Hedging my bets (& building new sites)

Going both long and short, plus building a new site on an expired domain

Hey there 👋

Over the last week, I’ve added a new #layer0s channel in the community to discuss crypto ecosystems such as Polkadot, where MrSomtam has been delivering great alpha about parachains. And the #poker channel has been going off thanks to duffx.

But this week I’ve been mainly trading and going back to basics…

[Remember, every heading is a channel in the Discord - come join over 140 of us]

#trading

I can’t sell short on FTX here in the UK as am not a professional trader, but can on Mirror protocol on Terra.

So over the last week, when things were looking very bearish (just when BTC was entering the 50/200 MA death cross), I sold Galaxy Digital Holdings using the short farm:

I got the idea for this from 1) my friend Ruaan and 2) the All-In Podcast, hosted by J Cal, where Chamath was explaining that the best spread ctrade over the next year or so is to short traditional payment companies (Visa / Mastercard) and go long on defi protocols:

patey.eth 🦁@RichardPatey

Dear @mirror_protocol please add Visa & MasterCard to your platform so I can place the hedge @chamath recommended on the @theallinpod and be short $V & $MA and long $LUNA

2:11 PM · Jan 10, 2022

And I placed my second long trade on DOT/USD on FTX yesterday.

I entered with the RSI trending up in the buy zone at $24.482 USD (blue arrow below) with a trailing stop of -$1.5 which gave a potential $31 upside back to ATH vs $1.5 max loss for a 20x risk to reward. Once the trade moved in my favor I took out the trailing stop and placed a stop loss at $1 over my entry meaning the worst that could happen would be 4% profit.

However, the price dropped to just a few cents under my stop which triggered (see the red arrow above) and kicked me out at $25.482 before now shooting up to its current $27+.

I made 4%, and that’s now two for two profitable trades (first one last week).

But if I’d put my stop just slightly lower, or even at break-even, I’d currently be up over 10% - doh!

No more penny-wise and pound-foolish Patey - lesson learned.

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#contentsites

I’ve just done a deal with Odys, the marketplace for premium aged domains. I’m getting a domain that recently dropped to do a case study on over the next few months.

The domain in question was first registered almost two decades ago and was a known site in the space with a clean history and is still indexed in Google. (Odys also vet for trademarks).

I’ll be revealing the niche in next week’s newsletter and will hopefully have started adding content to it by then.

I’m aiming at publishing at least 200 pages to the site by the end of this month using AI content provider Content At Scale created by Justin McGill, as well as utilizing Jarvis.ai boss mode and others.

The biggest site in the SERPs for this niche has over 2000 pages and I’ll aim to beat them with topical authority as Matt Diggity talks about in this recent video below:

As this will be almost all info content, I’ll just be monetizing with ads with a handful of affiliate links thrown in.

Once I’ve maxed out content, and traffic growth starts slowing, I’ll list it on Empire Flippers or Flippa and rinse, repeat.

Ok that’s it for this week.

Cheers!

Richard

Nothing in this email is financial advice and I'm not a 'professional investment adviser'. I send weekly updates on what I'm doing personally - consider it 'informational' and 'for entertainment purposes only’ (as the podcasts say).