Re:The Inverse Jim Cramer ETF Has Officially Arrived
by JumpCrisscross on Thursday March 02, 2023 @07:21PM
(#35004021)
> you increase the time window, showing a net loss is less and less possible
The solution is flow weighting [1]. Fewer dollars went into Bitcoin when it was small than when it was big. (By definition.) So you weight the larger flows more heavily.
There is arbitrariness around choosing the delineations. But the basic idea is comparisons across totally-different fund-flow regimes are meaningless for purposes of explaining the present state of the world.
The solution is flow weighting [1]. Fewer dollars went into Bitcoin when it was small than when it was big. (By definition.) So you weight the larger flows more heavily.
There is arbitrariness around choosing the delineations. But the basic idea is comparisons across totally-different fund-flow regimes are meaningless for purposes of explaining the present state of the world.
[1] https://www.investopedia.com/terms/w/weightedaverage.asp