It is no secret that crypto continues to out perform every other investment when you look at the big picture. The all time, monthly, and annual charts continue to reflect this. Many of us want fast money. Our trading strategies in many cases only consider this. I already know from experience my results. Remarkably similar to what I found in some statistics for trading strategies used by hedge fund institutional traders in the last two years. As regulations are allowing institutions to join in the crypto market anyone paying attention has seen the impact this is creating in the crypto space.
Here are the median hedge fund profits in 2019 and 2020 along with the strategies being used.
Strategy 2020 2019
Quantitive Long / Short +72% +17%
Discretionary Long / Short +129% +23%
Discretionary Long Only +294% +10%
Multi-strategy +114% +12%
Market performance has pushed discretionary longs far beyond the performance of every other strategy in 2020. Depending on your personal performance if you're having difficulty making steady profits in crypto going long on projects that you have done your homework on is more than okay. Personally I am highly discriminatory on my choices. Also I am not partial to anything accept profit. I have learned to think for myself and pay attention to several factors that I will be glad to share in another article. I will just say think long-term dynamic moves considering the big picture. Professional traders are litteraly burning the candle on both ends. The crypto market is so small that the market manipulation makes the crypto market behave highly erratic. Remember the most important fact for trading in any market. Profits are made by trading on the markets behavior. We have to adapt if we have our own agendas. No pun intended, in short over the next decade it is easy to speculate on which projects are making it just by paying attention.
Don't underestimate the power of HODLing.