March 25, 2025
This article offers a critical perspective on the use of stop losses in trading. While most literature presents stop losses as essential, the author provides an alternative viewpoint, arguing that in certain situations and trading strategies, stop losses can be counterproductive. The article compares the advantages and disadvantages of stop losses and introduces alternative approaches to risk management, including dynamic position sizing based on forecasts, diversification, and time-oriented exits.
March 16, 2025
Bitcoin dominance indicates Bitcoin’s share of the total cryptocurrency market value, reflecting investor preference between Bitcoin and altcoins. Higher dominance often signals caution, while lower dominance implies increased risk-taking with altcoins. This post explores dominance trends, highlighting Bitcoin’s steady rise since 2022 despite frequent fluctuations. By examining specific examples like BTC versus ATOM and XRP, we illustrate how systematic trend-following strategies effectively manage risks and capitalize on Bitcoin's long-term outperformance. These methods allow traders to avoid significant drawdowns common in simple pair trades and diversify across multiple altcoins, enhancing overall returns even during periods without clear market trends.
This article explores whether holding Bitcoin long-term or actively trading it yields better returns. Many active traders, especially day traders without clear strategies, underperform or lose money due to overreliance on technical analysis. Alternatively, trend-following (momentum trading) provides a structured, less risky option. Using real Bitcoin data from 2017 to 2024, we show how a systematic, volatility-based strategy matches Bitcoin's returns with significantly reduced volatility and drawdowns. Trend-following's simplicity and effective risk management often outperform passive investing, highlighting the benefits of systematic trading approaches in cryptocurrencies.
