I think its a fairly accurate observation to say that Bitcoin related speculation comes with high risk but also high rewards . Even if your buying pullbacks , bitcoin and correlated instruments are more of a gamble than many other trades available but it comes with some pretty good historical rewards .
I think that with the current slice of chaos that is somewhat normalized with BTCUSD , that it would be a good idea to use a beta hedge to protect against downside risk . I think that RIOT is an option worth considering for this , primarily since I think its a laggard but perhaps nonetheless downside risk is not considerably more than other mining names . At this time as you can see there is a pretty large gap between BTC and RIOT and with some other names I checked there is less of a gap.
So , I am going to speculate here that a good trade , to hedge somewhat with, is to short BITCOIN and long RIOT , in equivalent dollar portions . The trade potential could be improved with selling options call premiums I suppose on RIOT but I still need to learn more about the in's and outs of options so I am not one to give advice there.
In summary, the idea is to Short BTCUSD (or BITO eft) and long RIOT , with equal dollar amounts , with the expectation that they will probably normalize somewhat over time . This provides a potential way to hedge with a BTCUSD short . I also want to add that a range is likely for the near future for bitcoin ( I think we are already in one too) . It's also the most probable course of action statistically, after losing the broad bull channel. So scalps would be a good way to profit imo, best to focus on smaller profits until we see a development outside of a range .
Disclaimer : I am pretty new to beta hedging , and still have much to learn but so far I have had two ideas that worked really well . JD/BABA and CXW/GEO . But both of these were more fundamentally based whereas this current one is more based on technicals.
Feel free to agree or disagree , would love to hear from some more experienced beta hedgers out there especially !
I think that with the current slice of chaos that is somewhat normalized with BTCUSD , that it would be a good idea to use a beta hedge to protect against downside risk . I think that RIOT is an option worth considering for this , primarily since I think its a laggard but perhaps nonetheless downside risk is not considerably more than other mining names . At this time as you can see there is a pretty large gap between BTC and RIOT and with some other names I checked there is less of a gap.
So , I am going to speculate here that a good trade , to hedge somewhat with, is to short BITCOIN and long RIOT , in equivalent dollar portions . The trade potential could be improved with selling options call premiums I suppose on RIOT but I still need to learn more about the in's and outs of options so I am not one to give advice there.
In summary, the idea is to Short BTCUSD (or BITO eft) and long RIOT , with equal dollar amounts , with the expectation that they will probably normalize somewhat over time . This provides a potential way to hedge with a BTCUSD short . I also want to add that a range is likely for the near future for bitcoin ( I think we are already in one too) . It's also the most probable course of action statistically, after losing the broad bull channel. So scalps would be a good way to profit imo, best to focus on smaller profits until we see a development outside of a range .
Disclaimer : I am pretty new to beta hedging , and still have much to learn but so far I have had two ideas that worked really well . JD/BABA and CXW/GEO . But both of these were more fundamentally based whereas this current one is more based on technicals.
Feel free to agree or disagree , would love to hear from some more experienced beta hedgers out there especially !
艾力克~
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
艾力克~
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.