October 23, 2024
Let’s take a straightforward look at the current crypto market using basic trading models. No fancy conditions, just a simple assessment of how two core approaches are performing.
Basic Portfolio Overview
We used a simple portfolio with two strategies:
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Short-Term Momentum Long: Buy coins that have shown recent price gains, expecting the trend to continue.
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Mean Reversion Long: Buy coins that have moved away from their mean price, expecting they will revert to the mean.
Top 20 Coins by Volume
Entire Crypto Futures Market
Basic Observations
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Short-term momentum has had a hard time on small coins this year.
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Mean reversion is doing quite well on both small and large coins.
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Momentum is far more stable on bigger coins.
Note: No fees or slippage are included in these models. It doesn’t matter in this case at all.
We trade a wider universe, and as you all know, we can make more money on the wider universe as it provides more volatility (see this section of our last market update), but we need to be patient.
