ClearGate strategies
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ClearGate
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Strategies
Info about ClearGate strategies on Sommelier protocol
Trend following portfolio in ETH and BTC
Strategy description: The strategy accumulates BTC and ETH with a medium to long term perspective. The rebalancing decision between BTC and ETH is based on following price trends.
- BTC and ETH
- Accounting asset: USDC
- Trend following
- Long only
- Medium to long term
Momentum portfolio in ETH and BTC
Strategy description: The strategy accumulates BTC and ETH with a medium to long term perspective. The rebalancing decision between BTC and ETH is based on price momentum.
- BTC and ETH
- Accounting asset: USDC
- Momentum
- Long only
- Medium to long term
Differences between the strategies
The following information outlines the differences between two distinct BTC and ETH portfolio strategies and may help in choosing between ETH-BTC Trend following portfolio (Trend) and ETH-BTC Momentum portfolio (MoM).
- Trend follows price trends, MoM accumulates assets by their price momentum
- MoM reacts faster to price rises than Trend because identifying price trends with greater accuracy takes more time than observing price movements
- Its faster reaction to price appreciation means the MoM strategy may make more trades that do not end profitably
- MoM always holds some risky assets whereas Trend does not hold any risky assets when no positive or neutral price trend is detected
- Trend provides less volatility and more stability at times when prices are falling
- MoM may outperform Trend in the short run and when prices are rising fast, but Trend should outperform MoM in a longer time frame and offer better risk-return characteristics