Hive Blockchain Crypto Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 3rd Rebalance


This is a copy of a post that I first made on the Hive Blockchain on 02/12/23 (link here to original post) - I aim to always post these updates on Hive first, and then here in PublishOx.

This is a post by @hoosie, using an alt-account. This is an update on a tribe token experiment I started on the 10th of Nov 23. This experiment is designed to use 4 main techniques to see if its possible to grow an account fairly organically:

  • Delegating tokens to tribe curation accounts,
  • Delegating HP to curation accounts that provide drips in the target tribe tokens,
  • Via posting experiment updates in the relevant tribe accounts,
  • And by using portfolio rebalancing (inspired by the XV token project from @spinvest which uses portfolio rebalancing to take profits).

You can check out the initial post that explains it all here.

231202 change in tokens since start.png


Rebalance Update

This is a standard update following a rebalance of the account.

Starting Position

231202 starting position.png

The table above shows the starting position for the week, the new number of tokens (before the rebalance is undertaken and spare HIVE is sold to buy more tokens). The table also shows the new token price, value and percentage weight of the tokens in the basket.

The additional tokens gained came from a combination of:

In the future, when there is enough HP on the account, I will also start to delegate HP to accounts that also bring in the targeted tribe tokens.

The table below summarises the planned delegations and accounts to be used:

delegations accounts.png

The good news this week is that the cartel delegation accounts (those with the name ending in '-curator') are all working again, and paid out this week, so thats great !


New swap.hive to invest

As this experiment is only about the 8 noted tokens, all other income and tokens were sold for swap.hive to be re-invested in the tribe tokens. This came from:

  • 50% of the previous week's post payout in HBD was sold for hive,
  • All other tokens in hive-engine that are not part of the experiment were sold.

That gave new a new basket balance of:

231202 amount to spend.png


Rebalance Calculation

The 'total value to rebalance' figure from above was then used to calculate the new number of tokens that should be held in the basket, if spread evenly across all 8 tokens - see table below. The column at the right states how many existing tokens need to be sold (if the number is negative) and how many new tokens need to be bought (if the number is positive).

231202 rebalance calc.png

If tokens need to be sold, then it means that token price has done well in the week, and the rebalance acts to effectively take profit from the gain in that token's value in the week, so that it can be used to buy more of one of the other tokens that has had poor price performance in the week (ie, to buy more tokens at a bargain price).

The table above also shows the price change in the week. As can be seen there were some fair differences, most notably PIMP going down by 24%. Its when we see nice changes like that the rebalancing should have a good effect. I also had a good amount of swap.hive to be spent so as can be seen there wasnt actually a need to sell any other tokens this week. However, when I went to buy the tokens needed to rebalance the basket, I made a mistake when buying the PIMP needed, and bought 75 instead of the 31 I should have bought ! That then meant I couldnt buy all of the CTP I needed, and none of the BEE I needed. Its ok though, things will even out again in a number of weeks.

Actual Rebalance

As guided by the table above, the following action was then taken:

  • Sold tokens that needed to be sold,
  • Bought tokens that needed to be bought.

N.B. Due to the time it takes to un-stake tokens (if needing to be sold), and the difference in buy and sell prices, it may not always be possible to rebalance the basket exactly as planned. Although in general, from week-to-week it should average out, so that it should not be too far out. As such, the following table presents the totals after undertaking the actual rebalance, with the aim of trying to get as close as possible to the planned rebalance numbers.

And as said above, because I made a mistake, this weeks rebalance went skew-wiff and the amount of PIMP held is way more than needed, whereas BEE and CTP are below the values needed to rebalance the basket. But it will sort itself out in a week or two.

231202 new actuals.png

From there - all tokens were staked, and delegated to the noted accounts.

That completes the rebalance process for this period.

Summary

The following table presents the summary for this rebalance:

231202 rebalance summary.png

The following table presents the summary from the start of the project:

231202 summary since start.png

So apart from the mistake I made when buying too much PIMP, things have worked out pretty well this week, especially with the cartel curations accounts starting to work again. There were increases across all tokens this week and as such it was a good result - mostly due to the nice payout on the post from last week, which provided a nice amount of swap.hive to be used for buying more tokens.

The post payout has also helped by increasing the amount of HP on the account. The account now has 7.6 HP. After it gets to 10 HP, any other HP gained will then also be delegated to the appropriate HP curation accounts for the tokens, providing yet another means of growing the number of tokens held in the basket. So hopefully that will start kicking-in in around 2-3 weeks time, although I think it will be a slow grower as these posts are not earning that much, but hey thats ok, and it will grow over time.

So far the following aspects are working:

  • Using post payouts to help buy more of the tokens needed (so far this is providing the largest amount of weekly growth by a fair margin),
  • Selling other spare tokens gained (ie, ones that are not in the target 8 tokens, eg, LOLZ, PGM, etc), to buy more of the tokens needed (although this is not adding up to much at all),
  • The token duration accounts are all now working to bring in more of the target tokens,
  • I did a get few more ALIVE tips during the week, brining in another 0.3 ALIVE - so that added (it all counts !),
  • The rebalance method did work as I was able to focus on buying tokens with the largest discount price (especially PIMP - and if the price of PIMP goes back up before the next rebalance, then my mistake will pay-off in my favour !),
  • Adding the relevant token community tags to the post also helped as there were a number of small token payouts related to those.

But the following aspects are not working yet:

  • I've not yet got enough HP to start delegating HP to get even more gains of the target tokens. But that will hopefully begin to happen in maybe around 2-3 weeks time,
  • I dont yet have enough un-staked-liquid tokens each week to sell when there has been a good pump in one of the target token prices. Although I actually didnt need to use that this week as the post payout provided enough swap.hive that it was not necessary to sell any of the basket tokens. However, again, as the account grows in size and delegation/curation starts working properly, that should increase the liquid amount available each week allowing me to better utilise the rebalancing method when there is a need to sell some.

So its only the third week and the third rebalance, and it is pretty clear that its all working. Once I can start delegating HP as well, then all methods will be kicking in and working together to make the account grow - it will nearly look like perpetual motion (hopefully) !

If you are interested in the Hive Blockchain you can sign up using Inleo/Leofinance or Ecency.  

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Hoosie
Hoosie

ETF, mutual fund and crypto trader - trying to accumulate crypto coin from freebies with very little financial input. My main investments are made in mutual funds and ETFs on the Fidelity International investment platform.


Crypto Token Staking & Curation Experiment
Crypto Token Staking & Curation Experiment

This is a blog of posts on a new crypto token experiment I've undertaken using tribe tokens on the Hive Blockchain. The experiments assess the use of staking, curation and rebalance techniques together to grow a basket of crypto tokens.

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