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~
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
艾力克~
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.