Kris’ note: This Friday, we’ll release the first-ever Legacy Research Annual Report Card.
There, we’ll be shining a light on the performances of our 30+ investment advisories (this week we release the first seven results for our entry-level services).
We can’t tell you right now where Larry Benedict’s services will get an A+, A, B, or C… or any other grade. But what we can tell you is this…
Larry is the most impressive trader I’ve ever met…
He ran a hedge fund that booked profits for 20 straight years – including during the 2008–2009 financial meltdown…
If you had traded even just one contract for each of the trades Larry made in his premium trading service since 2020, you could have cleared more than $28,000 in gains…
That doesn’t mean Larry wins on every trade. But going back to January 2020, he has a winning strike rate of 63%.
In a profession where many traders are happy with a 50-55% win rate, that’s more than impressive.
The secret to Larry’s success? Simple. Larry doesn’t think of himself as a trader, he thinks of himself as a risk manager.
It’s the risk management focus that has helped deliver Larry such terrific gains. And now, (for the past year or so, actually) Larry has brought that risk management approach to trading Bitcoin.
In fact, for the three main assets Larry has used to trade the crypto markets, he has an even better win rate than his overall record with 70% of his Bitcoin-related trades recording gains.
So, in today’s essay, Larry Benedict explains for himself how he has traded that market and how you can find out more details about his strategy…
When you’ve been trading as long as I have, you learn a lot about what leads to success.
I’ve worked in the markets since 1984. And I had several formative experiences that eventually helped my hedge fund go 20 years without a losing year.
I learned the ropes as a trader at a firm called Spear, Leeds & Kellogg. At the time, it was the largest specialist trading firm in the world – meaning it traded its own money. We traded almost every stock on the New York Stock Exchange.
That was where I learned one of my most important lessons – risk management.
When I started out in the 1980s, my risk controls were poor, to say the least. My drawdowns were too big for the capital I had.
Yet at Spear, Leeds & Kellogg, what they let you lose on a trade was so tight. It completely changed the way I traded.
I learned that you had to build up your profit and loss with a slow grind. Then once you had profits, you would use them to take bigger risks.
You’d choose a number – whether it was $1,000 a month or $50,000 a month. When you got to that number, you could risk half of those profits on an attractive trade. If it doesn’t work out, you’ve only lost money you already made that month. You don’t eat into your original capital.
It’s these kinds of lessons that have turned me into the trader I am today – and why Jack Schwager featured me in his book, Hedge Fund Market Wizards, among experts like Ray Dalio and Joel Greenblatt.
So when I look at an asset like Bitcoin, I tackle it in a totally different way than most other traders…
Finding the Right Risk Profile
Bitcoin and its fellow cryptocurrencies lack many of the regulations and protections of more developed asset classes.
It’s not a rare news story to hear about a crypto exchange being hacked or losing its customers’ money through fraud. Just look at the collapse of FTX and the trial of Sam Bankman-Fried as a recent example.
Plus, to buy Bitcoin, you typically need to create a special wallet to store your coins.
And if you lose your passwords, you’re sunk. There have even been stories of physical Bitcoin wallets getting thrown out by accident or broken, to the dismay of their owners.
And that’s not even taking into account the volatility Bitcoin has experienced since its inception…
While many people have made lots of money from Bitcoin, many others have lost fortunes to it, especially during the crypto “winters” when it has fallen as much as 75–80%.
So the risk profile just hasn’t been something I’m comfortable with.
It’s why I’ve never bought a single Bitcoin. And I haven’t ever recommended it to my followers either.
Instead, I’ve searched for years, looking for a way to take advantage of Bitcoin where I could manage the risks.
The good news is, that’s just what I’ve uncovered.
I’ve developed a strategy that enables us to have clearly defined risk parameters. And the even better news? The strategy allows us to profit even more than we would by holding Bitcoin over the same time frame.
I call it “Bitcoin skimming.”
And if you’ve ever felt daunted by the risks of Bitcoin investing, make sure to keep reading…
A Better Way to Profit From Bitcoin
As I mentioned at the opening, I’ve learned to tightly control the risk in any trade I do.
That’s where Bitcoin skimming comes in.
You don’t need a crypto wallet or exchange account. Instead, it all takes place in your standard, federally protected brokerage account.
And you don’t have to worry about its sharp swings up and down either.
Even if Bitcoin experiences another drastic plunge, we’ll still be able to draw profits from its moves using this strategy.
(In fact, that’s one of its best features – we can profit whether Bitcoin goes up or down.)
My followers have had the chance to beat Bitcoin’s returns by 6x, 9x, and even as much as 22x. That means pulling in numbers like $4,898 in as little as a week – and sometimes much more.
So if you’d like to hear more about how this is possible, then please plan to attend my upcoming special briefing on Bitcoin skimming. It all takes place on Wednesday, January 24, at 8 p.m. ET.
There, I’ll explain my strategy in detail. And I’ll show you how you can start Bitcoin skimming yourself as soon as the next day.
And there’s one more thing… I’ll also break down how the budding artificial intelligence trend is supercharging the potential of Bitcoin skimming in 2024.
This is an event you won’t want to miss.
So please, join me on January 24 for the whole story.
See you there!
Regards,
Larry Benedict
Editor, Trading With Larry Benedict
Market Data
The S&P 500 closed up 0.2% to end the day at 4,850.4.… the NASDAQ gained 0.3% to close at 15,360.29.
In commodities, West Texas Intermediate crude oil trades at $75.01, up $1.12 from Friday…
Gold is $2,022 per troy ounce, down $8…
And bitcoin is $40,024, down $1,624 since Friday.
More Markets
Today’s top gaining ETFs…
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WisdomTree U.S. SmallCap Earnings Fund (EES) +2.7%
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Invesco Dorsey Wright SmallCap Momentum ETF (DWAS) +2.5%
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Invesco S&P SmallCap 600 Pure Value ETF (RZV) +2.5%
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Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) +2.5%
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Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) +2.4%
Today’s biggest losing ETFs…
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KraneShares MSCI China Clean Technology ETF (KGRN) -4.2%
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Invesco China Technology ETF (CQQQ) -3.8%
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KraneShares MSCI All China Health Care Index ETF (KURE) -3.4%
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Global X MSCI China Consumer Discretionary ETF (CHIQ) -3.4%
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VanEck ChiNext ETF (CNXT) -3%
Mailbag
If you have any questions or comments for our experts here at Legacy Research, we’d love to hear from you.
Write to us at [email protected] and just type “Daily Cut mailbag” in the subject line.
Cheers,
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Kris Sayce
Editor, The Daily Cut