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

trading

#406

No I did not start this with the group. But I intend to do this in a small way soon. However the plan is to rebalance by adding funds and try to do as little selling as possible.


#407

Great. Any updates for 2018?

Are you selling your entire holding at the top of each month prior to rebalance?


#408

been re balancing quarterly - bought in mid Jan and did my first rebalance last Friday

I had a horrific Dollar loss (60%) but only lost 20% in BTC value

That’s cause instead of trading IOTA as my #10 - (a coin I think has a lot of issues) - I went with the Binance BNB instead - that sucker almost DOUBLED in satoishi value and kept me from totally drowning first quarter - LOL


#409

Should you only re-balance if your portfolio is in the green? I am referring to the Top 10 quarterly re-balance stratergy.


#410

Seeing it in a spread sheet WOwW.
BTC to the MOON ! ! !


#411

The idea of rebalancing is to take emotions out of the game.
That means you rebalance every quarter whether your portfolio is in the green or in the red.

If your porfolio is in the green some of your assets probably have performed better than others and by rebalancing you lock in some of these profits and “balance” it in to the assets which under performed the market during the same quarter, assuming that those that under performed have the potential to perform better during the next quarter.

The same goes if your portfolio is in the red.
You accumulate more of the coins that performed bad and reduce the number of coins that performed well.

If we take an example from my monthly rebalancing - Neo was the biggest loser (-48.18%) and EOS the biggest winner (or the asset that lost the least) (-1.54%) during the month of March. Let´s assume I had 100 Neo and 1500 EOS in March - after rebalancing in April I then have 120 Neo, but only 1100 EOS due to rebalancing - because there is the potential for Neo to rise more than the EOS during the next month.

This is a simplied explanation, but I hope it gives you the idea of the reason behind rebalancing.


#412

Thanks for the answer Monque, it was very clear :slight_smile:


#413

Hello, please help! I just came across this thread and am slightly confused. Why do people keep saying quarterly rebalancing produces the best return when it generates a profit of only $805,316.08, when the monthly rebalancing produces a profit of $1,043,902.48 ?


#414

@desafinado
I believe it is because there was an error in the original calculations of the Monthly rebalancing spreadsheet. This was fixed later on.

See here


#415

Thanks so much, Monque! Do you mind sharing what kind of rebalancing plan you’re using now?


#416

I am on a Monthly rebalancing strategy. Also, I have posted my results for each month in this thread.

Here is the link to the latest results. Click here


#417

May rebalancing was due today and we see some green - finally! :sunglasses:

Summary | Top 10 Performance 95.35%

Neo (April rank 9) dropped out of the Top 10 :disappointed_relieved:
TRON entered the Top 10 for May
Underperfomer of the month = Bitcoin 31,21%
Top performer of the month = EOS 206.54%

Despite gaining almost 100% during the month of April, the Top 10 portfolio is still down by approx. ~ 37,10% overall in 2018 in terms of USD value. Interestingly, the total Satoshi value is 0.01 sat higher compared to when I started in January!

Time for Bitcoin to get :bitcoinwings: and take off :bitrocket:


#418

June rebalancing was due last Friday and we are back to what we are used to - sea of :red_circle: everywhere. :sleeping:

Summary | Top 10 Performance -24,41%

Underperfomer of the month = :ada: -35,50%
Top performers of the month = :ripple: -16,67% and :btc: -16,92%

The Top 10 portfolio is down by approx. ~ 53,10% overall in 2018 in terms of USD value. In terms of Sat the entire portfolio lost .063 sat so far.

Great times are ahead of us - I can already smell what the :cow: :cow: are cooking!


#419

What exchange do you use and do you take your coins off the exchange and send them back when rebalancing? Thanks


#420

Yet another bloody month. Bulls still didnt get out of :sleeping_bed:

Summary | Top 10 Performance -28.73%

Top performer of the month = :btc: -11.40%
Worst perfomer of the month = :eos: -38.81%

The Top 10 portfolio is down by approx. ~ 66.30% overall in 2018 in terms of USD value.

Running this interesting experiment like clockwork, however it would certainly be more fun to rebelance if we would see a different color … green days must just be ahead of us!


#421

I chose an Exchange which offers to trade the top 10 coins, but it really depends on what coins you would like to rebalance each week, month or quarter. Binance, HitBTC and OKEx are all offering the current Top 10.

Only leave funds on an Exchange that you are actively trading or funds that you dont mind loosing. As long as funds reside on an Exchange they belong to the Exchange and not to you. I prefer to be in control of my funds.


#422

If I have the funds I may start this for 2019, maybe sooner if possible but not likely.


#423

No fun times…

Summary | Top 10 Performance -25.89%

Top performer of the month = Stellar -3.98% and :btc: -5.91%
Worst perfomer of the month = :miota: -44.03% and :neo: -43.52%

… will we see an upwards trend for the remainder of the year!? :thinking: