Model Description

 

Crypto Comrades is a unique model allowing access to the cryptocurrency markets without holding the currencies directly.

It invests in established companies that are developing processes or products for the cryptocurrency market.  It also invests in a Bitcoin Trust ETF.  As more companies enter the market, the model will adjust to include those companies.

The model uses our rules-based process to filter and rank the investments, choosing only the top-ranked investments each period.

The Crypto Comrades model is rebalanced twice a month and includes our downside risk protector©

Ranking

The model’s dynamic allocation ranks market opportunities based on Relative Return, Absolute Return, and Volatility.  Monthly, mathematical scoring ranks ETFs for each investment model and the top-ranking positions are allocated to meet current market conditions.

As ETFs move in and out of favor, the model rotates its market exposure, alternating its positions based on their mathematical ranking relative to the prior month’s allocation and each other.

Although not anticipated, in some market conditions, it is possible that cash and fixed income positions can be the highest mathematical ranking within each model.

What is Drawdown?

 

Drawdown is the measure from the highest high to the lowest low or peak-to-trough during a specific time period.  It is an important measurement of risk.  A larger drawdown requires a more significant increase in the portfolio to recover.

 

 

 

Volatility measures the change in price of an investment.  The higher the volatility, the higher the difference between the high and the low of an investment’s price.