3Month Horizon 10Alt Fund Report #1
Welcome to the weekly report of the 3Month Horizon 10Alt Fund
Monthly performance
Weekly Performance
Report
As can be seen above, the fund performance this week wasn't very good, and most of it is related to the BTC price correction.
This week i also learned a few more things about how Genesis Funds work, and i will be doing some changes on the strategy (more about this below).
Some updates also happened on the platform, and a interesting feature is that now we can see what is the size of each asset position.
You can check it below the performance graph, on the fund page
Starting today, below i will include wich asset had the best and the worst perfomance on the past week.
Also included on this report, i will be comparing the risk indexes of the fund.
Best and worst asset performance
Best performance
THETA (4% of the fund) +43.62%
Worst Performance
KAVA (3% of the fund) -17.25%
Risk Ratios performance
Monthly performance
Calmar Ratio
Report #0: 2.73
Report #1: 1.82
Performance: -0.91
Reference:
above 0.5 = good
above 3.0 = very good
Sharpe Ratio
Report #0: 9.01
Report #1: 3.83
Performance: -5.18
Reference:
It is positive when the investment’s return is greater than the risk-free rate.
It is negative when the investment’s return is lower than the risk free rate.
It is exactly zero when the investment’s return is exactly equal to the risk-free rate.
Sortino Ratio
Report #0: 70.58
Report #1: 62.25
Performance: -8.33
Reference:
above 2 = good
Upcoming Changes to the fund strategy
These first days of the fund allowed me to understand how Genesis Funds works, and with that knowledge i will be doing some changes on how the fund will work.
The basic strategy that i posted on the Report #0 will remain the same:
The basic strategy of this fund is to invest in 10 Altcoins that have the biggest growth potential for the Next 3 months.
Although the profit target is aimed at three months, every month i will be reevaluting the composition, removing/adding cryptocurrencies as the market changes.
The way i choose wich coins will be part of the fund is a mix of fundamentals, technical analysis and market sentiment.
The main change will be related to how i will rebalance the funds.
At first, i thought that the managers would only be allowed to change the asset allocation once a month, but actually, each day, the managers are allowed to change 3% of the allocation (cumulative, for example, after 10 days, i am able to realocate 10% of the assets).
This will allow a better flexibility to adjust the fund composition, and it make possible 2 main changes:
#1 Take profit and Stop Loss
Starting on the next realocation (that will happen 08-27), i will set a price Take profit and Stop losses to each asset.
The idea is to realize part of the profit to protect the fund performance, and to avoid possible crashes due to unknown events that might happen on the future.
The stop loss for each asset will be big enough to allow the price to move back in case a correction happens during the period, but the objective is also to protect the gains of the fund.
Every time a Take Profit or Stop Loss price is reached (both will be described on the reports), i will liquidate the position, and trade the asset (total or partial) for USDT.
#2 Weekly reevaluation
This flexibility of funds reallocation will also allow to have a faster reaction to any event that might change my initial analysis of the fund compostions.
If i detect the possibility of any cryptocurrency price rise or fall in a short-term window, i might reallocate the assets to try to get these movements.
Today assets allocation
No changes happened on the asset allocations this week.
Zcash (ZEC) - 39%
"Zcash is a decentralized and open-source cryptocurrency that offers privacy and selective transparency of transactions using advanced cryptography."(source)
Week Performance
Compound (COMP) - 21%
"Compound (COMP) is an ERC-20 asset that powers the community governance of the Compound protocol; COMP token-holders and their delegates debate, propose, and vote on changes to the protocol.
By placing COMP directly into the hands of users and applications, an increasingly large ecosystem will be able to upgrade the protocol, and will be incentivized to collectively steward the protocol into the future with good governance." (source)
Week performance
Crypto.com(MCO) - 8%
"Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity. With over 1 million users on its platform today, Crypto.com provides a powerful alternative to traditional financial services, turning its vision of ”cryptocurrency in every wallet” into reality, one customer at a time. Crypto.com is built on a solid foundation of security, privacy and compliance and is the first cryptocurrency company in the world to have CCSS Level 3, ISO27001:2013 and PCI:DSS 3.2.1, Level 1 compliance. Crypto.com is headquartered in Hong Kong with a 200+ strong team. For more information, please visit www.crypto.com." (source)
Week Performance
Aave (LEND) - 7%
Aave is an open source and non-custodial protocol enabling the creation of money markets. Users can earn interest on deposits and borrow assets. (source)
Week Performance
Band Protocol (BAND) - 7%
Band Protocol offers a decentralized data oracle by making data readily available to be queried on-chain, using delegated proof of stake (“dPoS”) to ensure data integrity. It aims to be the go-to data infrastructure layer for Web 3.0 applications by providing decentralized, curated off-chain data to smart contracts through oracles managed by its dPoS consensus mechanism. (source)
Week Performance
Chromia (CHR) - 5%
Chromia (by ChromaWay) is a new blockchain platform for decentralized applications, conceived in response to the shortcomings of existing platforms and designed to enable a new generation of dapps to scale beyond what is currently possible. Chromia is both a blockchain and a relational database. This means that decentralized applications (dapps) can be written in a way that is familiar to developers all over the world, whether they work on large enterprise applications, games, or smaller projects.
Week Performance
THETA (THETA) - 4%
Theta is a decentralized video delivery network, powered by users and an innovative new blockchain. Theta is an open source protocol purpose-built to power the decentralized streaming network and will allow for vertical decentralized apps (DApps) to be built on top of the platform to enable esports, music, TV/movies, education, enterprise conferencing, peer-to-peer streaming, and more.
Week Performance
ICON (ICX) - 3%
ICON is an interconnecting blockchain network. ICON can connect independent blockchains without the use of additional third-party intermediaries. Various blockchains can communicate with each other through the ICON platform. By connecting siloed blockchains, ICON aims to become the largest blockchain in existence.(source)
Week Performance
KAVA (KAVA) - 3%
Kava describes itself as a cross-chain Defi platform for cryptoassets. (source)
Week Performance
ANKR (ANKR) - 2%
Ankr strives to build a resource efficient blockchain framework that truly enables Distributed Cloud Computing (DCC) and provides user-friendly infrastructure for business applications. Ankr Network proposes a novel blockchain solution that addresses the current barrier to mass business adoption: (1) Resource-efficient mining scheme based on Proof of Useful Work (2) Scalable Blockchain framework through Plasma sidechains and sharding (3) Native oracle service connecting real-world data of existing Internet solutions to on-chain entities (source)
Week Performance
Genesis Vision Token (GVT) - 1%
A platform for the private trust management market, built on blockchain technology and smart contracts. They unite exchanges, brokers, traders, and investors into a decentralized, open and fair network, making the financial market even more global. (source)
Week Performance
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You seem to enjoy managing your fund with Genesys Vision. ;)
Yeah, it is an interesting concept, and since i am going to get my financial advisor certificate at the end of the year it is a great way to understand how funds management works.
It is always the experience that matters the most.