How to generate Alpha in the next Crypto bull run to make truly life changing amounts of money.
A thread 🧵
Firstly, this week I shared with you my story of how I made it to 7 figs in the last cycle. Read this to get some perspective of where I am coming from:
Secondly, this week I shared an important thread on how to look out for the triggers that will give us a high degree of confidence that indicate the next bull run is in motion. Study this as well:
Before generating alpha in the bull market, it is critical that we preserve as much capital as possible in the bear market. We need to build as much artillery as possible whilst we plan our attack both in terms of 💰capital and emotional/mental capital.
Right, now we are ready to plan our attack...
Our attack largely comes down to portfolio construction as well as timing and execution. Let's break them both down:
We don't want to be all in one alt as luna proved and conversely we don't want to spread too thin as this can get too hard to manage. We want a mix of high conviction lower risk plays as well as higher risk lower market cap altcoin gems
- Strong network effects
- Utility - Strong narrative - Strong technicals - High relative strength compared to USD, BTC and ETH
and ETH are a solid bedrock, now we need to add a few more core positions using these metrics.
Currently I am looking at BNB and QNT for example to name but a few as ideal candidates. Let's explore why: ...
- Excellent network effects due to binance's meteoric success - Strong utility through Binance
- High relative strength against BTC and Ethereum
- ATH against BTC
- Flipped 21w ema into support against BTC and ETH (see charts below)
- One of the few alts to have flipped the 200d ma into support. Impressive strength - Holding 21w ema as support - Interesting technical confluence from 2020 bull run initiation - Strength against BTC and Ethereum and holding 21w ema as support
Our core positions will take up the highest percentage of our portfolio but it is very important imo to have a sprinkle of higher risk smaller plays. These are the gems that can return 50x even 100x. A 1000 investment can turn into 100,000...
In the last bull run I managed to get MATIC for sub 2 cents that did more than 100x, QNT at sub 10 that did over 30x and AXS below 3 that did 50x. There were more that did rubbish but these 3 winners made a substantial difference to my returns even factoring in the losers.12
How do you find these gems? The key is paying attention to new, innovative growing narratives and trends. My AXS play was a key example. When I realised NFTs Metaverse gaming was becoming one of those trends, it was a no brainer given the excellent network effects and hype.13
TIMING AND EXECUTION
In terms of timing, we need a high degree of confidence that the bear is behind and the bull has begun. Please refer back to my previous thread where I discussed this:
The time to strike is when the market has a reversal on HTF 15/n
In terms of execution, it largely comes down to TA and discipline, @MacnBTC summed it up perfectly here. Please study the tweets below and give the legend a follow:
So to conclude:
1. Preserve and hoard capital during bear market 2. Stay mentally strong and motivated during bear market 3. Look for bull market triggers and plan your attack 4. Ruthlessly execute your attack with precision and discipline
I hope you found this thread useful and win alongside me in the next bull run.
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18/18This post is based on this twitter thread.