The Bull Bear Bitcoin investment Strategy
Current Signal (delayed):
What is the logic behind the strategy?
Our research shows that Bitcoin is a momentum driven market that has upside risk but also can slowly loose more than 90% of it’s value. The strategy looks for a bullish move to enter. In other words, if Bitcoin rises, the strategy will participate. It the prices continues climbing, it holds and rides the wave up. If, on the other hand, the market shows weakness, it exits and waits for a better move. History shows that this type of momentum works in this particular market.
How often does it trade?
This is a medium to long term strategy and uses daily signals. Depending on the market, It may trade 2 or 3 time in one week or it may trade once in two months.
Why not HODL?
Holding on to Bitcoin is fine. But if you are unsure and feel there is a chance that Bitcoin ends up ‘not working out’ (i.e. slowly going to zero), this strategy will get you out and into cash long before that.
What type of protection are we talking about?
Holding Bitcoin has a historical drawdown fo -93%. That means that there was a point when if someone bought in, they would have lost 93% of their money. The strategy has a backtested historical drawdown of -63%. This is still large but survivable. In the first scenario a $100,000 account drops to $7,000 before it (hopefully) starts recovering, in the second it drops to $37,000.
Do you have historical results?
How much does it cost?
Decentralized non-custodial funds are available at TokenSets, Enzyme and dHedge.
For other custom solutions (ie, leveraged version or large trade execution) please contact us directly.