Join Brian from QuantLabs 109 as he explores and breaks down the results of a comprehensive research article titled "Systematic Hedging of the Cryptocurrency Portfolio" from quantopedia.com. In this episode, delve into the intriguing world of cryptocurrencies and discover how a top-five cryptocurrency index portfolio was hedged. Expect the episode to uncover the research methodology, the selected cryptocurrencies, and the unique hedging strategy.
Get some free trading tech book PDFs http://quantlabs.net/booksJoin our Discord for quant trading and programming news https://discord.gg/k29hRUXdk2
Don’t forget to subscribe to my Substack for more trading tips and strategies! Let’s keep learning and growing together. https://quantlabs.substack.com/
Brian also unpacks the report's results, contrasting the returns yielded by the top five coins against Bitcoin. Watch as he raises critical questions about the usefulness of individual coins, citing examples such as Solana and Chainlink. Plus, learn how the research sets up two different periods to study volatility in spread and unpack complex mathematical methods used.
The episode climaxes with a sobering look at the risks involved in this high volatility investment world. Get the scoop on max drawdowns, sharp ratios, the compounded annual per annum of the top five and Bitcoin, and more. Listen as Brian critiques the results, outlining how professionals would view the high risk-to-reward ratio and contrasting it to simpler methods that yield better sharp ratios.
Finally, hear Brian's analysis of the research's conclusion, ranging from the researchers' hedging strategy and its impact on returns, volatility, and drawdowns, to the enduring danger of high drawdowns in the crypto world. Despite the drawn-back returns, Brian highlights the necessity of incorporating hedging strategies in crypto portfolios. Don't miss his final thoughts on the extreme volatility of cryptocurrencies, potential legal issues, and the trade-offs of hedging.
To further explore Brian's analysis and stay updated on his findings, join his Discord community and subscribe to his Substack page and email newsletter. Links are provided in the podcast description. Tune in for an enlightening look at systematic cryptocurrency portfolio hedging.
quantpedia.com/systematic-hedging-of-the-cryptocurrency-portfolio/
Turtle Trading System
Will trilllion dollar coin solve debt celing crisis
Could oil price collapse to 20 dollars?
How will quantum computing impact finance industry?
How does Algo Trading Work?
Seriously what would hedge funds think of technical analysis?
Should retirees invest into cryptocurrency?
9 financial goals before you hit 40
Is bloodbath coming for altcoins
Top hedge fund predicts violent emerging market selloff coming
Ripple and Coinbase could leave USA due to regulation
US Treasury regulate more with nonbank rules even more
EU passes MICA to go after your crypto self custody and hosting
Nine books to read before you turn 30
Best REIT dividend to beat a recession
Why are you missing out on crypto returns of 72% this year
Bitcoin become new hedge as recession looms
Elon Musk Twitter merges with X Corp
Bitcoin broke through 30k
Escape the rate race with wealth block tips
Join Podbean Ads Marketplace and connect with engaged listeners.
Advertise Today
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Aligned Money Show
Dubai Property Podcast
IBKR Podcasts
The Ramsey Show
The Clark Howard Podcast