PlanB, the creator of the stock-to-flow S 2 F model for Bitcoins, has seemingly abandoned the HODL strategy in favor of quant investing through ByBit.
He announced on Friday that he has a copy my trade partnership with ByBit that beats buy&hold 100 x. An article about the strategy was published Monday on PlanB's website.
The methodology by which many investors speculate about the future price of Bitcoin has been created by the S 2 F creator.
The model is based on a fixed supply ofBitcoin and its predefined release schedule tied to Bitcoin halvings. The price ofBitcoin will reach close to $1 million by the year 2026, according to the stock-to-flow model.
The S 2 F model has been surprisingly accurate for a long time, but there have been an increase in the number of crypto natives who have renounced the theory's legitimacy during the recent bull run.
As far back as June 2021, the founder ofEthereum, Vitalik Buterin, described those who believe in the model as deserving all the mockery they get. The methodology believes that buying and holdingBitcoin is the safest method to invest inBitcoin because of the assumption that it will continue to follow the predicted price in a given timeframe. The price can change over the course of a set period, but it will eventually return to the stock-to-flow line due to the fixed supply and distribution of coins.
Since December 2021, the price ofBitcoin is well below the Model's prediction and has been since December 2021, which has grown Criticism of S 2 F during the bear market.
PlanB has taken the opportunity to promote a new trading system in conjunction with ByBit, and appears to have taken the opportunity to deviate from the buy&hold philosophy. He claims that he is getting the same reactions as when I published the S 2 F article in March 2019. Most of the criticism came from those who question the move away from HODLing and towards copy trading, whereby PlanB will get a kickback from ByBit. The copy trading page of ByBit states that principal traders can receive up to 30% commission and 500 USDT in bonuses. The article entitled Quant Investing 101 explains the strategy for quant trading. The core philosophy is to be based on trading the RSI levels ofBitcoin backtested over the past ten years.
The trading rule PlanB is used for the strategy.
For more information on how ITM options are used to optimize returns, see the full article on PlanB's website.
Hodlonaut, the author of the Bitcoins Zine, tweeted their dismay at the idea of PlanB partnering with a leverage shit coin casino and reneging on buy and hold. Cory Kilppsten of Swan Bitcoins, one of the first to identify issues at Celsius, went as far as to call PlanB a scammer. Eric Wall, a trader, extended the sentiment that PlanB is no longer relevant within the industry, claiming thatBitcoin maxis did not defend this charlatan. Further, PlanB's article on Quantum investing raises an interesting problem as it states that
The article has been identified as a precursor to his copy trading strategy on ByBit. PlanB may be saying that he is not giving investment advice, but he is promoting users to follow this strategy by copying his quant investing trades.
PlanB claims to be able to offer the information on his trades for free on Twitter, allowing for a DIY option. He stated that he is trading only 10% of his portfolio because of credit risk.