What does a Model Crypto Porfolio Look Like?steemCreated with Sketch.

in #bitcoin7 years ago

SUMMARY

I have an opinion on what a good crypto porfolio should look like. This is just my opinion and not a financial advice nor a recommendation to follow, copy or target. It is posted purely for informative or entertainment purposes.

I believe a crypto portfolio should have a binary objective: Diversification and a De-Risking Strategy. These two attributes should enable a far better weathering of any correction or temporary downturn than a portfolio that pretty much shoots from the hips. It's usually during even the slightest sign of correction that persons often panic sell or the reverse driven by FOMO (Fear Of Missing Out). These FOMO portfolios often flawlessly execute the "all the eggs in one basket" tactic. Such directions are often driven by greed which is a very sneaky sentiment. It's so sneaky that it can even infiltrate the unconscious and control the decision making process. Those bitten by FOMO usually have been kidnapped by greed and it is a condition that's very difficult to self catch.

Let's consider the following composition of Crypto Coins and their proportions:

20% Bitcoin (BTC)
10% Ethereum (ETH)
5% Litecoin (LTC)
5% DASH
10% CASH (USD or equivalent FIAT)
50% Altcoins (12-15 different Altcoins, each selected based on highest percent profit probability.

This portfolio has a composition that allows exposure to Bitcoin, ETH, LTC and DASH; the stalwarts. Their percent proportions are balanced on a monthly or quarterly basis. The 10% and at times as high as 15% Cash postiion is invaluable during corrections because it provides a level of empowerment that helps keep the fear and greed at bay. When sitting on such large piles of cash, one can always and easily enter a correction phase and confidently buy at discounts and be aware that once the resumption of the original trend occurs, MASSIVE profits can be had.

The 12-15 different Altcoins should consist of those at or near the terminal end of a correction. In other words, waves 2 and 4 of an Elliott wave impulse. The higher the degree of trend these corrections can be found, often the better and more profitable. Each coin is therefore carefully selected. Therefore, each coin must also "earn the right to keep their position" within the portfolio. Usually, when a new coin candidate for the portfolio needs to be added, the 2,000% gainers are booted to make room for more ground floor opportunity coins. Hey, the life cycle of a crypto is tough!

Take from the Rich & Give to the Poor
Within a portfolio, identifying the high fliers, the coins with several hundred to thousands of percent gains allows one to then take incremental profits from these and redeploy into other coins in the same portfolio that are having bad days. These are the ones with the -15% or -27% declines. By doing so, one is effectively selling high and buying low within the portfolio and this can have powerful impact in growing the net liquidation value!

Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?

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If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or consider buying me a beer:
BTS Wallet - haejin1970
BTC Wallet - 1HMFpq4tC7a2acpjD45hCT4WqPNHXcqpof
ETH Wallet - 0x1Ab87962dD59BBfFe33819772C950F0B38554030
LTC Wallet - LecCNCzkt4vjVq2i3bgYiebmr9GbYo6FQf


Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.

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since DASH is high then u need ie EXCL there for next wave

Interesting selections, but I would add a few to that main list:
Decred and Monero, both have been performing as well as, if not better than Dash.

A very well written post!

I really value this advice, it makes lots of sense. Thank you! You're one of the only solid and consistent sources of good non-hysterical advice I've been able to come back to time and again in the crypto world! I'm a poor student trying to breed some wealth during this paradigm shift and you've been a great help! By the way, in the best possible way, your voice reminds me of that of Winnie the Poo! Charming!

Lol! woww yeah!!! you're right :) they have a peaceful & calm voice 🙃

Yes - very zen. Feeling calm and relaxed is exactly the emotion to have when trading cryptos!

except @haejin is not that bearish :-)

Lol! You are very right! Ha ha! Except he definitely doesn't remind me of the only cartoon bull I know:

wow, this is very valuable advice. Thank you so much!!!

Sounds good. You have previously talked about selling 30% of bitcoin (or other coins) due to where they are in the cycle. Also about buying the dips. How does this equate to your stated 10% btc etc. Ina portfolio in which bitcoin has run up and was at 20%, would you rebalance or wait till the Elliot waves indicated a downturn.

he does mention in the article that the portfolio can be rebalanced monthly or quarterly. so in the case of BTC running up higher than the other coins, one would trade out of BTC into those that hadn't performed or pick up heavily corrected altcoins, etc to rebalance the ratios

I am aware of rebalancing but if you are overweight btc (say 20%) yet have a dreaming but signal from your TA, I assume you wouldn’t rebalance? Or does that take priority?

Thanx for sharing. Upvoted and resteemed.

Bitcoin formed a classic head and shoulders with the arms up screaming Woooooo!

This pattern is associated with a drastic rise in price to the moon.

Great post @Haejin thanks to you and my prifits from xvg and tron today I have a nice portfolio of 16 different alt coins most of which you give your predictions on so thank you.
This guys great the only guy I follow for my crypto anyalsis since day one. I highly recommend you do the same.
Waiting for the next “KABOOM”

@haejin, this post is awesome, it should definitely be added to the permanent tutorial links!

I would like to do that to. How do you add to the permanent tutorial links?
Thanks!

@nexit. Follow twitter: Haejin (@Haejin_Crypto) | Twitter. You'll get notification on twitter that link directly to this page (stemmit). To turn on mobile notification, you go to the 3 vertical dots on upper right and choose that option.

Thanks for your kindness.
I do no have a twitter account.
I will see what i can do.
Thanks again.