Rebalancing vs Buying in Top 10: $1,043,902 Profits!

trading

#365

I agree. Also not changing anything in Jan


#366

Why do you think this? I’ll be rebalancing tomorrow no matter what’s happening with the market. You shouldn’t avoid rebalancing when the market is down.

When everything is going up, some coins have more gains than others, so you are in effect selling the highest gainers for the lower, lesser gainers (and gain more overall shares in total, especially when those relative prices shift again for another rebalance).

When everything is going down, you are selling the least losers ( -20%) for the ones that lost more ( -40%) (i.e. the bigger discount). You also book a capital loss for tax purposes (a good thing). Then when those relative prices shift back in the other direction, you rebalance again to have more total shares of everything.

The best rebalancing scenario of course is when some coins are up and some are down (inverse correlation).


#367

So it’s about commiting to a strategy then?


#368

Anyone balances there month 1 losses? :joy::joy:
I know this top 10 portfolio will come through but I had to chop Tron at 60% loss for EOS
I will let it ride out till end of Q1 for rebalance
I know selling at a loss is silly but I just don’t like Tron and should have skipped it like BCH


#369

Yes, you can’t let emotions get in the way of the rebalancing strategy.

You’re goal is simply to gain more total coins. The prices you rebalance at doesn’t matter if you believe that the market will ultimately keep rising long term like the stock market.

The deltas (differences) in the prices relative to the other assets in your bucket is what matters. If they all fell or gained by the same percentages, no need to waste time rebalancing.

But in practice there are always differences. We’ll see this year that Bitcoin will drive the entire market less and less as it loses market dominance from total market cap perspective… i.e. other cryptos will become less and less correlated with bitcoin’s price action, which is a good thing for those of us who rebalance!


#370

You are correct when it comes to the top 10 strategy.

I forgot that most people here are doing that specifically. But myself and some friends are rebalancing a select 8 (or 10) coins that we have chosen and researched. Since I am in the red on all of those 8 coins I invested, I do not see the point of selling and buying the same 8 with less btc than I started with in the beginning of January. A few of the coins’ prices are lower than at the start of the month but the total shares would still be less if I were to rebalance now.


#371

I don’t do top 10 either. You can see my strategy in another post here (as well as my spreadsheet that makes it easy to execute):

“I do not see the point of selling and buying the same 8 with less btc”

I don’t understand that statement. For example, in my case, FIRST I log in and do all the selling of the 4-8 coins that need selling in the first 5 minutes, and I sell them into BTC (all market orders so that it goes quickly). Then I do the buying in the next 5 minutes out of the BTC proceeds from those sales. In the end, I end up with the same BTC I started with (BTC is just the vehicle).

I rebalance at least once a week with no emotion involved. It works whether or not all coins are in the red or not.


#372

OMG, tried to read all 370 posts on this thread but this is way over my head and I really would like to understand how to use the tool. Just started trading a few days ago and it is still overwhelming. Anybody who speaks spanish (just in case my otherwise good English falls short) and has tons of time and patience care to give me a "rebalancing for dummies " crash course? I´ll buy you dinner!!!


#373

Yep I do the same but with Eth and top 20. Started in 25 Jan and am currently about 16% down which is not bad considering the health of the market currently.


#374

Alright so I’m doing the Top 10 re balancing strategy with $1000 so $100 into each coin. Started beginning of Jan (unfortunately) re balanced last Saturday for the first time. I turned my $1000 into $420. IOTA and TRX left the top 10 so I sold my whole position on those, and used the profits to buy the two that replaced them, NEO and EOS. I then shifted my portfolio around so each coin had roughly $42 in each coin ($420/10 coins). Hopefully Feb is a little nicer than Jan was this year. Anyway thought I would just give an update on how its going.


#375

Would also love some sort of dummies guide to doing this strategy :wink:


#376

I was planning something very similar (also sadly starting in Jan), but I have come unstuck on my first rebalance because Binance is unuseable last couple of days.

I looked into the US top 10 fund - the $25,000 is not worries, but you have to ALSO be a US “Approved Investor” - that is to say a millionare (not including property) and earning over $200,000 anually.

The rich do like to keep their little club. Of course one could take the $25,000 to Las Vegas and nobody would think to have “protective” legislation like this… it’s ok when you will probably lose!


#377

dear all,
I started Crypto in November without any knowledge and invested 2K€ in Ripple (cheap and massive potential increase compared to BTC) that was my initial thought.
I was seduced by the idea behind BTC.
I did a very good run from 0,22€ up to 2 €. I sold because in parallel to my investment I started to read and understood slightly better the way market “work” thanks to all of you and specific thanks to Peter that I follow everyday ! Thanks for your energy and for sharing your knowledge ! I converted all for BTC.

So I started the mid January Rebalancing technique with the mix below:

  • Bitcoin
  • Ethereum
  • Litecoin
  • NEO
  • EOS
  • ICON
  • OmiseGO
    Don’t hesitate to comment my choice :wink:

Due to taxe purpose I haven’t decided yet if I will go for monthly or Quarterly.
So far I’am virtually down by 25% since Mid January and up by 61% since November + my January additional investment.

Thanks


#378

Greetings Crypto Buddies,

Just to let you know that I just finished rebalancing my Top 10 portfolio for the first time. Overall the portfolio was down -46,85 % :see_no_evil:
Since I decided to only trade the Top 10 on Binance, I swapped XEM (rank #10) for IOTA (rank #11).

I sold and re-purchased at market price within a 5 minutes time window, but still my portfolio suffered a loss of 0.003 sat :open_mouth:

I am positive that February will do better than January [worst is almost impossible :thinking:] and that we will see some gainz :star_struck: or in my case at least break even with my initial investment/USD value! :joy:

Good luck to you all - 10 more times to rebalance this year!


#379

I’m tracking this thread, but I never get the notifications about new posts? Any idea @peter


#380

I think you need to bookmark it if you want the notifications, tracking will only add an “unread” count next to the thread title.


#381

If you are “tracking” a thread, you will only be notified if someone mentions your name in a post, e.g. @Lecomputer . If you want to get notified for every reply, you need to change it from “Tracking” to “Watching” .


#382

Thanks but other threads that I track show notifications in the top right when I go to the pub. But not this thread. It’s weird

I don’t want emails every time someone posts but just want to keep up to date with threads when I’m here. Any ideas?


#383

If you only want to show the notifications in the top right corner, Tracking should be good. Perhaps the tracking for your account is not broken and not recgonized on this Thread; try to change it to something else “Muted”, “Normal” or “Watching” make sure it’s saved/applied and then change it back to “Tracking” to see if you get notified.


#384

Yeah it seems to be working now…lets see :slight_smile: Thanks