Capital Distribution by Time and Portfolio - Crypto

Hey traders,

In this post, I'll be sharing a simple capital distribution strategy that I use for my crypto portfolio. This strategy is designed to help you allocate your capital across different timeframes and asset types in order to maximize your potential returns while minimizing your risk.

Capital Distribution Strategy

Here's how I break down my capital:

40% - HOLD (Monthly chart): This capital is allocated to long-term investments that I believe have the potential to appreciate significantly over time ( BTCUSD mostly). I typically enter these positions based on a combination of fundamental and technical analysis.
30% - Long Term (Weekly chart): This capital is allocated to assets that I plan to hold for a period of 3 to 6 months. I typically enter these positions based on technical analysis and market sentiment.
20% - Spot (Daily chart): This capital is allocated to short-term trades that I plan to hold for 1 to 2 weeks. I typically enter these positions based on technical analysis and market momentum.
10% - Futures (1-4 hourly chart): This capital is allocated to leveraged trades that I plan to keep for up to 3 days. I use futures trading to amplify my potential returns, but I also recognize that it comes with increased risk. I typically enter these positions based on technical analysis and market volatility.

Choosing Entry Points

As you can see, the entry points for my different capital allocations vary depending on the timeframe and asset type. This is because the risk tolerance and potential rewards associated with each type of trading are different.

HOLD and Long Term: For these long-term investments, I take a more conservative approach and focus on fundamental analysis to identify projects with strong potential. I also use technical analysis to confirm my entry points and manage my risk.
Spot and Futures: For short-term trades, I rely more heavily on technical analysis to identify trading opportunities. I use a variety of indicators and chart patterns to spot potential entry and exit points.

Benefits of this Strategy

This capital distribution strategy has several benefits:

Diversification: It helps to diversify your portfolio across different timeframes and asset types, which can help to reduce your overall risk.
Flexibility: It allows you to adjust your capital allocation based on your market outlook and risk tolerance.
Potential for Growth: It has the potential to generate significant returns over time, as you can benefit from both long-term and short-term trading opportunities.

Disclaimer

Please remember that this is just a general strategy, and it may not be suitable for everyone. It's important to do your own research and understand the risks involved before making any trading decisions.

Additional Tips for New Traders

Start small: Don't risk more money than you can afford to lose.
Learn the basics: Take the time to learn about technical analysis and fundamental analysis.
Practice on a demo account: Before you start trading with real money, practice on a demo account to get a feel for the market.
Manage your risk: Use stop-loss orders and other risk management techniques to protect your capital.
Be patient: Trading is a marathon, not a sprint. Don't get discouraged if you don't see results immediately.

I hope this post has been helpful. If you have any questions, please feel free to leave a comment below.

Happy trading!

alorse

Disclaimer

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