SUMMARY
I have an opinion on what a good crypto porfolio should look like. This is just my opinion and not a financial advice nor a recommendation to follow, copy or target. It is posted purely for informative or entertainment purposes.
I believe a crypto portfolio should have a binary objective: Diversification and a De-Risking Strategy. These two attributes should enable a far better weathering of any correction or temporary downturn than a portfolio that pretty much shoots from the hips. It's usually during even the slightest sign of correction that persons often panic sell or the reverse driven by FOMO (Fear Of Missing Out). These FOMO portfolios often flawlessly execute the "all the eggs in one basket" tactic. Such directions are often driven by greed which is a very sneaky sentiment. It's so sneaky that it can even infiltrate the unconscious and control the decision making process. Those bitten by FOMO usually have been kidnapped by greed and it is a condition that's very difficult to self catch.
Let's consider the following composition of Crypto Coins and their proportions:
20% Bitcoin (BTC)
10% Ethereum (ETH)
5% Litecoin (LTC)
5% DASH
10% CASH (USD or equivalent FIAT)
50% Altcoins (12-15 different Altcoins, each selected based on highest percent profit probability.
This portfolio has a composition that allows exposure to Bitcoin, ETH, LTC and DASH; the stalwarts. Their percent proportions are balanced on a monthly or quarterly basis. The 10% and at times as high as 15% Cash postiion is invaluable during corrections because it provides a level of empowerment that helps keep the fear and greed at bay. When sitting on such large piles of cash, one can always and easily enter a correction phase and confidently buy at discounts and be aware that once the resumption of the original trend occurs, MASSIVE profits can be had.
The 12-15 different Altcoins should consist of those at or near the terminal end of a correction. In other words, waves 2 and 4 of an Elliott wave impulse. The higher the degree of trend these corrections can be found, often the better and more profitable. Each coin is therefore carefully selected. Therefore, each coin must also "earn the right to keep their position" within the portfolio. Usually, when a new coin candidate for the portfolio needs to be added, the 2,000% gainers are booted to make room for more ground floor opportunity coins. Hey, the life cycle of a crypto is tough!
Take from the Rich & Give to the Poor
Within a portfolio, identifying the high fliers, the coins with several hundred to thousands of percent gains allows one to then take incremental profits from these and redeploy into other coins in the same portfolio that are having bad days. These are the ones with the -15% or -27% declines. By doing so, one is effectively selling high and buying low within the portfolio and this can have powerful impact in growing the net liquidation value!
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?
Follow me on Twitter for Real Time Alerts!!
Follow me on StockTwits for UpDates!!
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If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or consider buying me a beer:
BTS Wallet - haejin1970
BTC Wallet - 1HMFpq4tC7a2acpjD45hCT4WqPNHXcqpof
ETH Wallet - 0x1Ab87962dD59BBfFe33819772C950F0B38554030
LTC Wallet - LecCNCzkt4vjVq2i3bgYiebmr9GbYo6FQf
Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
since DASH is high then u need ie EXCL there for next wave
A very well written post!
I really value this advice, it makes lots of sense. Thank you! You're one of the only solid and consistent sources of good non-hysterical advice I've been able to come back to time and again in the crypto world! I'm a poor student trying to breed some wealth during this paradigm shift and you've been a great help! By the way, in the best possible way, your voice reminds me of that of Winnie the Poo! Charming!
Lol! woww yeah!!! you're right :) they have a peaceful & calm voice 🙃
Yes - very zen. Feeling calm and relaxed is exactly the emotion to have when trading cryptos!
except @haejin is not that bearish :-)
Lol! You are very right! Ha ha! Except he definitely doesn't remind me of the only cartoon bull I know:
lol
omg yes! ha
wow, this is very valuable advice. Thank you so much!!!
Sounds good. You have previously talked about selling 30% of bitcoin (or other coins) due to where they are in the cycle. Also about buying the dips. How does this equate to your stated 10% btc etc. Ina portfolio in which bitcoin has run up and was at 20%, would you rebalance or wait till the Elliot waves indicated a downturn.
he does mention in the article that the portfolio can be rebalanced monthly or quarterly. so in the case of BTC running up higher than the other coins, one would trade out of BTC into those that hadn't performed or pick up heavily corrected altcoins, etc to rebalance the ratios
I am aware of rebalancing but if you are overweight btc (say 20%) yet have a dreaming but signal from your TA, I assume you wouldn’t rebalance? Or does that take priority?
Thanx for sharing. Upvoted and resteemed.
Bitcoin formed a classic head and shoulders with the arms up screaming Woooooo!
This pattern is associated with a drastic rise in price to the moon.
Great post @Haejin thanks to you and my prifits from xvg and tron today I have a nice portfolio of 16 different alt coins most of which you give your predictions on so thank you.
This guys great the only guy I follow for my crypto anyalsis since day one. I highly recommend you do the same.
Waiting for the next “KABOOM”
@haejin, this post is awesome, it should definitely be added to the permanent tutorial links!
I would like to do that to. How do you add to the permanent tutorial links?
