An innovative dual-momentum strategy
This portfolio is anchored on the Protective Asset Allocation (PAA) strategy, an innovative dual-momentum model that seamlessly balances the pursuit of superior returns with a robust protection mechanism.
The fundamental premise of this strategy is "momentum" or "price persistence", a phenomenon where rising prices tend to continue rising, and falling prices tend to continue falling. This momentum is pertinent as long as the lookback period is between one month and 6 months. When the lookback period is significantly longer or shorter, a "reversal" occurs.
Our Advanced PAA model is an evolved iteration of our PAA Defensive approach, where we marry the principles of dual momentum and breadth momentum with time-honored investment strategies. At the heart of our model lies a balanced portfolio approach, maintaining 50% of our assets in cash or cash equivalents to cushion against market fluctuations and provide liquidity. The other 50% of the portfolio is actively managed, with a particular focus on substantial cryptocurrency assets like Bitcoin and Ethereum. We meticulously monitor market values and adjust our cryptocurrency holdings to maintain proportionality with these benchmarks. In the event of a market decline, we strategically utilize our liquid assets to recalibrate and bolster our positions in these cryptocurrencies.
©Moonbit is the trading name of Moonbit LLC, a company registered in Hungary, Budapest.
© 2023 Moonbit LLC
