My trading will be based on asset allocation with spot trading and long-term investment, and the investment portfolio can be viewed as a cryptocurrency fund or a currency storage solution.
The trading system is mainly divided into two parts: asset allocation and rebalancing. On the basis of long-term investment, profits can be earned through rebalancing from market fluctuations and sector rotation.
1. Asset allocation, for example, 20 cryptocurrencies, covering various tracks as much as possible, with a brief description of the cryptocurrencies and allocation ratios as follows:
BTC (20%): King of cryptocurrencies
ETH (15%): King of public chains
SOL (3%): L1 public chain, experiencing explosive ecological development
SUI (2%): High-performance L1 public chain, constructed with MOVE language
MATIC (3%): Well-established project, developing ZK series L2 solutions
ARB (2%): Leading OP series L2 project, various on-chain applications thriving
AAVE (3%): DeFi lending leader
LINK (3%): Leading oracle, CCIP involved in SWIFT cross-border transfers and cross-chain fields
UNI (2%): Leading DEX
JOE (2%): Avalanche DEX leader
CAKE (2%): BSC DEX leader
PENDLE (3%): Interest rate trading market, dual benefits from RWA and LRT tracks
ETHFI (2%): Currently the only LRT project issuing tokens
ONDO (3%): RWA leader, project backed by Goldman Sachs and invested by BlackRock
TAO (3%): AI leader
RNDR (3%): Decentralized GPU network, multiple concepts including AI, DEPIN, GameFi, and Metaverse
TIA (2%): Modular blockchain leader
ATOM (2%): L0 leader, thriving ecological development, many projects are built using COSMOS SDK
IMX (2%): ZK-L2 specifically designed for NFTs and GameFi
STX (2%): Leading L2 in the Bitcoin ecosystem
The above totals 80%, with the remaining 20% in USDT serving as a buffer and for buying more in case of a downturn.
Of course, you can also choose just a few mainstream coins, as the risks vary.
2. Continuous rebalancing
When the price fluctuations cause the proportion of cryptocurrencies to deviate from the originally set ratio, a technical analysis (mainly using the Volume Weighted Moving Average, VWMA) will be referenced. When the moving average breaks and turns, rebalancing can be conducted to bring the fund allocation back to the set values.
We will periodically re-screen cryptocurrencies, adopting an in-and-out approach like an ETF; when a new coin is included, an old coin will be replaced, allowing the investment portfolio to retain the strong and eliminate the weak.
#投資皆有風險
