btcJR kelly optimized leverage first bitcoin then stocks
Joined November 2017
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Simon π (Ξ,B,Z) retweeted
Kelly-optimized leverage has arrived.
For those who donβt already know, this is leverage thatβs made to be held for long periods of time.
Developed in 1956, Kelly sizing has been used by professional investors for decades to maximize long-term compounded growth.
Regular investors never had an easy way to access it. Maintaining the leverage target took work, and financing was expensive.
@2FactorFinance tackles both: it manages the leverage target and sources financing from investors who want stable yield instead of from shorts.
Financing costs about 75% less than conventional alternatives, with no liquidations. Built to be held, not traded.
They're backed by Coinbase Ventures and Pantera, and have also received support from Brian Armstrong.
Their Points Program is now live. The top 10 on the final Season 1 leaderboard split 1 BTC, and your Season 1 Marks carry over into Season 2.
Sign up through my link for a points boost: points.2factor.finance/k/rouβ¦
Yeah longterm conviction tho. You have to take the position that itβs a positive drift asset. Hereβs the 11-year backtest at 1.33x
chat.2factor.finance/durableβ¦
Simon π (Ξ,B,Z) retweeted
Early days, but this is what kelly-optimal BTC looks like:
- BTC +11.94%
- cbBTC-Jr + 16.31%
Note the down and sideways periods in the early part of the series. You can just hold through it.
By design it's backtested (for positive drift assets) st β the marginal benefit of holding through rallies >> marginal cost of holding it through down-swings.
@2FactorFinance @base
#notfinancialadvice
Simon π (Ξ,B,Z) retweeted
PSA: There's a lot of noise about stablecoins out there and it's hard to keep up. But decentralized stablecoin problem, the p2p digital-cash problem, the holy-grail crypto problem, has still not been solved.
#StayTuned
@AmpleforthOrg
