• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

SanzProphet

DYI Investing, Quant tools and thoughts on the market

  • Start Here
  • Crypto Management
  • About
  • Contact
  • Disclaimer

Revisiting Bitcoin plus Harry Brown’s Permanent Portfolio – 2 Years later @ 40% profit

February 13, 2022 by sanz prophet Leave a Comment

On January 2020 I posted a proposal for combining the Permanent Portfolio with a small 5% allocation to Bitcoin. The main argument was that by risking 5% of the portfolio we could almost double returns.

  • What would happen if you took $5,000 out of your $100,000 permanent portfolio and allocated it to Bitcoin?
  • From 3.6% annual to 15% annual returns?

Fast forward – 2 years later

Two years later I am revisiting the portfolio to see how it did. The rules were very simple and easy for anyone to reproduce. The so called BPP (Bitcoin Permanent Portfolio) allocated:

  • 25% to SPY
  • 25% to TLT
  • 25% to GLD
  • 5% to Bitcoin

Real test forward 2020-2022

The BPP returns from January 1 2020 until January 1 2022 are

Profit : 40.5%
Maximum Drawdown: 13.28%
Sharpe: 1.40

Equity assuming $100,000 starting capital

The traditional Permanent Portfolio for the same period:

Profit : 19.35%
Maximum Drawdown: 10.13%
Sharpe: 0.85

Conclusion

If you allocated just 5% of your Permanent Portfolio tp Bitcoin you would indeed double your returns while keeping a similar risk profile.

Filed Under: Uncategorized

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Keep in touch

Managed Crypto Funds

via TokenSets.com

Categories

Archives

Footer

RSS Portfolios from Logical-Invest.com

  • Bond ETF Rotation Strategy: Diversified hedged portfolio builder from Logical Invest
  • BUG Permanent Portfolio Strategy: Asset rotation models with risk management from Logical Invest
  • Crypto & Leveraged Top 2 Strategy: ETF rotation systems with smart hedging from Logical Invest
  • Dow 30 Strategy: Build your own quantitative models from Logical Invest

Pages

  • About
  • Contact
  • Disclaimer
  • Start Here

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Copyright © 2023 · @SanzProphet.com· Log in