Strategy change November 2021
Published on: 23 November 2021
The past month have been highly volatile for Crypto markets, and CARUS-AR has tried to actively manage the risks and swings. In the past we have had great success with this but also a few bad moves. It's time for a change...
The content below is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice.*
Time for a change
With the fantastic growth of both Crypto and CARUS-AR Assets Copying Strategy (ACS), the pressure and difficulty of managing the strategy has grown with it. The past two months 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. We did still outperform Bitcoin, but ohnest reflection does show simply holding our projects would have given us more returns and less stress.
CARUS-AR returns VS Bitcoin (BTC) the past 3 months
FOMO is hard to fight, a system is better
Copiers of CARUS-AR and followers on Twitter will be aware of the active changes of the strategy, often changing from bullis to bearish and back again. This is not the correct strategy I want CARUS-AR to be long-term.
The changes in strategy
CARUS-AR will from now on have 4 templates:
- Risk LOW - 75% USD Our lowest risk profile with 75% USD. We keep all our ALTCOIN holdings with a bit more focus on Bitcoin. We will not be totally out of markets and still enjoy some of the gains that are made. This template will be used at the most risky times.
- Risk MEDIUM - 50% USD A neutral template with 50% USD and 50% diversified holdings. Good for when trends are just unsure.
- Risk HIGH - 25% USD More agressive, just 25% USD and more focus on ALTS, DeFi and L1 projects. When trend is bullish this will be the template we use.
- Risk MAX - 0% USD All in template, for the most bullish times when trend is up and risk seems low.
With forcing these 4 templates as choices, CARUS-AR Startegy is prevented from panic selling, over trading and other too risky moves. It will also reduce stress and keep focus on long term trends.
A part of the strategy that I plan to keep is to take profits into USD on the way up slowly. Adjusting the 4 templates as we do this. With the profit position we can then take advantage of large corrections to 'buy the blood'.
This new strategy is 'always long' now (ranging from 25% to 100%) this will of course mean that should the worst happen and Crypto goes into a long bear market, losses will be taken.
As most will understand, having a stratgey the size of CARUS-AR is both very rewarding and stressful. I am fully aware that in the past bad choices have been made on human emotions and reactions to news that did not affect the long term trend.
After much self reflection I now choose for less trading, more fundamental research and more 'time in the market', trusting in the idea that Crypto, DeFi and this ecosystem in general will be larger and worth more in the coming years. Should this be not the case then any Crypto focussed strategy will be a bad investment, it is the risk we all take...
The goal of CARUS-AR Strategy
I believe that Crypto, DeFi, Blockchain, Ethereum, Bitcoin and many L1 protocols 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 any longer.
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.