Cryptocurrency Portfolio Construction

Managing risk in the #crypto markets can mean very different things to different people. From a broader and more classical perspective, Modern Portfolio Theory (MPT) can be used to calculate out your risk-adjusted returns. In this video we look at the Sharpe and Sortino ratios for #BTC, #ETH, #XMR, #XLM, and #LTC (various compositions). We also talk about portfolio weights to minimize volatility. While this is a Monte Carlo based approached to provide an aesthetically pleasing chart, quadratic programming is actually used to solve for the portfolio which maximizes your risk-adjusted returns. Let me know what you think of this analysis on Modern Portfolio Theory and how it relates to #crypto!

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Disclaimer: The information presented within this video is NOT financial advice.

[anriquehuman]

The consistency and content of this channel are remarkable, truly performing at a whole different level than others 👏👏👏

[simonh]

i work with a medium sized bank in germany as a portfoliomanager. its refreshing to see a youtuber use actual economic theory to base his analysis on, instead of "this coin is gonna moon, buy it now, source: trust me bro"
so.. very well done my friend! I advise everybody to take a closer look at the correlation of several big cryptos in order to create an efficient market portfolio.

Especially in Crypto I'd add factors like small minus big and momentum (for example 12-1) for my analysis. If you backtest these strategies, they have a good performance in bullmarkets. However in bearmarkets, it's all about allocation and therefore Markowitz and Sharpe are the way to go. :)

[jimmyjohanossen]

Benjamin Cowen. The ferryman for lost souls in the bear market. Without your consistent advice there would be a lot of headless chickens running around bleeding cash. The majority of crypto investors don't know anything they just listen to crypto gurus. You have proven to now be the only reliable and accurate source of advice for the lay investor. Please understand the weight of this responsibility. There are herds of innocent crypto orphans depending on you, with hands cupped out for advice.

[EinfachNurMaggi]

I actually appreciate these portfolio analyses really much. Thank you for sharing Ben!

[AHoboWithAStick]

Over the last month I have slowly been tweaking my portfolio and my strategy, and overall, I have seen very positive changes in my mood, capital preservation, profits and loss reduction. small changes over time magnify in the markets, so take the time and put In the work. You’ll thank yourself massively in 20 years

[seemamalik]

True, these videos will make sense 6 months later when we'll be closer to next bull market

[wilkruner]

Thanks Ben... I Look forward to coming back to this video multiple times over the next 18 to 24 months

[Emiszapata]

You want to be successful in crypto? Just listen to this man and you'll be fine...as always, thanks for the content Ben 👍🏼

[framed]

thanks lots for your informations! it feels great finding a channel without clickbait, price predictions and fomo. i like hearing ppls opinions on crypto, but there is so much bs on youtube its mindblowing

[twilkpsu]

Dude… this vid was OFF THE HOOK! 🎉🎉🎉. I will investigate your site!

[emdje]

Love this type of analysis. Would love to see Ada mixed into this.

[IXIBEASTIXI]

This one of my favorite analyses that you do. I want to see BTC, ETH, BNB, DOGE

[BeegzBomb]

Really cool idea, Ben. Great work on making this on your site. I love the idea but am very skeptical that historical returns offer any meaningful prediction of future returns. I can somewhat see it for BTC and ETH but really feel it loses its value heavily for any smaller coins. Just my 2 cents.

P.S. shoutout for reminding me of my old finance courses with modern portfolio theory and the efficient Frontier 😂

[ICreatedU]

This video was amazing! First time i catch one of those, surprisingly. Very good selling point for your website as well, what a trove of infos and useful tools it seems to be! More and more tempted to finally subscribe. Keep it up!

[jamesdoecke]

really enjoyed the vid Ben, good to see the graphical representation of the models like that.

[Leety-oj]

Thanks Ben, You are always passing on your knowledge to us and I appreciate it.

[MrCpleht]

Great video…had me rethinking my portfolio. Currently I’m sitting at 45.5% ETH, 17.4% BTC, 16% EGLD, 10%ADA, and the rest ALTCoins. Think I’m taking on a bit too much risk. 😅

[nickrubin]

Nah this is the exciting content we need rn

[vladislavurumov]

Been waiting for that video for a long time. Pretty informative stuff.
Thank you, Ben

[RobinTaylorMusic]

I'm still watching Ben, and I really appreciate you sharing this information.