Traditional Investing & Portfolio Theory

What is sequence of returns risk?

Sequence of returns risk is the danger that the order in which gains and losses occur, not just their average, affects an investor's outcome, particularly when money is being withdrawn. Early losses can do lasting damage even if average returns look fine. For example, two portfolios with identical average returns can end very differently if one suffers heavy losses early while withdrawals are happening. This is why timing of volatility matters near a goal. Qatobit documents the methodology behind its QSI crypto indices so investors can weigh this kind of risk before allocating.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.