The original DOTS strategy based on buying 4 stocks in autumn and selling them in spring
can be improved by adding cryptocurrency like bitcoin to the portfolio.
Here is the improved performance:
![[PERFORMANCE CHART]](/images/dotsC_perf2023.gif "DOTS+C vs S&P500 buy and hold")
The average annual gain is +28.6%.
Performance table of this improved strategy:
| Year | Profit | Portfolio |
|---|---|---|
| 2024 | +16.9% unrealized |
No stocks (85% cash)*
Oct 16, 2023 -
bitcoin
Oct 17, 2023 - (+126.3%)
ether
Oct 21, 2023 - (+91.7%)
|
| 2023 | +22.4% |
EXPD, PLAB, SHOO, SNA
Oct 17, 2022 - Apr 24, 2023
bitcoin
Oct 17, 2022 - Apr 20, 2023 (+47.9%)
ether
Oct 17, 2022 - Apr 20, 2023 (+47.6%)
|
| 2022 | -3.9% |
No stocks (85% cash)*
Oct 18, 2021 - Apr 21, 2022
bitcoin
Oct 15, 2021 - Apr 22, 2022 (-32.4%)
ether
Oct 14, 2021 - Apr 21, 2022 (-16.9%)
|
| 2021 | +63.3% |
No stocks (85% cash)*
Nov 6, 2020 - Apr 26, 2021
bitcoin
Oct 11, 2020 - Apr 22, 2021 (+381.8%)
ether
Oct 11, 2020 - Apr 23, 2021 (+516.6%)
|
| 2020 | -3.6% |
CNC, DHI, SCHW, WAL
Oct 16, 2019 - May 13, 2020
bitcoin
Oct 9, 2019 - May 16, 2020 (+8.8%)
ether
Oct 9, 2019 - May 9, 2020 (+10.3%)
|
| 2019 | -0.4% |
AAN, HA, JBHT, WGO
Nov 5, 2018 - Apr 22, 2019
bitcoin
Nov 4, 2018 - Apr 21, 2019 (-17.2%)
ether
Nov 4, 2018 - Apr 21, 2019 (-16.6%)
bitcoin cash
Nov 3, 2018 - Apr 21, 2019 (-27.9%)
|
| 2018 | +16.2% |
No stocks (85% cash)*
Nov 29, 2017 - May 30, 2018
bitcoin
Oct 14, 2017 - May 8, 2018 (+63.5%)
ether
Oct 14, 2017 - May 11, 2018 (+112.6%)
bitcoin cash
Oct 17, 2017 - May 11, 2018 (+310.1%)
|
| 2017 | +61.9% |
BIIB, BIVV*, DG, DIS, LUV
Oct 25, 2016 - Apr 20, 2017
bitcoin
Oct 11, 2016 - Jun 14, 2017 (+326.5%)
ether
Oct 21, 2016 - Apr 22, 2017 (+304.1%)
|
| 2016 | +1.9% |
AAPL, DSW, GBX, GILD
Oct 16, 2015 - Apr 25, 2016
bitcoin
Oct 14, 2015 - May 10, 2016 (+79.8%)
|
| 2015 | +14.3% |
ALK, BBBY, CTSH, HON
Oct 23, 2014 - May 1, 2015
bitcoin
Oct 10, 2014 - May 19, 2015 (-36.9%)
|
| 2014 | +34.4% |
INT, MSFT, TRW, WMT
Oct 16, 2013 - May 9, 2014
bitcoin
Oct 11, 2013 - Apr 28, 2014 (+248.7%)
|
| 2013 | +105.7% |
EWBC, INGR, OIS, ORCL
Nov 26, 2012 - Apr 22, 2013
bitcoin
Nov 6, 2012 - May 1, 2013 (+964.3%)
|
| 2012 | +30.8% |
AAPL, BKI, FRX, ROST
Oct 17, 2011 - Apr 20, 2012
bitcoin
Oct 23, 2011 - Apr 28, 2012 (+55.7%)
|
You can verify my performance On Twitter,
bitcoin blockchain (search "dogsoftheseason") And HotStockMarket (archive).
The portfolio consists of 85% stocks and 15% cryptocurrency.
In the beginning, bitcoin was the only cryptocurrency in the portfolio with 10% share. From season 2016/2017, other major cryptocurrencies like ether and bitcoin cash can also be a part of the portfolio with 15% total share.
I call this strategy DOTS+C (Dogs of the Season + crypto). The season I'm referring to is the period from autumn to spring during which I hold stocks & cryptocurrency. From spring to autumn I hold cash.
You've probably heard of
‘Sell in May and Go Away’
Well, the same seasonality effect that is found in US stocks and confirmed by several academic studies,
is also found in cryptocurrency price movement.
I use technical analysis to determine exact dates in autumn and spring to buy and sell stocks and cryptocurrency.
Don't be scared to use this (or any) strategy because of one bad season. In 2014/2015, bitcoin lost almost 37%, but in the next year it gained almost 80%.
If you want to find out more about the stock selection process, check out the original DOTS strategy, contact me or wait for my book ☺.