Updates to strategy and portfolio
Specifically, I have updated the core four rules of the strategy as follows:
- I buy and hold coins for the medium to long term which I feel have growth potential.
- I take small punts on small and interesting coins which have significant growth opportunity.
- I rebalance my portfolio based on tiered investments, primarily investing in Tier 1, long term stable growth coins supported by speculative investments on small/new growing coins which might see significant gains and accelerate my stable coins.
- I take money off the table, 5% for each 25% up, back into FIAT (British Pounds), to give me an income while still benefiting from compound growth
I have also included further detail of how I rebalance my portfolio:
- Move into new investments based on a combination of factors such as price, news, charts and general gut feel, for example, if a coin is making a parabolic move without supporting news and I feel it is overbought, then I will sell off some and move into another coin. Equally, if I think a coin is oversold or has more room to grow, then I may increase my holding.
- Grow my currency coins over service tokens. What I mean by this is that there are currency coins, such as Bitcoin, Dash and Monero, which primarily act as a store of value or payment mechanism. You also have service tokens which operate primarily to support a service, such as Ripple, Siacoin and Factom. Service tokens are speculative investments based on unproven business models, as such there is less reason to hold long term and their movements are more volatile. Also with service tokens, there is a need for price stability for user experience and a natural mental limit to the potential market cap. Currency coins do not have any upper limit for market cap, and the business case is proven. Currency coins give my portfolio stable growth where as moving in and out of high-performance service tokens accelerates my ability to buy more of them.
In doing this, I felt it is important to be fully transparent about the performance of my portfolio and thus why it is working for me right now.
With August performing so well, up +1,100% for the year, it was important for me to look more closely at both my strategy and portfolio and ensure they are robust enough to ride through the current bull run and any forthcoming corrections.
Any questions, then please do ask.