Based16z Crypto Risk Management
Based16z reveals he's been profitable every year in crypto with a 25% to 30% win rate and keeps 70% of his liquid book in an account he can't touch Based16z: “Historically, I've been profitable every year in crypto and my win rate has always been around like 25% to 30% just because of the asymmetry that exists here” Threadguy: “How much are you risking? Like what percent do you draw down on a convicted trade like Snapchat?” Based16z: “SNAP was actually way too much. SNAP, I probably drew down 10%” Threadguy: “Full port?” Based16z: “Yeah. I've actually in the last eight months I moved like 70% of my liquid book into an account that I can't touch” “Because I think at that time I would just be like 1.5x net worth leverage SNAP which is how I used to trade things on a smaller book and like I was cool with that” “I’ve never had a full blow-up but I've definitely had like 50-60% portfolio drawdowns in smaller size”
Transcript (en)
historically like i've been profitable every year in crypto um and my win rate has always been around like 25 to 30 percent uh just because of the asymmetry that exists here so almost always wrong how much are you risking like what percent do you draw down on a convicted trade like snapchat uh snap was actually way too much that i probably around 10 because i had full port yeah yeah yeah which is way not sure i'm doing i've actually in the last eight months i um i moved like 70% of my liquid book into an account that I can't touch. Because I think at that time, like I would just be like 1.5x, you know, net worth leverage snap, which is how I used to trade things on a smaller book. And like, I was cool with that. And taking, you know, like I've had, I've had 60%. I've never had a full blow up, but I've definitely had like 50, 60% portfolio drawdowns in smaller size.
