{"id":6253,"date":"2022-08-08T14:47:55","date_gmt":"2022-08-08T14:47:55","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=6253"},"modified":"2022-08-08T14:47:56","modified_gmt":"2022-08-08T14:47:56","slug":"bitcoin-stock-to-flow-model-creator-planb-promotes-quant-investing-via-bybit-to-100x-hodl-strategy","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=6253","title":{"rendered":"Bitcoin Stock-to-Flow model creator PlanB promotes &#8216;quant investing&#8217; via ByBit to &#8216;100x&#8217; HODL strategy"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>PlanB, the infamous creator of the stock-to-flow (S2F) model for Bitcoin, has seemingly abandoned the HODL strategy in favor of \u201cquant investing\u201d through ByBit.<\/p>\n<p>In a tweet Friday, he announced a \u201ccopy my trade\u201d partnership with ByBit that \u201coutperforms buy&amp;hold 100x.\u201d An article detailing the strategy was released Monday via PlanB\u2019s website.<\/p>\n<p lang=\"en\" dir=\"ltr\">The article on quant investing is almost ready. It includes a trading rule that outperforms buy&amp;hold 100x. You can copy my trade here (signup + deposit): https:\/\/t.co\/8OI2agrLDD pic.twitter.com\/jgW8AmCjlc<\/p>\n<p>\u2014 PlanB (@100trillionUSD) August 5, 2022<\/p>\n<h2>PlanB and the Stock-to-Flow model<\/h2>\n<p>The S2F creator has amassed a large following online after he created the methodology by which many investors speculate on the future price of Bitcoin.<\/p>\n<p>The model is based on the fixed supply of Bitcoin and its predefined release schedule tied to Bitcoin halvings. According to the stock-to-flow model, the price of Bitcoin will reach close to $1 million by 2026.<\/p>\n<p>Source: lookintobitcoin.com<\/p>\n<p>Historically, the S2F model has been surprisingly accurate; however, during the recent bull run, there has been an increased number of crypto natives who have renounced the theory\u2019s legitimacy.<\/p>\n<p>As far back as June 2021, Ethereum Founder Vitalik Buterin described those who believe in the model as deserving \u201call the mockery they get.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Stock-to-flow is really not looking good now.<\/p>\n<p>I know it&#8217;s impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get. https:\/\/t.co\/hOzHjVb1oq pic.twitter.com\/glMKQDfSbU<\/p>\n<p>\u2014 vitalik.eth (@VitalikButerin) June 21, 2022<\/p>\n<p>The methodology affirms that buying and holding Bitcoin offers the safest method to invest in Bitcoin due to the assumption that it will continue to follow the predicted price in a given timeframe. The price can deviate from the model over a set period, but it will eventually return to the stock-to-flow line due to the fixed supply and distribution of coins.<\/p>\n<p>Criticism of S2F has grown during the bear market as the price of Bitcoin is now well below the model\u2019s prediction and has been since December 2021.<\/p>\n<h2>Quant trading and 100x returns<\/h2>\n<p>PlanB appears to have taken the opportunity to deviate from the \u201cbuy&amp;hold\u201d philosophy to promote a new trading system in conjunction with ByBit. His strategy allegedly will beat a HODL approach by \u201c100x\u201d and is available to copy via ByBit now that his new article on \u201cquant investing\u201d has been released.<\/p>\n<p>He claims he is receiving \u201cthe same reactions as when I published the S2F article in March 2019.\u201d Still, most of the criticism comes from those questioning the move away from HODLing and towards copy trading, whereby PlanB will indeed receive a kickback from ByBit. The copy trading page of ByBit\u2019s website states that principal traders can receive \u201cup to 30% commission and 500 USDT in bonuses.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Funny to see the same reactions as when I published S2F article in Mar2019 when BTC&lt;$4K and I was calling for $55K. &#8220;scammer&#8221; &#8220;demand is not in the model&#8221; &#8220;$55K impossible&#8221;.