Hi Holder! Let’s start out Cryptocurrency Analysis we want to find best cryptocurrency portfolio in June 2019, but before let’s take a look at our “Best Crypto Portfolio May 2019” in June, and compare results with new one.
So the results “Best Crypto Portfolio May 2019” not so impressive in June.
Profit – 8.56% Max. Profit Peak – 11.98% Max. Drawdown -4.78% St.Deviation – 6.94%
Bitcoin create 40,64% profit with Max. Profit Peak 61.26% in June.
Now we backtesting first part of top 100 cryptocurrencies, and sort it by profit more then 30%.
Now let’s return to our Cryptocurrency Analysis
We sorted cryptocurrencies:
Bitcoin -40,64%
Chainlink – 270,06%
NEO – 36,83%
Qtum – 71,26%
Huobi Token – 31,04%
HedgeTrade – 267,45%
HyperCash – 124,87%
Qubitica – 41,38%
Kucoin Shares – 45,49%
ThoreCoin – 47,22%
Energi – 320,55%
Metaverse ETP – 62,26%
GXChain – 96,23%
Ardor – 40,4%
Insight Chain – 91,92%
VestChain – 38,42%
Nash Exchange – 48,08%
Let’s calculate it together and research:
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.
So let’s look at the results:
Profit – 98.46% Max. Profit Peak – 126.62% Max. Drawdown -50.73% St.Deviation – 33.01%
We saw huge drawdown. Let’s look how this cryptocurrency assets is correlated
| Bitcoin | -0,073 |
| Chainlink | 0,584 |
| NEO | 0,391 |
| Qtum | 0,462 |
| Huobi Token | 0,633 |
| HedgeTrade | 0,662 |
| HyperCash | 0,571 |
| Qubitica | 0,689 |
| KuCoin Shares | 0,699 |
| ThoreCoin | 0,57 |
| Energi | 0,692 |
| Metaverse ETP | 0,649 |
| GXChain | 0,504 |
| Ardor | 0,615 |
| Insight Chain | 0,208 |
| VestChain | 0,625 |
| Nash Exchange | 0,698 |
With Holderlab.io we research 3 month correlation between cryptocurrencies and saw that the Nash Exchange, Metaverse ETP, Kucoin Shares, Qubitica and HedgeTrade have big correlation. That’s why we have big drawdown.
Now we go to find weight of our cryptocurrency assets, and then take a look at our new performance. We will do this with efficient frontier.
Now we have optimal cryptocurrency portfolio weights
| Bitcoin | 7,21% |
| Chainlink | 5,68% |
| NEO | 8,5% |
| Qtum | 11,89% |
| Huobi Token | 11,0% |
| HedgeTrade | 12,54% |
| HyperCash | 4,0% |
| Qubitica | 7,83% |
| KuCoin Shares | 1,23% |
| ThoreCoin | 1,99% |
| Energi | 4,55% |
| Metaverse ETP | 3,66% |
| GXChain | 6,92% |
| Ardor | 3,1% |
| Insight Chain | 3,43% |
| VestChain | 0,46% |
| Nash Exchange | 5,97% |
And we backtest it:
Let’s look at the Cryptocurrency Analysis results:
Profit – 107.24% Max. Profit Peak – 110.65% Max. Drawdown -29.61% St.Deviation – 32.31%
As you can see with the matrix correlation and efficient frontier, we increase profits by 8.78% and reduce drawdown by 21.12%. And we can remove VestChain from our portfolio in June, because we allocated only 0,46% with efficient frontier
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.
Now let’s go to find best rebalance threshold or period for this portfolio
So we research and find that the 2% threshold rebalance best for this period
Profit – 109.66% Max. Profit Peak – 110.31% Max. Drawdown -29.06% St.Deviation – 31.65%
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.
