The Momentum Fund
Bitcoin has continued to range-bound trade over the past month and has well and truly lost momentum. As you will know from our last update, BTC crossed below the 100 DMA in mid September but was still sitting above the 200 DMA. This meant that for our last reallocation we reduced our Bitcoin exposure to 50% and the remaining 49% was parked in a stable coin (ignoring the 1% GVT compulsory allocation). The beauty of our strategy has paid off here - the Momentum fund returned -6.25% in the past month, compared to a loss of -12.5% for funds which maintained a full Bitcoin allocation. Using a momentum strategy we have been able to avoid that additional 6.25% loss and preserved our capital.
In late September BTC also dropped below the 200 DMA. At the time of writing BTC is at $7937, under both the 100 DMA ($9829) and 200 DMA ($8812). Therefore, we will pull back to maximal stable coin exposure for the next month (and possibly longer). We know that when Bitcoin decides to fly it often does in spectacular fashion, so if Bitcoin can pick up some momentum in the next thirty days (signalled by a cross above the 200 DMA) then we will reallocate back to some BTC exposure. For now, we are playing defensively.
You can see the full Momentum Fund strategy here.
https://i.redd.it/0z4k1lplrkt31.png
The Community Fund
Our newest fund pools the community's views on which two coins will perform the best over the subsequent thirty days. This month BTC and BNB have been chosen to make up the fund and are doing fairly dismally at the moment, -20%. There is still a third of the month left before the Community Fund's reallocation, so hopefully we can get back into black. Please be sure to vote for which coin you believe will perform the best in the month of November at the link below.
Voting for the November allocation is now open and can be found here.
Growth, Intrepid, Balanced & Defensive Funds
Our risk-staggered funds continue to perform strongly overall, but have had a lacklustre month. Reallocation of all funds has now occurred. Most funds will maintain a decent allocation to Bitcoin and the high market cap alts, while some smaller altcoins will get exposure due to important upcoming events this month such as TRX, NXS, XRP and ZEN.
Thanks to everyone who continues to trust their funds with us, and cheers to another successful month!
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