Hello Steemit,

welcome to the Introduction of the new FLIPPER portfolio.

What happened until now

From time to time it is necessary to optimize or change a functioning investment system if the market conditions have changed too much. When I started the PermaCryptoFolio experiment around 9 months ago, the Crypto Currency Charts looked completely different than today. At these times Bitcoin dominated all other Altcoins, and only 5 Altcoins had a market capitalization greater 100 Million USD.

In contrast, now we have 7 Coins with a market capitalization over one billion dollar, and the domination of Bitcoin is mostly gone. Note that the screenshot is from yesterday.

I startet the experiment with the 3 portfolios DORY, NEMO and FLIPPER. While DORY is very simple and only invests in Bitcoin, NEMO and FLIPPER are holding Bitcoin and the Top 8 Altcoins. The only difference between the 2 portfolios is that NEMO holds the coin permanently on an exchange, while FLIPPER has withdrawn all coins from the exchange. That's why NEMO can be traded faster and with less fees.

Some weeks ago I startet the ARIELLE portfolio, which was intended as an addition to FLIPPER to invest in the Altcoins on the ranks 10-25. ARIELLE performed very well over the last weeks and outperformed FLIPPER.

The Idea of ARIELLE was to invest more money into a coin the higher a coin is ranked. In best case this allows us to buy cheap into a coin if this coin jumps into the Top 25, and than there are good chances that we don't need to invest more money into this coin if the market capitalization of the coin rises and the coin climbs to higher ranks in the charts.

Current problems

I'm happy with the performance of all 4 portfolios, but there are some problems that I want to solve.

1.) If we compare the performance of NEMO and FLIPPER, the result is nearly the same. It does not make sense to run 2 portfolios with the same structure and performance in parallel.

2.) Initially the ARIELLE portfolio had the same size as the altcoin portion inside FLIPPER portfolio to minimize the trade volume if the weakest coin in FLIPPER and the strongest coin in ARIELLE are replaced. Due to the outperformance of ARIELLE compared to FLIPPER the ARIELLE portfolio invests now much more BTC into the Top 9 - Top 12 Altcoins than FLIPPER into the Top 1 - Top 8 Altcoins.

3.) Bitcoin is still the biggest coin valued by market capitalization, but is not longer dominating the Altcoins. I have to be prepared for a possible fork in the Bitcoin Network to BCC (Bitcoin Core) and BCU (Bitcoin Unlimited). In the new FLIPPER portfolio I want to treat Bitcoin like any other Altcoin. In future Bitcoin will not be one separate pillar of the portfolio, instead Bitcoin will be integrated into the Altcoin portion.

The new FLIPPER portfolio

The new FLIPPER portfolio is a combination of the old FLIPPER portfolio and the ARIELLE portfolio.

• Just like the old FLIPPER portfolio, the new FLIPPER portfolio will also hold a third of its funds in cash. But instead of a mix of Tether and SBD, the new FLIPPER will exclusively invest in SBD.

• The new FLIPPER portfolio invests two-thirds of the funds into the Top 25 Crypto Currencies. 80% of the funds are invested into the Top 5 Coins, the remaining 20% of the funds into the remaining 80% of the Top 25 Coins. We apply the Pareto principle here. Similar to the ARIELLE portfolio, the new FLIPPER portfolio invests less and less money the lower a coin is ranked.

• The new FLIPPER portfolio will be fully rebalanced once a week.

• The new FLIPPER portfolio invests in all coins that can be traded on Poloniex, Bittrex and Kraken. If one of the Top 25 coins is not traded on these exchanges, the coin is ignored and the new FLIPPER portfolio invests instead in the coins from place 26 onwards.

• The new FLIPPER portfolio will have the same size as the NEMO portfolio at launch.

• The new FLIPPER portfolio will start tomorrow.

What happens with the ARIELLE portfolio

I will continue the ARIELLE portfolio, but in a massively reduced size so that it fits the size of the NEMO portfolio.

Learn more about PermaCryptoFolio

If you are a new reader, please read first the PermaCryptoFolio experiment announcement.

Second follow these links to learn more about the 3 portfolios:

• DORY Portfolio
• NEMO Portfolio
• ARIELLE Portfolio

Withdraw all the funds out of the exchanges!

It is strongly recommended to withdraw all funds out of Cryptocurrency exchanges when not needed for trading there.

In the past I have written a series of pictured tutorials HOWTO withdraw

• STEEM
• SBD STEEM DOLLARS
• XMR Monero
• BTC Bitcoin
• ETH Ether
• ETC Ether Classic
• LTC Litecoin
• DASH
• REP Augur

Thank you for reading and have a nice weekend!

Disclaimer