i wrote an article a month or two ago on s*bstack about how i structure my portfolio with risk premia trades, active strats & alpha i have had some positive feedback on it so i wanted to post it on here too the post is about there are some examples so i hope you enjoy 1/x

I know portfolio construction sounds like a dry topic so I plan on keeping it engaging by providing examples on each component. Before I go any further I must say I am (generally) a delta neutral trader. I (generally) do not have directional exposure.

High Level Overview At a high level I break my portfolio up into 3 components: Risk premia strategies Active strategies Alpha strategies They are not equally weighted as risk premia strategies are relatively easy to find whereas alpha strategies are obviously harder to find.

Risk Premia Risk premia strategies are (generally) easy to find. These are strategies that are low effort and tick over every day. They help pay the bills but (probably) won’t make you rich.

You should be able to estimate how much the strategy will make every week/month/year. I usually try to have a few of these tied together

Delta Neutral Example A risk premia strategy that I was running for a while was staking ATOM and shorting the perps. The first leg of the trade was staking ATOM (the coin) to validators which was paying roughly 20%, if I remember correctly.

There were risks: Liquidation risk at the exchange if ATOM were to pump and you couldn’t get money there quickly enough Ledger/hot wallet risk General rug risk (it is ever present in crypto lol)

Author note: I just checked on this trade and it seems the perps now have negative funding, meaning it now costs you to go short. So the trade is over. Maybe look around at coins that have low double digit staking rewards and the funding is consistently positive.