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CARUS-AR: a semi-passive Strategy

Published on: 29 November 2021

Quick Take:
Starting today CARUS-AR will be a semi-passive strategy | Yearly copy fee will be lowered 25% from 2% to 1,5%. | Goal is to provide a clear strategy and direction for CARUS-AR. | No more trading or protecting against corrections, focus on fundamentals. | We will be following the markets.

CARUS-AR strategy is changing. CARUS-AR has underperformed the past month because of too much trading, trying to protect capital and simply getting emotions and news influencing the strategy too much. It's time for true lasting changes to make sure CARUS-AR can evolve.

Evolving either personally, a strategy or a company is very difficult especially in volatile markets like Crypto. I have been speaking and thinking a lot about: past & current strategy, trading and long-term risks vs rewards.

The difficult conclusion is that the current active strategy; focused on protecting against corrections, trying to time trends and trading is simply not working any longer... Time for CARUS-AR to evolve

With growth comes challenges

The Bitcoin, Ethereum and Crypto space has exploded in value and support the past year. This has given CARUS-AR amazing gains, huge growth in Assets Copying Strategy (ACS) and increased pressure to try to protect gains.

In the past, with a smaller ACS, CARUS-AR has been quite successful in protecting gains and exiting markets when times looked risky. However, as many following CARUS-AR will have noticed this has become increasingly difficult to do and results have been quite negative the past month.

Some reasons I believe the current strategy of active management and trading is not working:

  • Adjusting the strategy to 25%, 50% or 100% USD takes time, the larger the ACS the longer this takes. This makes reacting quickly difficult and prices where assets are sold unpredictable during volatile times.
  • Crypto is stressful, non-stop and volatile. I can not deny that with the growth of ACS the pressure has grown. This will obviously lead to trading that is more based on emotion, panic and FOMO.
  • The time spent on constantly watching charts is not a good thing, it is not how I want to live my life. Have to make the personal choice to step away from day-trading and stick to fundamentals.

Difficult choices & long-term view

Making big changes is never easy, especially if you are changing something that worked amazingly well for a very long time. Ego plays a part in this, having pressure of having to perform and protect the gains during corrections.

Managing CARUS-AR and all things Crypto is my passion. The excitement & growth have amazed me and the rollercoaster ride from 2017 till now has been challenging, fun and rewarding. However (especially the past 6 weeks) this has become increasingly frustrating, time consuming and stressful. Have to make the choice to be more professional and provide a clear strategy and direction for CARUS-AR that I can follow and stick to.

The evolution

Starting today CARUS-AR will be a semi-passive strategy from now on focussing on Interoperability, DeFi, scaling and Layer 1 crypto projects.

CARUS-AR moved 100% back in the markets and has started this strategy.

CARUS-AR will no longer:

  • Day-trade
  • Try to 'catch' waves up or own
  • Protecting against corrections or crashes
    (this is the biggest change in strategy)

CARUS-AR will continue to:

  • Focus on holding solid assets
  • Do research & duedillegence for all holdings
  • Add or remove holdings based on research and data
  • Re-balance the strategy when holdings out- or underperform
    (sell some gains in token X to buy other holdings with it)
  • Slowly add to a USD position during bullish times, to be used to buy larger corrections

The biggest change here for copiers of CARUS-AR is that copiers will need to choose for themselves when to exit markets, take profits or losses when times are volatile... CARUS-AR will no longer try to protect against short term losses, but stay in markets.

The strategy is to stay in Crypto markets because the strategy is focused on the idea that Crypto, Bitcoin, Ethereum, DeFi, NFT and other related areas will be larger and more valuable in the mid- to long-term future. Copying CARUS-AR is sharing this view and a (risky) investment in the general Crypto space.

Should crypto fail/crash short- or even long-term, so will CARUS-AR sadly. We will be following the markets.

As a part of this strategy change, the CARUS-AR yearly Copy fee will be lowered 25% from 2% to 1.5%. (this will adjust in a month, monthly Performance Fee wil stay 4%).

Thank you

I would like to say thank you to all copiers and followers of CARUS-AR, for all the comments, likes, emails, support, feedback and more. I truly appreciate it.

Hope many of you wil choose to keep following CARUS-AR to see how far this Crypto rollercoaster goes.

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