The model portfolio Conservative KW2: Withstood the sale
As announced at the beginning of November, we would like to track the progress of our sample portfolio "Conservative" from the cryptocompass weekly. We compare the performance of this portfolio with that of Bitcoin, Ethereum, XRP, and a benchmark portfolio composed of the top 10 weightings proportional to market capitalization.
Conservative means that the portfolio is relatively low risk. It is therefore formed from older cryptocurrencies such as Bitcoin or Ethereum. In addition, a stable coin or cash position is established. Without going into too much detail, the Conservative portfolio consists of the following positions (ranked from strongest to weakest position): either Tether, another stable coin or fiat position, Omnilayer Protocol, Counterparty, Ethereum, Bitcoin, Dash, Siacoin, Monero and ripple.
Until January 10, the world seemed fine. The Bitcoin price was over $ 4,000, Ethereum headed for $ 160, and the next target of XRP was $ 0.40. A harsh sell-off provided a temporary end to this uptrend. Ethereum hit hardest, followed by the peer-to-peer comparison portfolio and lost 15 and 11 percent, respectively, in one day. XRP and Bitcoin have weathered this sell-off a bit better, but also lost around ten percent in one day.
Sample Portfolio Conservative: Hardly benefited from the price increase, but also hardly lost.
And the sample portfolio Conservative? The rate hike was only tentative and only emerged victorious in comparison to Bitcoin. The sell-off was much lower than the comparison assets for the sample portfolio:
In contrast to the top 3 crypto currencies and the comparison portfolio, the model portfolio Conservative fell only six percent during the sell-off. Of course, if you look only at the average daily performance, our sample portfolio is currently almost at the bottom. However, in terms of other measures such as daily fluctuations, value at risk and drawdown, the model portfolio continues to beat all other assets:
Unlike the top three cryptocurrencies and the benchmark portfolio, the pattern portfolio continued to maintain a drawdown of less than ten percent.
As in the previous week, the sample portfolio continued to confirm its claim to be a safe investment in the crypto market. This is also shown by the development of the assets under review over the entire fourth quarter of 2018:
Data based on cryptocompare.com and coingecko.com
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