Our strategy experienced large draw down. While we expect strategy to be volatile, these forced liquidations pushed our portfolio a lot more down than anticipated. This is due to a lot more leverage in the system.
To counter large draw downs, we added PAXG and USDC which will be in the portfolio all the time and we do regular rebalances. Meaning, we take profits regularly and in crashes buy the dips. This should be effective even in bear markets.
If we hold 50% of portfolio in gold and cash, max draw down for the portfolio is -45% assuming crypto crashes -90%. Meaning, we can survive even the largest crypto winters. The upside always takes cares of itself.
We will re assess how much of portfolio to hold in cash and gold all the time.