The Top5 Daily Strategy allows you to rotate your money into the winning horse through a data-driven, repeatable process.
QCL aims to provide you with the data necessary to create your own strategies from the relative strength matrices we provide. To help get you started, we have a ready-made strategy for you to follow and use as an example: the Top5 Daily Strategy.
The Top5 Daily Strategy works by periodically rotating funds into the top 5 highest-ranked assets within a given matrix. This allows you to rotate funds into the strongest assets and not get left behind if a particular asset outperforms the rest. With daily data updates, the strategy enables a nimble reallocation of funds to adapt to the ever-changing market leaderboard.
The Top5 Daily Strategy has demonstrated proven market outperformance.
The "Top 50 Crypto by Market Cap" matrix was the first matrix added to the QCL database. We have been collecting live data in our database since November 1st, 2023. Using an initial capital of $10,000 USD since November 1st, 2023, the Top5 Daily Strategy has outperformed BTC, SPY, and BuyAndHold. As of January 11th, 2024, BTC had a return of 34.67%, SPY had a return of 13.94%, BuyAndHold had a return of 66.22%, and the Top5 Daily Strategy had a return of 121.98%.
Executing the Top5 Daily Strategy: A Simple Guide to Allocating and Rotating Your Investment.
First, determine the amount of capital allocated to the Top5 strategy for a particular matrix. In this example, let's choose $10,000 USD as the initial capital for the 'Top 50 Crypto by Market Cap' matrix. Divide the initial capital ($10,000) by the number of assets to invest in (5), resulting in $2,000 USD per asset to begin with.
The Top5 strategy works by periodically rotating funds into the top 5 highest-ranked assets within a given matrix. Assume today is November 1st, 2023; as per the screenshot below, the top 5 ranked assets on November 1st, 2023, were SOL, APT, LINK, GRT, and ICP. Thus, you would invest $2,000 USD in each of these 5 assets.
The next day, on November 2nd, 2023, the matrix is updated with the new Top5 assets (as per the screenshot below). You can see that 4/5 assets remain the same as the previous day, except ICP is marked as a 'sell' and NEAR as a 'buy'. In this scenario, you would sell all ICP and replace those funds with NEAR. As per the screenshot below, on November 2nd, 2023, there was a balance of ICP worth $2,064.94; you would then sell that and buy $2,064.94 worth of NEAR.
On November 10th, 2023, as per the screenshot below, you can see that two assets are on a 'sell' (IMX and GRT), and two assets are on a 'buy' (KAS and CRO). In this situation, you would sum up the USD value of the assets on a 'sell' ($1,929.7 + $2,363.19 = $4,292.89) and divide it by the number of assets on a 'buy' (2); $4,292.89/2 = $2,146.45, which would be the amount invested in the two new assets, KAS and CRO.