<br \/>Now people can not imagine 100x B&amp;H outperformance in 10y and hate exchanges. Let&#8217;s wait for the article. https:\/\/t.co\/tjDpqnA2Nx<\/p>\n<p>\u2014 PlanB (@100trillionUSD) August 6, 2022<\/p>\n<p>The quant trading strategy is outlined in full in PlanB\u2019s article entitled Quant Investing 101.\u201d The core philosophy appears to be based on trading the RSI levels of Bitcoin backtested over the past ten years.<\/p>\n<p>The trading rule PlanB is using for the strategy is detailed below.<\/p>\n<p>\u201cIF (RSI was above 90% last six months AND drops below 65%) THEN sell,<br \/>IF (RSI was below 50% last six months AND jumps +2% from the low) THEN buy, ELSE hold.\u201d<\/p>\n<p>For further details on how ITM options are used to optimize returns, see the full article on PlanB\u2019s website.<\/p>\n<h2>Responsible strategies for \u201cinfluencers.\u201d<\/h2>\n<p>Hodlonaut, the author of the Bitcoin Zine, Citadel21, tweeted their dismay at the concept of PlanB partnering with what they call a \u201cleverage shitcoin casino\u201d and reneging on \u201cbuy and hold.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Wait, am I understanding this correctly? PlanB is telling people to sign up with a leverage shitcoin casino so they can copy his trades and get 100x more btc than if they just buy and hold?<\/p>\n<p>I must be misunderstanding something, right?<\/p>\n<p>Right?<\/p>\n<p>\u2014 hodlonaut \ud83c\udf2e\u26a1\ud83d\udd11 \ud83d\udc1d (@hodlonaut) August 7, 2022<\/p>\n<p>Cory Kilppsten of Swan Bitcoin, one of the first to identify issues at Celsius, went as far as to call PlanB a \u201cscammer.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">PlanBrandolini @100trillionusd is such a charlatan scumbag. What an absolute joke. pic.twitter.com\/9sbMgakoQ1<\/p>\n<p>\u2014 Cory Klippsten (@coryklippsten) August 6, 2022<\/p>\n<p>Crypto trader, Eric Wall, extended the sentiment that PlanB is no longer relevant within the industry, claiming \u201cBitcoin maxis did not defend this charlatan.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Thankfully Bitcoin maxis did not defend this charlatan\u2026 Saifedean, Adam Back, Caitlin Long, Vijay Boyapati, Pierre Rochard, Bitstein, Preston Pysh &amp; a bunch of others of the Swan-advisors, plus almost all Bitcoin podcasts were an irrelevant minority in the grand scheme of things<\/p>\n<p>\u2014 Eric Wall (@ercwl) August 7, 2022<\/p>\n<p>Further, PlanB\u2019s article on quant investing raises an interesting problem as it states that<\/p>\n<p>\u201cnothing in this article is financial advice. All content is for informational and educational purposes only.\u201d<\/p>\n<p>However, the article has been identified as a precursor to his copy trading strategy on ByBit. So, while PlanB may be stating that he is not giving investment advice, he is then promoting users to follow this strategy by copying his \u201cquant investing\u201d trades.<\/p>\n<p>PlanB claims to be offering the information on his trades for free on Twitter, allowing for a \u201cDIY\u201d option. Further, he confirms that he is trading only 10% of his portfolio \u201cmainly because of credit risk.\u201d<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/bitcoin-stock-to-flow-model-creator-planb-promotes-quant-investing-via-bybit-to-100x-hodl-strategy\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PlanB, the infamous creator of the stock-to-flow (S2F) model for Bitcoin, has seemingly abandoned the HODL strategy in favor of \u201cquant investing\u201d through ByBit. In a tweet Friday, he announced a \u201ccopy my trade\u201d partnership with ByBit that \u201coutperforms buy&amp;hold 100x.\u201d An article detailing the strategy was released Monday via PlanB\u2019s website. The article on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6254,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-6253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6253"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6253\/revisions"}],"predecessor-version":[{"id":6255,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6253\/revisions\/6255"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/6254"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}