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RE: Developing your own Active Crypto Portfolio Index
"So it should be taken with a pinch of salt."
This is an understatement right? Trying to apply past performance to future results is always bad, and in this case, it seems to be completely absurd. You can't use the last few months as a guide for anything!!
Or am I wrong?
Either way - as I prepare to begin my own cryptocurrency portfolio, this kind of content is super useful. Thank you for sharing! I suspect that my own portfolio will look pretty similar to your top ten.
Yes it probably is an understatement - crypto markets are completely insane.
I'm not recommending jumping into the above portfolio. Just the methodology of having a list of crypto that you look at and filtering them based on certain criteria.
If you look at crypto from a value perspective, buying when they dip below NAV (for funds - check my last post with Taas) and selling when they push above, then certainly past performance of the 'individual' making those decisions can correlate to future performance.
Also markets have inertia, they like to keep doing what they've been doing, that where all the sayings like 'the trend is you friend, until it ends' come from.
Ultimately when taking an approach like this you get to see patterns you might have overlooked.
You start to ask yourself questions - which coins are moving faster? Why is this coin lagging behind? What news is out?
Thanks for the comment :)
Ah, this is brilliant! I get you now.
If I understand you correctly - your goal is to measure how effective your process of picking a portfolio is - not to measure the actual performance of the coins. If you can repeatedly do a good job of researching and deciding, the actual performance is likely to work out in the long run.
Is that right?
Yep. Exactly that!
Focus on the process and not the outcome - then once you've developed a skillset the performance will come.
:D