RE: Portfolio Rebalancing Tool Using Google Sheets - Quadruple Your Earnings!

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Portfolio Rebalancing Tool Using Google Sheets - Quadruple Your Earnings!

in cryptocurrency •  8 years ago 

Would you address the comment posted by one guy under Giovanni post?

Quotation:

"maybe I'm just tired and not reading this correctly, but your calculation doesn't work.

If on day 2 when BTC goes up to 3000, and you rebalance "To rebalance your portfolio you sell the excess BTC and get USDT. This will give you a portfolio with 5 BTC and 13750 in USDT".

According to that you've just made USDT out of nowhere without actually selling any of your 5 BTC. I assume you mean that you sell 0.416 BTC to USDT which would actually leave you with 4.583 BTC and 13750 in USDT (the equivalent vales of both)."

and then:

"If you forgot to take away the BTC you sold each time in your calculations it would explain your crazy exponential graph.
After day 3 when BTC goes down to 2300 and you rebalance you'd actually have 5.281 BTC and $12,145USDT = $24290 value. Now this is still better than holding for sure, but does not put you in front of where you've started."

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If you link his post or the comment in question I will take a look otherwise I think I'm missing to much info to provide an answer.

In general with stocks, rebalancing is best if its not done to much. I don't know the best timeline for crypto but I would speculate that its weekly or bi-monthly given the volatility.