Skip to Content
V2 BWC Modified Bitcoin Strategy | Dereck Nielsen
Today’s Change

A symphony is an automated trading strategy — Learn more about symphonies here

About

Rules-based Bitcoin strategy. Own BITO in uptrends, step aside on sharp drops, and short briefly when it’s too hot. In weaker markets, rotate into the strongest BTC proxies (miners/spot funds) or hold T‑bills. Rebalanced daily; heavy risk controls.
NutHow it works
- Uses BITO (a Bitcoin ETF) as the main “compass.” - If BITO is in a long-term uptrend (price above its 200‑day average), it usually owns BITO, but: • If short-term drop > ~5% in 5 days, it parks in T‑bills (SHV). • If momentum is extremely hot (RSI > ~75), it briefly flips to the inverse ETF (BITI). - If not in an uptrend, it may: • Buy BITO only when very oversold (RSI very low), or • Rotate into the 1–2 strongest Bitcoin‑related names (miners like MARA/RIOT/CLSK or spot funds like GBTC/BITX) based on 3–10 day performance, with extra checks; if a pick fails, it holds T‑bills (BIL/SHV). - Daily rebalance.
CheckmarkValue prop
Adds tactical Bitcoin exposure with rules-based risk controls and cash hedges to diversify a S&P core. In out-of-sample tests it showed modest risk-adjusted results but higher drawdowns than SPY—best as crypto-tilt diversification, not a replacement.
1M
3M
6M
YTD
1Y
3Y
Max
Performance
Compared to selected benchmarks
Alpha
Beta
R2
R
0.16
0.82
0.08
0.29
Performance Metrics
Cumulative Return
Annualized Return
Trailing 1M Return
Trailing 3M Return
Sharpe Ratio
52.54%
21.18%
0.19%
3.76%
1.28
Initial Investment
$10,000.00
Final Value
$16,505.99
Regulatory Fees
$86.53
Total Slippage
$415.01
Invest in this strategy
OOS Start Date
Sep 10, 2024
Trading Setting
Daily
Type
Stocks
Category
Crypto, bitcoin, trend following, momentum rotation, tactical allocation, risk management, daily rebalanced
Tickers in this symphonyThis symphony trades 0 assets in total
Ticker
Type