free 30-day trial. Realizing I am sounding like an infomercial I think I'll sign off but don't say I didn't warn you
But what about the volatility you ask? well, we have that too, and not just volatility, but the actually dynamic rolling volatility of assets over time. It wasn't that long ago that BTC and ETH were sporting Vol Equiv to biotech stocks. #lesson things change.
But look how dynamic crypto vol is. Sometimes it is correlated, but sometimes it is tradeable due to idiosyncratic events.
Then there are the correlation tools where you can evaluate crypto-crypto correlations or crypto-traditional markets
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Financial life lessons I wish I learned earlier in life. Mind the downside risk. Lose 20% you have to make 25% to get back to even. Lose 50% you have to make 100% to get back to even. Feeling a bit of a thread here.
1/ It's hard to think about the long term when watching an asset that re-prices itself every millisecond. Write down your investment philosophy. Don't have one, start now. Buy a notebook, if you can't afford one DM me your address. Every day write your investing principles.
2/over time your investment philosophy will take root in your heart and mind. Keep writing though. Don't ever stop. This will be your bible in the darkest moments when you want to throw in the towel.
#Bitcoin recently experienced the ominous "death cross" where the 50D moving avg crosses below the 200D MA. So much talk in #Crypto about the golden cross or "death" cross but does it really mean anything? /thread
1/Over the past seven'ish years there have been 8 bullish "golden" crosses and 9 bearish "death" crosses. Since the current one is unconfirmed so let's say 8 and 8. But they are only "right" less than half the time.
2/But that shouldn't matter too much if the magnitude of the "accurate" calls is more meaningful than the misses for the bad calls. So we looked at the returns of a "buy the golden cross go to cash on the death cross" The results are surprising. Nearly identical.