Topic: Portfolio management. Rebalancing. - page 2. (Read 381 times)

Interesting, but isn't rebalancing in every month so much? I think coins may decrease though there is no reason that lead to it, so if you bought a good coin like eth, no need to sell it if it goes lower.

   With the coming quantum technologies, the current market must experience many changes. To be more exact, many coins will leave the market, as there will simply be no demand for them, due to the same technological superiority. Without certain experience, Trading and Hodling are risky. The most acceptable method of investing at the moment is ICO. For a more successful contribution, you need to carefully analyze the project. Identify is necessary for the market side. For example, the Kelvin Blockchain project has an innovative method of encryption, transmission, storage, and security. All this is based on quantum computing. Thus becoming in demand in the future.

Really good post, I really like your %s and your reasons.. awarding merit.   Good for providing the template as well, I may try to adapt something similar for my own portfolio for analyzing. Thanks.

I like your approach. I'd put more percentage in the type of coins you understand better. Let's say I play microcaps mostly, so I keep 50%+ in them. However, such a tactic will not insure us completely from possible losses, unfortunately

Thanks for this post. It actually has some interesting thoughts. I don't hold to many coins right now, so I can't really do this, but you are are saying makes sense to me, and if I ever get more serious about trading, and start investing in multiple coins, I will try to put this in practice.

In the management of financial assets, there must always be a plan. This way you will form and fix your vision of investments, and it will become clear what to do in one or another situation. Without a plan, you can either behave too passively about the market or make unnecessary mistakes.

The first thing we'll talk about is Rebalancing. The point is that at the beginning of the period you choose the proportions of coins from which the portfolio will consist and after this period you return the balances to these proportions.

The market is developing by cycles, one or another coin raises, falls, so while you using rebalancing, you ensure yourself from losses in such market behavior, making growth equable. This way we follow “Buy cheap, sell high” principle.

I do rebalancing in the middle of every month. This process includes

• Selling coins which enlargened their percent
• Buying coins which went down
• Getting rid of coins which disappointed m

First of all, I decide which part of my funds I’ll leave in BTC, which part is in alts, and which will be spent on new coins, trading, and ICOs.
For me, I've chosen that it will be 10% on ICO, trades and potentially interesting coins, and 90% are either long, or they are waiting for more promising projects to replace them.

I separated coins into few groups:

• BTC
• High-cap alts (mcap >2B USD)
• Mid-cap alts  (500M-2B USD)
• Low-cap (100–500M USD)
• Micro-cap (>100M USD)

These values are quite conditional as market capitalization changes every day.
If to break portfolio in percentage parts, for this market I stopped on these amounts (choose your own):

• BTC — 40%
• High-cap alts  —20%
• Mid-cap alts — 10%
• Low-cap — 10%
• Micro-cap — 10%
• ICO & etc. — 10%

I want to overtake whole market growth so as soon as it will become bullish, I'll invest the majority of my funds into more risky cons with good potential.
Finally, I have such a table (the only example — you can choose your own values):



I do my rebalancing in Google Sheets, using their integrated ability to set up formulas (How to do it).

As an option, it's possible to have some part of your funds in fiat to buy crypto during market dumps. Here everyone decides for himself.

This simple trick will help to look at portfolio management from the new side and to avoid unnecessary risks.

The Spreadsheet Example https://docs.google.com/spreadsheets/d/1_76KigwUqoYtDswrkooSJUJE-cvGHys3LHAoukgFNhA/edit?usp=sharing

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