Cryptos have in general picked up towards the end of July and overall my CTA portfolio gained $107.9 in July.
Here are the stats for the first five months of the review:
Acquisition Cost: $1160.14 (Completed on February 11th, 2021)
Starting Bank for Review: $1273.27 (March 1st, 2021)
Minimum Bank: $989.26 (June 22nd, 2021)
Maximum Bank: $2197.55 (May 10th, 2021)
Number of Profitable Months: 3/5
Current Bank: $1247.17 (July 31st, 2021)
Profit/Loss Since March 1st: –$26.10
Profit/Loss Since Acquisition: $87.03
Return on Bank since March 1st: –2.0%
Return on Bank since Acquisition: 7.5 %
The graph below shows the daily value of the portfolio from March 1st through July 31st, 2021:
The values each day are Noon amounts.
Because the market is neither bull nor bear at the moment, CTA has changed the distribution of cash and crypto coins in its official portfolio, which I am following as close as possible. When I set up the portfolio it was all crypto coins, now it is about 45% cash (held as stable coins) and 55% crypto coins. This cash is available for future utilization depending on the direction of the market. In addition one of the crypto coins is now being staked. There are currently 16 crypto coins in the portfolio including the major two: Bitcoin and Ethereum.
Stable coins are cryptocurrencies where the price is designed to be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals). In my case, the stable coins are pegged to dollars.
Staking involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking cryptocurrency to receive rewards.
One can of course sell one’s portfolio at any time, but I will be following the official portfolio and playing the market cycle most likely for at least a year.