It's been about 10 days since I've updated about my crypto experiment.
There's a couple reasons for that and I'll get to them in a sec...
You Can See Previous Entries Here:
- Overview of the strategy
- The post where I invested my own money
- More details about my rules + how I handled a market "crash"
- Fun with daily interest
- Adding a rebalance ledger
First off, the main reason I haven't updated recently is that there hasn't been anything that would trigger any sort of rebalance. There was a few hour period where Tron (TRX) popped into the top 8 but I had a feeling it wouldn't stay so I didn't make any trades with my top 8. Sure enough, a few hours later, Tron was back out of the top 8.
I do actually own some Tron outside of my top 8 but I didn't want to do a full rebalance with my top 8 because I didn't think it would stick and I'd just be doing another rebalance a few hours later.
The other reason that I haven't been motivated to make another update is that I realized that I was part of the clutter out there of people "teaching" crypto. I don't want anyone to see my updates as me teaching anything. I'm NOT trying to teach anyone anything about cryptos. I'm simply journaling my experiment with crypto.
I see people talking daily on Facebook about how they're sick of all these "gurus" jumping on the crypto bandwagon and trying to teach it as experts...
I'm no expert. I'm a student. I study the hell out of it and make moves but I am not an expert at this stuff.
I buy the top 8 and periodically rebalance. There's no real analysis behind what I'm doing here. It's purely an experiment to see where I'm at a year from now and I'm bringing people in to watch my journey.
I do have holdings outside of the top 8 strategy that I've been journaling. The other coins that I own, I research the heck out of. I understand why they exist, who's behind their creation, watch their calendars of events, and get a grasp on the fundamentals behind them. I also (occasionally do short term trades based on chart analysis). I don't talk about those at all because my research could be totally wrong. My analysis could be way off base. I don't want people to think I'm trying to teach them how to trade cryptos.
The top 8 strategy that I teach is binary. I split my money up evenly between the top 8 by market cap. I rebalance any time a coin becomes more than 20% of my portfolio or less than 5% of my portfolio. I'll also rebalance if a new coin enters the top 8. That's it. It's black and white. I don't take profits. I just reinvest. The goal being that I want to see where I'm at in 12 months.
It will either work out well or it won't... I have a strong feeling that I'll be glad I did it but there's no guarantees.
Anyway... To my results...
Since my last rebalance, there's been a bit of a bloodbath in the crypto world. Pretty much all cryptos dropped like crazy for a few days.
Coin Market Cap excluded a whole bunch of Korean exchanges, causing the average prices to drop on the site. This led to some panic selling... And it never quite fully recovered since. I'm sure there are some other reasons but this was a big one.
My top 8 portfolio lost about 20% of its value in just a few days but, as you can see, it has almost recovered back to what it was at during my last rebalance (mostly thanks to Ethereum continuing to grow while everything else dropped).
So I haven't rebalanced or touched any coins since the rebalance. I imagine if Ethereum continues to move up, I'll be rebalancing soon. We're getting close to that 20% of my portfolio trigger.
So... That's the update. I'll either post another one next weekend or next time I rebalance.
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