An innovative dual-momentum strategy
These portfolios are anchored on the Protective Asset Allocation (PAA) strategy, an innovative dual-momentum model that seamlessly balances the pursuit of superior returns with a robust crash 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.
The PAA strategy also integrates a robust crash protection mechanism, allocating up to 100% in Tether (USDT). This crash protection mechanism provides a formidable safety net against substantial market downturns.
Our portfolios concentrate on Bitcoin and Ethereum, two cryptocurrencies that have exhibited robust asset class characteristics. They have consistently demonstrated an upward price trajectory over time, positioning them as effective inflation hedges. This characteristic is critical for the success of the PAA strategy, which thrives when the invested assets display a propensity for price appreciation over time. By selecting this strategy, investors can effectively participate in this potential upside while being shielded from severe market downturns.