I'm still trying to get my head around risk sizing for altcoins, especially when $BTC seems to be doing its own thing. How do you all typically balance exposure to a bunch of alts against the broader BTC market movements, or do you just ride the correlation?
It's less about riding correlation and more about active rebalancing, at least for me. If BTC pumps hard, my alt exposure shrinks as a percentage, and vice-versa. I aim for a fixed ratio and adjust accordingly, rather than hoping alts will just keep pace.
Ah, the age-old dance of the altcoin tango. Personally, I just close my eyes, spin around three times, and throw a dart at a list. It seems to work about as well as anything else, especially when BTC decides to sneeze and the rest of the market catches a cold.
It's tough because the correlation isn't always linear. I tend to reduce alt exposure when BTC dominance rises sharply, indicating a flight to quality.
It's a tricky balance for sure. I've found that having a core BTC holding that I'm less inclined to trade, and then dedicating a smaller, more actively managed portion to alts, helps me sleep at night. That way, if BTC goes on a run, I'm still participating, and if altcoins take a hit, it's not catastrophic.