What does rebalancing (adjusting) the Crypto Strategy structure mean?
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It is the process of buying or selling assets to maintain an original desired level of asset allocation or change to the new desired level of asset allocation. For example, you designed your strategy to contain 50% Bitcoin and 50% Ether. Let’s say Bitcoins price rises higher than that of Ether. You may end up with Bitcoin comprising 60% of your strategy (60% of assets copying the strategy). Adjusting the structure simply means selling some Bitcoin and buying some Ether so that their shares in your strategy get back to 50% each. But let us do the complex math and trading, your job is finished with a few simple clicks.
Another look at adjusting structure is:
- changing the weights of individual assets in your strategy (e.g. if you want Bitcoin to represent 30% of your strategy instead of 50%),
- adding new assets to your strategy or
- removing existing assets from your strategy structure.
How to manually adjust/change Crypto Strategy structure on ICONOMI platform?
Login to your ICONOMI account, go to the "My Crypto Strategies", select the "Structure" tab, and follow the on-screen instructions.
- Short description of the process
After writing down the new weights or adding new assets into your Crypto Strategy and selecting a trading algorithm you will first submit the Strategy change. Once that is done, ICONOMI will check and confirm it within a few minutes. After that, our system will calculate which assets need to be bought and which need to be sold. In the next few seconds, our system will check the prices of those assets across multiple exchanges where we do trading, and start executing the orders to the exchange with the best price in market at that time.
- Search and filter
Users may expand the filter field beneath the assets-coins search/input field and filter coins by specific categories. This is especially useful for creating category-based strategies like “DeFi Strategy” or “Infrastructure Strategy.”
- Handy shortcuts for a faster structure adjustment/change:
- Copy current index
- Copy previous structure
- Fill equally (weight spread)
- Fill proportionally (weight spread) (shortcut to spread the remaining weight among assets that are already included in the strategy. Let's say you have 30 assets in your structure and you remove one with 20% weight. Now, you can simply click “Fill Proportionally” that results in an instant spread of the remaining 20% among other assets according to their weight)
- Drafts / Save as draft
- Templates / Save as template
- Choose between three trading algorithms
You may choose between three trading algorithms when adjusting your Crypto Strategy structure. Each trading algorithm revolves around two parameters: speed of trading and price of trading:
- Best price (slower): The default algorithm, providing users with the best market price at that time, but with slower performance. Places limit orders (best bid/best ask) and waits for them to get filled. For additional explanation please read also our blog post "Best price (slower) trading algorithm".
- Regular: Time-weighted average price (TWAP) algorithm, trades a fixed amount of assets over a fixed period of time.
- Best time (accelerated): Places multiple limit orders at best market price over a shorter period of time.
CAUTION: Selecting the “Best time (accelerated)” algorithm will trigger multiple limit orders at the best market price. When using it on assets with low liquidity or thin order books, this could result in very high slippage and may drastically affect the execution price.
- Assets ‘Quick Look’ for easier structure adjusting
For more information please check the blog post "Introducing ‘Quick Look".
Apart from obvious information on each asset:
- charts, returns, and BTC comparison widgets
Quick Look comes with three new pieces of information:
- Assets health.
Asset health is determined by two main criteria:
- Asset daily volume
- Asset exchange availability on exchanges supported by ICONOMI trading engine.
- Max. daily volume
This is the cumulative trading volume from exchanges supported by the ICONOMI trading engine (the maximum volume we can provide for a specific asset).
- ICONOMI Pulse
ICONOMI Pulse is a branch of functionalities intended specifically for Strategists in order to give them good insights about trading directions on ICONOMI. Currently, ICONOMI Pulse provides easy insight into trading trends. Users may choose a specific date or buy/sell filters. Each view is calculated based on the top traded asset for that day/filter, and all other assets are calculated relative to the top traded asset that day.
This means if the buy volume’s top traded asset was BTC, all other assets for that day are ranked relative to BTC’s volume of that same day.
- Check the current progress of the submitted Crypto Strategy structure change
You can check the current progress of the submitted Crypto Strategy structure change by monitoring the progress bars "_ _ _ _" available under "My Strategies > Overview tab > Target column".
Please check all/other rebalancing options here
- MANUALLY - adjusting/changing the Crypto Strategy structure
- RULES - advanced automatic rebalance triggered by preset rules
- NIGHTWATCH - simplified automatic rebalance - "Protect my assets for the next 12 hours."
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