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

trading

#262

Ok so where can you trade all currencies or do we need different accounts I am new and understand trading top 10 currencies then readjusting but not sure where the best place to find all currencies as I see most places don’t have all


#263

We actually built a tool and going to release it soon. So I will edit the post with that.


#264

Ok, I updated the Google Sheet and fixed some of the discrepancies. Will be releasing the full website soon. :btc::8bitcoin:


#265

I kind of don’t quite understand why this works.

I mean

  • you don’t know what’ll rise or fall, so you kind of hedge against this by spreading your portfolio
  • but then when you rebalance you might buy into All Time Highs
  • or do you check the course before rebalancing and hold off on coins that are currently ATH?
  • is the only reason this works because the market simply grows over time, so you couldn’t really be wrong in a way?

#266

This is definitely interesting but investing 1k into each of the top ten this year is not going to get you the same results. Ethereum was at 8.00. Litecoin was at 4. Monero at 13. Dash at 11. All with low circulating supply and room to grow. Coins in the top 10 now are much more expensive and the cheap ones are only there cause their circulating volume is in the tens of billions.


#267

That is completely true. Expect the same increase of value would be science fiction


#268

im emotionaly preparing myself to start doing it, but with a limit for “swap” … something like never give up 100% of a coin, remove 10 or 20% max of any coin to put on other, skip any coin that is strangely high … still need to think better about this… dont want to messup.


#269

this look simple yet so effective im new to crypto and have no idea where to start at all its all confusing would this work in 2018?


#270

So do you sell coins that remain in the Top 10 if they stay the following month, or do you split the profits 10 ways and add to your bag size. I’m planning on doing this strategy, but lets say Bitcoin stays in Top 10 all year, do you ever sell the bitcoin, or do you just continue to add to it with your profits. Not sure how to do this part. Thanks


#271

I would presume the most optimal solution is to just sell the excess of each coin and buy into the ones that are under performing… for example we’ll use the top 3 with an initial investment of $1000 in each at the beginning of the month and a 0.1% exchange fee…

End of month
BTC: $1700
LTC: $750 (Thanks Chuck Lee)
ETH: $1300

Your re balance target would be $1250 into each coin. So you have 2 options.

  1. Sell everything and buy back in with $1250. This case you pay a n exchange fee to sell all and re-buying back in. So, $3.75 x 2 = $7.50. Super easy, but costly (might be worth it).

  2. Selling the excess… Sell $450 of BTC and $50 of ETH and buying $500 of LTC. This case you would only be paying $1.00 in exchange fees. Of course, this gets exponentially more complicated with more coins and exchanges (also transaction fees to send funds from one exchange to another)


#272

It sounds counter intuitive to buy into coins that drop, no?


#273

Exactly! Nicely stated. :hulksmash:


#274

Coins that drop, can also go up.


#275

A rebalancing tactic is meant to take the FOMO out of trading. Trust me when I say that FOMO & FUD will burn you out with crypto investing.


#276

Depends on your prospective and the viability of what you’re investing in.

If Amazon’s stock price was on 6 month decline but still making record high’s in sales with great plans of market expansion. Would you want to buy in? Answer: Uh yeah?

If XRP dropped? Answer: Fuck no, it’s worthless. I hope it goes to $0


#277

I keep seeing people writing about this tactic and doubting or questioning it.

The tactic is supposed to take the FUD & FOMO out of trading. By investing in a set number of coins then rebalancing on a given time period, you reduce the FOMO/FUD within the market.

If you’re new to crypto, this is a solid strategy by following the Top 10 coins. More experienced traders might not like the fundamentals of the Top 10 (I’m looking at you XRP :ripple:), but by sticking to a set number and strategy, this will help new traders get into the market.

If you invested 1k in the Top 10 coins on Jan 1st, you’d already be up $2,422.06.

I personally am using this strategy for my fiancee’s account because I don’t have to watch it closely. Which frees up my time to invest in my own Top altcoin projects that I believe in. :btc::cardano::neo::icx::litecoin::bitrocket::vitalik:

Definitely, check out @Tranman324’s method of rebalancing.

Note: Just because they’re awesome returns in 2017 using this method, 2016 only saw about 30k returns. So, be mindful of your strategies and the market. Strap in cause 2018 is going to be wild :2017:


#278

Am I looking at the data incorrecrtly. Many are saying that the Quarterly rebalancing is amazing. Didnt the monthly rebalancing sheet return more at the EOY?

Please correct me if wrong.


#279

You’re not wrong. One problem with manually inputting data is that you can mess up. I’ve since fixed the data in the doc.

This also doesn’t look at the BTC value of the coins and I think that’s more important when looking at this over the dollar value.


#280

This is a semi long thread, i read the previious replies now. Thanks.

I also fixed the formulas in the fields to divide by 10 automatically so that I can see how much gain i can get with a different starting investment.

I may look to do this with a smaller amount. or just rebalance my current portfolio. Any opinions?


#281

I had this automatically working but it was throwing off some numbers. Honestly not spending much more time on the doc cause it’s better to build software to do this (which has been done and going to launch soon)