there have been some discussion on the risk associated with the NMR price. As far as I know, no real solution has been posted so far.
So here is my solution:
- Buy (let say 100) NMR on Coinbase
- Stake that 100 NMR on you model
- Short sell 100 NMR on Coinbase (pro.coinbase.com let’s you do it)
- Make some profit with you model
- The two 100 NMR positions will cancel each other. You have no risk of volatility on that 100 NMR
- The NMR you earn in the tournament is yours at the current NMR price level and it’s risk free
- You pay a small fee for holing a short position
- The two positions you hold are not going to push the NMR price any higher
- Staking more on the models, you are confient with could benefit Numerai on the long run
- Yes, you will need 200 NMR worth of USD to do this. Still this solution is still better than no solution at all.
Enjoy and stake more!