You are viewing a single comment's thread from:

RE: Cryptocurrency Index Investing - Experiment

I think there are several variables you should consider. One is what is your measure of success here. To clarify are you planning on jumping into a trade and at some predetermined point cashing out, riding it for a set period of time, or having a specific % of profit that you will cash out of.

Next is assuming you have a profitable run what criteria will you reinvest in, and with what crypto. These few points may determine your success/failure because once your start trading emotions kick in, and you don't want to trade on emotions because that's where you get burned.

So your trading strategy from the get go is important. It sounds like you may be a forex trader, which is good in that you have the tools to read the charts which should improve your overall gain.

Just some of my thoughts for someone new in crypto. Good Luck

Sort:  

Trading strategy is straight indexing the top 10 coins in Coin Gecko every month. No emotion involved. I paper purchased $10,000 of the top 10 coins in Coin Gecko as of July 1, 2017. On August 1, 2017 i'll rebalance based on the top 10 coins in Coin Gecko on that day.

If a coin falls out of the top 10 it gets liquidated at the price on August 1st and the coin that enters the top 10 gets purchased.

The goal is to see if an index of these 10 coins can beat putting all your money in the "hot coin" and chasing returns.

Just as in stock investing where we see that 90% of hedge funds don't beat their index over a long period. I want to see if this same indexing strategy can beat the individual coin.