I’d love to have some BTC in a Roth. It’s difficult to custody alternative assets in a Roth. It all has to be done just exactly right and it’s certainly not set up for trading. Hedgeye has a new BTC trading product which provides buy and sell signals on BTC, GBTC the Grayscale BTC Trust and MSTR which is another stock that owns a LOT of BTC.
GBTC is my experimental candidate. I seems to track BTC directionally with about 60 to 75% of the volatility. Today BTC is up 14% and GBTC is up 9%. The advantage of GBTC is I CAN own it in a Roth, so I can buy and sell without tax consequence and trading is free at Fido. The Hedgeye product gives me enough information to judge when to trade. The product gives a daily risk range channel which allows you to make outcome weighted bets with a high probability of success. The bets allow for when selling has high probability of payoff and when buying has a high probability of payoff.
The result is a tool to compound your money. Say the top end of the BTC range is 40K and the bottom is 33k. If BTC hits 33k BUY as BTC approaches 40k start selling 25 bp at a time. So if I had 100K invested I would sell 25bp of each incremental move up maybe starting at 37K. 33K to 40K is a 21% move so I might pull out 2 K on the way to 40K at 40K (or what ever the new top of the range is) I would be all out and wait for the next bottom end to be reached. This time I may have 107K (100K + 7K profit) to invest and so my investment compounds with every cycle and I’m constantly booking profits preparing for buying at the next low. It’s really only worth doing this in a Roth. Completely different approach that buy and hold and hope.