BTC plummeted 8%, I’m hiding in neutral during the bear market～
BTC fell 8% in a single day, I don’t know how many people were forced to liquidate their positions, but my neutral strategy is approaching a new high again… Every day in the group, I watch others get liquidated while feeling grateful that I chose the neutral strategy haha.
What is the neutral strategy? Its core lies in capturing relative value through algorithms: simultaneously going long and short on altcoins, using futures to hedge against market volatility.
During the bear market in 2022, the annualized volatility of the neutral strategy was only 1/5 of BTC's, with the maximum drawdown controlled within 8%. This characteristic of being "unrelated to bulls and bears" and “related to volatility” is the reason it can traverse cycles.
Historically, there have been hedge funds that used the strategy of "buying Bitcoin and selling Ethereum," relying on Ethereum's sharper decline to make profits, achieving an annualized return of 80%…
Now this strategy has been upgraded and iterated countless times, evolving from simple arbitrage to using AI to assess the performance of different coins, turning into an all-weather profit machine. Simply put: the crazier the market, the more the neutral strategy can showcase its operations, using mathematical formulas to beat emotional trading.