Thanks!
@nexit. Follow twitter: Haejin (@Haejin_Crypto) | Twitter. You'll get notification on twitter that link directly to this page (stemmit). To turn on mobile notification, you go to the 3 vertical dots on upper right and choose that option.
Thanks for your kindness.
I do no have a twitter account.
I will see what i can do.
Thanks again.
Check out the Bitcoin price and other coin price few years ago: https://steemit.com/crypto/@karolynaz/bitcoin-357-usd-litecoin-3-52-usd-ripple-0-0042-usd-crypto-prices-in-2015
Cool. Thanks!
Excellent post, thank you for sharing this strategy!
@haejin How do you manage 12-15 different Altcoins? do you have a spreadsheet we can see?
Also why don't you see Bitcoin Cash as a stalwart?
I guess you can have some others big coins in your portfolio, I do not own Dash but got Bcash. That said, I think that BCH should be seen as middle term holding, when BTC will upgrade it could become useless imo ..., but who knows ...
BTC will not be saved. If you believe in bitcoin, the original vision for bitcoin, you should believe in bitcoin cash.
When you realize that big blocks isn't a permanent solution and see segwit adopted and lightning in action your opinion will change. Hundreds of people work on BTC. Bcash has one known developer the rest is a small team of unknowns. Roger ver brags that BCash is fast and cheap. But if you look their blocks are half empty because not many people are using BCash. I personally believe that coinbase is trying to sabotage btc by not upgrading to segwit. Purposely clogging the network too push BCash. At this point I use litecoin for transactions and Bitcoin as a store of value. Just like you would gold and silver.
On chain scaking is defined in the whitepaper. Segwit breaks the legal and security aspects of the Bitcoin system. The Lightning Network (LN) is not peer-to-peer and thus is not Bitcoin. LN will not live up to the hype and is already two years late and is supposedly another two years away. This is much too late considering BTC is unuable with high fees and conjestion. Bitcoin Cash is here now and is usuable and will have some additional features onboarded very soon. I'm selling my remaining BTC for BCH.
http://bitcoinist.com/bitcoin-fees-mainnet-lightning-network/ Lightning network is live today on the mainnet. Not 2 years away buddy.
Good luck HODLing BCash instead of BTC. I hope that works out for you. There is a reason BCash isn't on Haejin list.
Because he's a purely technicals trader who cares nothing for the fundamentals?
people like you will never understand that talking shit about Bitcoin it is the worst possible way to promote your BCASH.
all this propaganda, trying to discredit bitcoin as "bitcoincore", all you do is hurting yourself with these attacks on btc as Bitcoin it is still the crypto flagship that drives the entire market.
Fortunately this is not a serious threat to btc as shown already by @joebobby187, otherways you would endanger the entire movement with your selfish attempt maximizing your bcash proftis.
What is bcash? There is Bitcoin Cash.
Get uaed to it.
thanks for your valuable input on the discussion. But you proof the point , you are obviously not able to argue with the facts and all that is left to do is trying to spread misinformation and blatantly attempting to overtake bitcoins name, good luck.
Thank you Barsic for atleast trying to change there mind, i grow tired of these bcash altcoin kids.
Atleast i can sleep good knowing they will be holding empty bags anyway.
I use www.altpocket.io ! They already have API support for Bittrex, Poloniex, COinbase, MEW. Soon also for Binance and they started developing an iOS app.
Thank you! Looks like they have the ability for you to enter the price and date when you first bought which is nice :)
Use an app like Coin Stats. Enter all your coin info (coin, amount owned, even date purchased) and then you have it right there in front of you: gains, losses, % owned compared to the rest of your portfolio. Its great!
Is there a website like Coin Stats that allows date purchased? That sounds great but I dont like using a phone
just use blockfolio or some other crypto tracking software (at the peek my portfolio consistet of almost 50 coins in total)
Bash has been bashing the Altcoins since August. From average of 300 to top at 3000 recently, that is crystal clear 10x solid returns in four to five months.
have to practice taking 10 percent profits to change it to fiat to btfd, or else just become a hodler
Kinda of feeling this approach viable though half the mind is thinking of the Philosophy of fighting the status quo by not be in their control (not holding their Fiat, not be slave to their time working hours, insurance fear mongering etc).
thats why it depends on the person as an investor, i got few friends having different approaches to investments, see whichever that fits you. Because by the end of the day, you are responsible for your investments, advice and tips is just a guide, you do not need to follow all, you must however follow what you have decided and also rethink on the decision again and again and again until at a time where you feel that you are matured in investment intelligence (lolz, we have emotional intelligence, so why not "investment intelligence" ) that you have things backing you on the decision that you make.
To most people, it's back to investment, thinking of stocks. To myself, it's about exiting from the illusionary world. Move into that other dimension, yet a fixed intervals can bring into this dimension the assets or value as needed.
Tu Información es muy buena, no tiene mucho que te empecé a seguir saludos.
Excellent advice, especially about keeping cash on hand for corrections!
Why so bullish on DASH? Thanks for this one.
Sage advice. Thanks.
