Hi Holder! Let’s start out Cryptocurrency Analysis we want to find best cryptocurrency portfolio in May 2019
Analyze Crypto May
The market in May confirmed its bullish views and Bitcoin showed an increase of 58.4%, the peak of Bitcoin revenue in May was an increase to 78%, while the maximum drawdown was 32.6%.
This calculation is carried out with the help of backtesting in the service Holderlab.io . Holderlab.io is a service for automated crypto portfolio management with automatic rebalancing of assets (threshold or periodic), searching for efficient frontier and analysing assets using a correlation matrix and other crypto investments tools.
When compiling a crypto-portfolio, we take into account the capitalization, the time during which the asset is in the top 100 (to exclude “Pump” and random entries in the rating) and the maximum yield for the selected period.
Now we backtesting first part of top 100 cryptocurrencies, and sort it by profit more then 40%.
And we sorted:
Bitcoin – 58.4%
Litecoin – 48.1%
Dash – 45.57%
MaidSafeCoin – 71.73%
Monero – 47.72%
NEM – 60.43%
Ethereum – 57.78%
Komodo – 39.85% (Let’s give him chance)
EOS – 52.96%
Bitcoin Cash – 58.64%
Binance Coin – 45.83%
Chainlink – 115.71% (Wow)
Bitcoin Gold – 66.28%
Bitcoin Diamond – 43.58%
THETA – 44.19%
TrueChain – 63.89%
Pundi X – 59.47%
Holo – 68.08%
Aurora – 117.8% (Wow)
ThoreCoin – 59.58%
Qubitica – 80.18%
ABBC Coin – 62.78%
Bitcoin SV – 242.91% (Hmmm)
BitTorrent – 121.23% (Wow)
Cosmos – 50.22%
Let’s calculate it together and research:
So let’s look at the results:
Profit – 68.36% Max. Profit Peak – 86.54% Max. Drawdown -7.02% St.Deviation – 23.14%
Profit is higher than Bitcoin, only by 9.96%, but we reduced the drawdown by 25.58%. So let’s try to cut our portfolio and create “club +60%” and more.
How we allocated Assets? Yes we use Strategic Asset Allocation, because we talk about theoretical performance and we don’t want to tailor the results to the past performance market. You can read more about Crypto Asset Allocation here
Now we have results of “club +60%”
Profit – 88.47% Max. Profit Peak – 113.94% Max. Drawdown -8.2% St.Deviation – 29..88%
So let’s find best rebalancing strategy:
In Holderlab.io, you can find different free rebalancing strategies, such as threshold rebalancing or periodic rebalancing, or you can use them together and you can backtest your rabalance strategy.
We tested different threshold rebalance strategy, and different period of rebalance. And the key is how our assets is deviated. And we found that the 5% threshold rebalance show us best return.
And this is results of 5% threshold rebalancing:
Profit – 108.32% Max. Profit Peak – 108.77% Max. Drawdown -23.06% St.Deviation – 32.64%
So we want to skip Bitcoin SV from other portfolio, we will look at the behavior of this coin for several months, but now throw out of the portfolio.
The latest version of the portfolio consists of: MaidSafeCoin, NEM, Chainlink, Bitcoin Gold, Bitcoin Diamond, TrueChain, Holo, Aurora, ThoreCoin, Qubitica, Abbc Coin, BitTorrent
And Final backtest results is: Profit – 88.02% Max. Profit Peak – 101.92% Max. Drawdown -23.53% St.Deviation – 27.32%
Let’s look at Cryptocurrency Analysis in June.
This article is not a recommendation for investment or investment in cryptocurrency, as well as perceived as investment advice. Be careful, because investing in cryptocurrencies is very risky and you need to consult with your financial advisor. Past earnings do not guarantee future earnings.