The number of cryptocurrency investors is increasing day by day. However, this naturally comes with risks. Volatility in volatile markets can be a nuisance, especially for novice investors who do not know what they are doing. luckily ICRYPEXModel Portfolio with this solves the problem.
What is the ICRYPEX Model Portfolio?
A model portfolio refers to a group of assets created with specific mathematical models of multiple assets. The main purpose of model portfolios is to guide the investor in allocating his risk. ICRYPEX Model Portfolio with the main purpose;
To present a weighted sample portfolio basket, based on the principles of Markowitz Portfolio Theory, to investors who have difficulties in creating a portfolio basket and distributing risk. The features and calculation principles of the weighted portfolio are included in the Model Portfolio Performance Report, which is shared with the investors on a weekly basis.
We talked about the Icrypex system, which tells you which crypto money saves!
What is Icrypex Portfolio Management that informs you about current data and projects and guides you to make the right investment?
What are the advantages?
Since the ICModel Portfolio system is weighted based only on the data and the principles of the model, it is independent of the market expectations of the people.
The main purpose of the Markowitz Portfolio Theory is to maximize return while minimizing risk. ”Model Portfolio” It aims to assist in hedging risk in volatile market conditions.
Features of the Model Portfolio
The amount that the investor will start trading in the model portfolio is the tether balance obtained by converting the deposited TL amount into tether based on the Tether opening price of that day.
Assets included in the model portfolio are limited to groups categorized as Defi, DEX, Gaming, Ledger, MEME, Metaverse, NFT, Oracle, Layer 1, WEB3, and others, according to similar usage purposes.
While calculating the benchmark of the model portfolio, a ratio was obtained by dividing the total market values ββof each of the coins traded on the ICRYPEX Exchange by the total market value of the global market. Since the total weight is below 100% as a result of not being included in the weighting of the products that are not traded on the ICRYPEX Exchange, the obtained rates have been normalized to 100%.
In the model portfolio, the entire amount of the investor’s portfolio is distributed taking into account the weights obtained from the model, and no money is held in cash or tether.
Calculating the standard deviation of the portfolio
In portfolio management, risk is measured by “standard deviation”. The standard deviation shows how far the historical price data of an asset deviates from the expected return on that asset.
Standard deviation in the model;
Calculated by the formula ππ = π€1 2π1 2 + π€2 2π2 2 + 2π€1π€2πΆππ£1,2.
Ο: variance of assets,
w: The weight of the assets in the portfolio,
Cov: It expresses the covariance of the assets.
Weighting the portfolio
Optimal weighting for risky portfolios is obtained by maximizing the sharpe ratio. The Sharpe Ratio is obtained by dividing the difference between the portfolio’s average return and the risk-free rate by the absolute portfolio risk. The total risk of the portfolio is measured by the standard deviation.
While weighting the model portfolio, first the Sharpe ratio was maximized and then some constraints were applied.
These constraints are;
BTC/USDT β₯ 0.10 ETH/USDT β₯ 0.30 In weighting altcoins with a lower market cap compared to BTC/USDT and ETH/USDT, with a maximum weighting ratio of 0.20 for each and a combined weight not exceeding 0.60 has been limited.
ICRYPEX Model Portfolio is coming soon!
In the near future, ICRYPEX users will be able to access ICRYPEX Model Portfolio with a single click through the mobile application. If you want to take advantage of the ICRYPEX Model Portfolio, download the ICRYPEX Crypto Exchange mobile application now and complete your membership transactions. Click here to download the ICRYPEX mobile app.