HackerNoon.com
Published in

HackerNoon.com

Taking the speculation out of crypto, one study at a time.

Evaluating Crypto Portfolio Performance Based On Asset Market Capitalization

The Setup

Performance

Large Market Cap

These values represent the total holdings of the median large market cap portfolio after one year. The top left value representing a portfolio which performed no trades over the course of a single year and contained 2 assets. The bottom right represents a portfolio of 10 assets which were rebalanced every 1 hour. Each cell represents exactly 1,000 backtests which were combined to calculate the median.

Rebalancing a large market cap crypto portfolio resulted in up to a 1140% return over the last year.

Mid Market Cap

These values represent the total holdings of the median mid market cap portfolio after one year. The top left value representing a portfolio which performed no trades over the course of a single year and contained 2 assets. The bottom right represents a portfolio of 10 assets which were rebalanced every 1 hour. Each cell represents exactly 1,000 backtests which were combined to calculate the median.

Rebalancing a mid market cap crypto portfolio resulted in up to a 3980% return over the last year.

Small Market Cap

These values represent the total holdings of the median small market cap portfolio after one year. The top left value representing a portfolio which performed no trades over the course of a single year and contained 2 assets. The bottom right represents a portfolio of 10 assets which were rebalanced every 1 hour. Each cell represents exactly 1,000 backtests which were combined to calculate the median.

Rebalancing a small market cap crypto portfolio resulted in up to a 2820% return over the last year.

Combined (Any Market Cap)

These values represent the total holdings of the median portfolio after one year. The top left value representing a portfolio which performed no trades over the course of a single year and contained 2 assets. The bottom right represents a portfolio of 10 assets which were rebalanced every 1 hour. Each cell represents exactly 1,000 backtests which were combined to calculate the median.

Rebalancing a crypto portfolio resulted in up to a 2340% return over the last year.

Conclusions & Interpretations

Mid market cap portfolios had the highest returns over a 1 year period.

HODLing small market cap portfolios resulted in the worst returns over a 1 year period.

Large market cap portfolios had the worst results when rebalanced every hour over a 1 year period.

Rebalancing with Shrimpy

Additional Reading

--

--

Elijah McClain, George Floyd, Eric Garner, Breonna Taylor, Ahmaud Arbery, Michael Brown, Oscar Grant, Atatiana Jefferson, Tamir Rice, Bettie Jones, Botham Jean

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
ShrimpyApp

Shrimpy is a crypto exchange trading bot for portfolio management, indexing the market, rebalancing, and strategy backtesting. Join now at shrimpy.io.