At Moonbit, we understand the importance of actively adjusting a cryptocurrency portfolio to benefit from bull markets and protect against bear markets. Recognizing that a one-size-fits-all strategy often falls short in the dynamic world of cryptocurrencies, we continually evolve and diversify our approaches, each featuring unique underlying logic to cater to various market conditions and investment objectives.
A prime example of our commitment to providing diverse strategies is our recently launched Protective Asset Allocation (PAA) model. The PAA model is a sophisticated adaptation of the traditional 60/40 stock/bond portfolio. It optimizes the blend of risky and safer assets based on multi-market breadth using dual momentum. This strategy is rooted in "momentum" or "price persistence", wherein rising prices typically continue to rise, and falling prices continue to fall, especially within a lookback period between one month and one year.
Moreover, the PAA strategy incorporates a robust crash protection mechanism. It increases the bond fraction in bear markets using a multi-market breadth indicator. This mechanism provides a strong safety net against significant market downturns, making the PAA strategy an appealing alternative for those seeking to mitigate risk.
To further avoid the overfitting issue that can occur in backtesting, we use a dynamic lookback period and a specialized calculation process. This enhances the robustness and reliability of our strategy, moving beyond merely fitting the data.
We offer three versions of the PAA model, each tailored to different risk levels. To explore more details about our PAA model, please visit our PAA page.
Moonbit portfolios invest in different crypto universes based on risk profile, with the proportion of crypto investments varying according to the level of risk tolerance. We rebalance, add, or remove fund weights and constituents on a quarterly basis in line with our established methodology.
Prioritizing the safety of our customers' assets, we mitigate risk by trading in the USDT market. USDT is a widely accepted stablecoin pegged to the US dollar. This strategy provides stability and reduces exposure to unpredictable market movements.
At Moonbit, we are steadfast in providing our clients with a reliable, data-driven investment approach that maximizes their returns while minimizing their risks. As the market landscape evolves, we adapt to bring our customers innovative, diversified, and robust strategies for their crypto investment journey.