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Disclaimer:
Past performance is not indicative of future results, and the value of investments can fluctuate. The application of AI does not eliminate risk, and there is no guarantee that the strategies described will achieve profitable outcomes. Users are responsible for their investment decisions and should carefully assess their risk tolerance and financial objectives before engaging in any trading activities.
Investing in cryptocurrency and other financial markets carries a high level of risk and may not be suitable for all investors. The use of AI technology in trading is still evolving, and unexpected system errors, technical issues, or incorrect predictions may occur. Users should be aware of the possibility of losing some or all of their invested capital. We strongly recommend consulting with a licensed financial advisor or professional before making any investment decisions. By using the information provided in this e-book, users agree that the authors, the platform, and any affiliated parties are not responsible for any losses or damages arising from the use of the strategies and tools outlined in this e-book.
The information provided in this e-book is for educational and informational purposes only and should not be considered financial or investment advice. The use of AI in trading, including basket trading strategies, involves inherent risks due to market volatility, technological limitations, and unpredictable market behavior.
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I have 2 views on diversification. If you are a professional and have confidence, then I would advocate lots of concentration. For everyone else, if it’s not your game, participate in total diversification. The economy will do fine over time. Make sure you don’t buy at the wrong price or the wrong time. That’s what most people should do, buy a cheap index fund, and slowly dollar cost average into it. If you try to be just a little bit smart, spending an hour a week investing, you're liable to be really dumb.
If it’s your game, diversification doesn’t make sense. It’s crazy to put money into your 20th choice rather than your 1st choice. 'Lebron James' analogy. If you have Lebron James on your team, don’t take him out of the game just to make room for someone else. If you have a harem of 40 women, you never really get to know any of them well.
Charlie and I operated mostly with 5 positions. If I were running 50, 100, 200 million, I would have 80% in 5 positions, with 25% for the largest. In 1964 I found a position I was willing to go heavier into, up to 40%. I told investors they could pull their money out. None did. The position was American Express after the Salad Oil Scandal. In 1951 I put the bulk of my net worth into GEICO. Later in 1998, LTCM was in trouble. With the spread between the on-the-run versus off-the-run 30-year Treasury bonds, I would have been willing to put 75% of my portfolio into it. There were various times I would have gone up to 75%, even in the past few years. If it’s your game and you really know your business, you can load up.
— Warren Buffet, "The Essays of Warren Buffett: Lessons for Corporate America”
As Warren Buffett highlights, true investment success often comes from either full commitment to well-researched positions or, for most people, a diversified approach that mitigates risk. The AI Basket offers a unique opportunity to benefit from both philosophies. By automating asset allocation, you can aim to achieve efficient diversification across crypto assets, while its optimization features empower you to prioritize high-conviction assets in alignment with your risk tolerance.
Welcome to your comprehensive guide on mastering our AI Basket product on SageMaster! Whether you're new to investing in crypto or an experienced investor, the AI Basket is designed to assist you in configuring or automating aspects of portfolio creation, management, and potential optimization. This guide will provide you with all the information you need to effectively utilize this powerful tool
Investing can be complex, but it doesn't have to be overwhelming. This guide aims to demystify the AI Basket feature by:
By the end of this guide, you'll have a solid understanding of: