This is a repost from my blog posted on New years Eve. I wanted to take the opportunity to introduce you to the method I'm employing and get everyone caught up here on Steemit with those initial posts on my site. The concept nailed some big movers this week (TRX and FUN). In the future I will make the posts in real time on this platform. The original post can be found here. I'll also be posting the second article in the series which has some critical updates.
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I will be tracking a monthly updated crypto portfolio. The simple idea behind it is a combination of value and momentum. I will be looking at the current top 40 coins in terms on market capitalization at the end of every month. I will then sort those by market cap divided by 24 hour dollar volume. This ratio is a rough "value" estimation as noted at hackernoon.com. I will pick the top 10 of those crypto coins and rank those by 30 day percent change. The tracked portfolio will be the top 5 coins in terms of 30 day performance (momentum). At the end of the month we'll do the process again and choose 5 new coins. One thing to note is that we'll eliminate any coins that have negative 30 day percent change. Using that filter could conceivably leave us with no chosen coins.
Is this a good strategy? Maybe not for some reasons we can discuss as we go through time. One thing is for sure...This will be very very volatile. Another note, I will not actually be buying the noted coins and I in no way recommend you do either. For now let's just follow along and have some fun.
The output of our strategy for January is as follows:
Verge
Tronix
Qtum
FunFair
Litecoin
As we work our way through the month I'll have some updates and discuss some of the systematic concepts employed.
Also here is a link to a google doc sheet with the computations. Clicking on the dedicated crypto page above I will try to get some dedicated stats posted there eventually.
Have fun!!