Which trading game should you play? (Part 3)

For the last couple of days I've been talking about the two types of trading games you can play... Risk premia games and Alpha games. If you haven't been following along, go back and review my last two messages... Today we're going to answer the question, which game should you play? What might not be obvious is how very different these games are... To simplify it: Every trading edge that actually works is one of two things: Thing 1 – A pricing inefficiency (the market got the price wrong and you help to close that inefficiency). Thing 2 – A premium for taking on some kind of risk that other traders don't want. One example of a price inefficiency is a listing alert brought to us by the NewsQuakes™ indicator from the Markets Pro dashboard. You've noticed that the price should be higher, because an exchange listing just got announced. Great opportunity. But the opportunity which is attractive to you, is also attractive to others... Like the $20 bill you see on the ground in front of the local bar, right? So it's competitive, time sensitive, and every trade is a unique snowflake. Not as much high-risk-high-reward (these are low risk trades) as  high-effort-high-reward! And they don't always work equally well.  Sometimes the market is in a phase where the best news can't make it pump. So capturing pricing inefficiencies, what's called Alpha, is hard and competitive but extremely profitable. What makes sense though, is to have a solid base of the other type of trading to make certain that you show a profit at the end of every month. To make certain that you don't get wrecked when a bull market ends, the music stops, and your altcoin bags end up 95% down. Which brings me to the second way to make money. Earning Risk Premiums The clue is in the name…risk.  You get paid for taking on risk. The advantage is that risk premia harvesting is what the multi-trillion dollar asset allocation industry is based on. It's easier, by far, than the first type of strategy, and more consistent and reliable. We can take proven approaches from the traditional finance markets and typically they work 3-5X better than on stocks. Because crypto is riskier, right?  So a rational investor would want a higher return for investing in crypto than stocks, right? The Risk Premium which makes the most sense for crypto is Trend Following. And in addition to the bigger, faster homeruns members of Markets Pro are seeing, I'd like to show you how to earn a consistent and reliable 100% per year on average without taking any of the downside risk. How it works is we take a position in every coin that's liquid enough. Next, we measure trend strength.  If the trend is strong, we buy a lot. If the trend is weak we buy a little. If the trend is down we short it. No opinions.  No fundamental analysis. Just the facts. So for example, today we are long the coins that are going up, and short the coins that are going down. This works amazingly well! How well, you ask? The Benchmark (Yellow Line) is Bitcoin, and the Strategy (Blue Line) is the performance of the Trend Following strategy and rules I just laid out. The best part is, when a bull market ends you get to keep all your gains. If the market starts crashing, you'll be short. Which saves a lot of heartache and headaches in the long run. It's time for some transparency here... No room for anything else between us traders. Every time I've made money in a crypto bull market... I end up giving half of it back at the end. Which is quite depressing... And is the exact reason (and timing) of me introducing this topic to you in the first place :-)  As a member of the Markets Pro community, I want you to be positioned for a bigger piece of the pie in the upcoming bull market. In order to do that, you'll need to be equipped with what we're referring to as the "1-2 Punch" of crypto investing and trading platforms. You already know about (and may already be using) Markets Pro. Simply put, having access to this "1-2 Punch" is going to ensure you don't just profit during the upcoming bull market, you're able to keep what you make. If you've been enjoying this series and are curious about exactly what it is we're getting ready to unveil, keep an eye on your inbox later this afternoon for a special invitation.  Because this Wednesday along with a very special guest, our Community Manager Max Kuivenhoven and myself are hosting a very special event... And if you haven't thought about crypto investing and trading the way I've been explaining it over the last couple of days, it's going to be pretty earth-shattering stuff! Stay tuned, Russell DeCorte Director  Markets Pro © 2023 COINTELEGRAPH MARKETS PRO COINFIDENTIAL. Copyright © 2023 Cointelegraph Markets Pro, All rights reserved. You are receiving this email because you opted in at our website. 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