Thanks Haejin, your blog is a treasure.
Looks like we have breakout on BTS.
@Haejin when btc is going down do you still keep the 50% in alts? i mean how do you manage the influence that btc has on alts' price?
i think its mainly for long term hodlers. you may set a stop limit sell order but what if it bounces back up and you did not had a stop limit buy order then you will lose out and have to chase the price up buying it when it goes up. Unless you have lots of reserve to put also a stop limit buy order. So choose one, be a hodler or stop limits in place.
thats when you redistribute (as stated in the post)
Based on your prior suggestion...I loaded up on BTS so future generations would be well taken care of...is that now foolish?
I think you're headed in the right direction. Foolish would be to not be invested in the crypto-sphere.
You're the best '!!! Thank you for sharing.
I love the writing style!
great post
Thank you for sharing your knowledge. I know of this little war ongoing with some Steemians flagging your posts. I have no idea what the war is about. What I do notice is that you present yourself as a crypto technical analyses expert and I don't have any information not to trust that. In this post, I also think you provide some good information.
What I also notice, is that you never engage and respond to comments to your posts.
Why don't you engage with your followers? Those who give you thousands of dollars of revenue each single day? Your followers do have questions, they want to learn from you, reason for them to follow you and reward you. But it looks like it is a single way street. Or am I missing something? When so, my apologies.
Excellent advice. Particularly about the fiat percentage. If you have a certain amount of fiat availible to invest you just can't miss some great oportunities that come at corrections or some particular FUD that shakes "weak hands".
Excelent Advice! Upvoted and resteemed!!!
Even with those huge downvotes thats still your [email protected] post good content but idk about that
@haejin could you also do a post on swing trading tips. That would be greatly helpful.
Great post @haejin! Nice breakdown of the "how" and "why".
Upvoted and resteemed!
amazing strategy.Much obliged for sharing it
In fact, Bitcoin is an awesome coin thank you to share it among us
Grateful, as always.
I like this post. Take from the rich and give to the poor. God Bless you. Don't stop posting. ✅
First!!!
beautiful
Just Perfect!
Good info boss thank
분석만이 아닌 투자의 방법에 대한 글 너무 감사합니다. 해진님 :-)
감기 조심하세요~
Very wise strategy. Thank you sir!
Great strategy. Thank you!
Perfect Composition liked it.
My Blog @asifgoraya123
I hope you can take a look at DENT next.
Well, most of your post I agree with. Learned a new term FOMO. thanks. But I don't agree with you on using the profits made on gainers to buy some more losers. That may just make you stock more and more losers. And if those loser coins go for a massive correction you are gone or at least sit back and wait for the doom day to be over.
By losers he means coins that have to go up and are on a downside, so that are cheap and will make a massive profit when going up. Technical analysis is used to spot these.
also thats why the alt portfolio needs to be large enaugh. For sure you cant bet a 100% on TA but if among some massiv gainers you will have some shitcoins then you will barely notice that and sort them out on your next portfolio review if you decide not to wait any longer.
You made a right point @barsic. Shitcoins profit should be taken asap but dont invest all the earnings in a bearish coin until it has started to make a bullish trend
Thanks for your response. I do understand what he meant by and that's why I made an opinion. But many a times buying more and more of a bearish item results in huge losses as the coin may even break the resistance and go further below. Thanks.
If you can't bear 30% corrections, you don't deserve 1000+% gains.
Well said @hashbox. I do bear corrections. My point was different. Anyways thanks for the response. Love.
That's what TA is for. To find the coins that are ready to explode up. Which in this market is almost guaranteed to go up. Set your stop losses. Reassess your coins and make a decision based on anaylasis. Not to blindly pick some random coins. Or shoot from the hips.
I agree with you. Just wanted to add a point here. In cryptomania fundamental analysis is equally important. Thanks.
Thank you for your advice.
Nice!!
The give to the poor part is easier said than done though, ive been trying to use this method but i find that 98% of coins all and rise at the same time, i almost never have a senario where a bunch or even one of my coins are rising when a bunch or even one coin is going in the opposite direction. Look at the last few days for example, all coins were in the red, now it seems theyre all turning green.
cant agree with that. maybe my portfolio is larger then yours but I use this exact strategie and almost on a daily basis I have coins that outperform others. Your problem seems to appear due to a too narrow portfolio
That's so fucking valuable, I'll even resteem that!
Great advice. Thanks Haejin!
Great :) i follow your ideas
Nice I have a better understanding of what's an investment portfolio is. Thanks so much @haejin :)
That's a really useful pots. Thanks Haejin!
This is the method I have been going with. % a little different, but same idea.
40% BTC
20% LTC
then 40% alt coins (I have only 9 though).
Looking to pick up a few more alts...just trying to figure out the ones with the highest percent profit probability. Anyone have thoughts on that?
@haejin, thanks so much for the effort, and more importantly, the time that you devote to informing. This post is a perfect summation of all your experience: Awareness, continuous learning, risk mitigation, diversification, etc. I hope Steemit becomes a platform for much more of what you provide.