Many experienced traders will say, don't touch low market cap low liquidity coins, as they could go to zero at any time. However, that's not the case. If you had maintained a full position in spot Binance from 2021, trading the bottom 5% of coins by volume over the last 300 days, and rebalanced every 8 hours, congratulations, you could have achieved a peak return of 600 times.


Small-cap strategy backtesting capital curveAs can also be seen from the chart, the strategy is not always effective. This is especially evident during altcoin seasons (the major uptrends at both ends of the chart). However, there won't be huge drawdowns during bear markets. In fact, the small-cap factor has been effective over the long term in the crypto space.