CARUS-AR strategy adjustment
Published on: 19 April 2021
After a lot of thinking and analysing of data + some great talks with Crypto and private friends I have decided to stop trading the short term swings. The risk reward with the markets as they are are simply not with it, not to mention the stress it gives.
The content below is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice.*
Huge growth, medium performance
The past month have been highly volatile for Crypto markets, we just had the largest correction / crash in a year, DOGE is going to the moon, COSMOS (ATOM) and Terra Money (LUNA) underperformed after great moves up and I have done my best to actively manage it.
CARUS-AR has grown amazingly in follower size and Assets Following Strategy, from $1.4 million AFS to almost $11 million AFS last month and $9 million AFS at this time!
The past month my active trading and exiting the markets has not been good for performance, whilst I did protect against a huge crash, the markets have recovered and in the end it has cost some % in performance.
Stress is bad, markets are very hard to trade
After a lot of thinking and analysing of data + some great talks with Crypto and private friends I have decided to stop trading the short term swings. The risk reward with the markets as they are are simply not with it, not to mention the stress it gives.
The adjusted strategy
CARUS-AR will from now on rebalance when:
- A holding greatly outperforms other holdings Example: LUNA is +16% when other holdings like BTC and ETH are +2-3%. I will rebalance to take the extra gains from LUNA to buy other holdings 'Take profit for LUNA'.
- A holding underperforms other holdings Example: REN is -18% when other holdings like BTC and ETH are -2-3%. I will rebalance to buy extra REN using other holdings 'Buy the dip for REN'
- Holdings are removed or added Will keep doing analysis and research of course and will add or remove projects if I see good opportunities or lose confidence in a project.
- I want to take profits on the way up I will keep adding slowly to a USD position over time as long as markets are bullish. This USD position can then be used to 'Buy the blood' if large corrections of 20%+ happen.
I will move out of markets if I truly think the bull is over, but will not have active sell rules or try to time this any longer. The risk + stress of this is simply not worth the possible reward if done correctly.
The goal of CARUS-AR Strategy
I believe that Crypto, DeFi, Blockchain and Bitcoin have a exciting future the coming 1-10 years, so the long term strategy should be focussed on that, not trying to time markets.
With CARUS-AR I provide an easy way to hold an array of well researched, serious and high potential Crypto and DeFi projects. Actively managed to take profits on the way up and to stay diversified.
CARUS-AR will not take the most risk, nor will it try to time the markets. CARUS-AR will likely even underperform to more high risk strategy if markets are very bullish (since we hold a larger position in USD on the way up) but will, hopefully, be able to provide a more balanced return long-term.
I will keep doing a lot of research, share my thoughts and ideas. Thank you all for following me, I would love to hear any feedback anyone might have.