Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 10th rebalance

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 a number of techniques to see if its possible to grow an account fairly organically, including:

• 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.

Rebalance Update

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

Starting Position

The table above shows the starting position for this rebalance, 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:

• Tips made in the comments of the previous rebalance post (0.1 ALIVE !),
• Tribe tokens gained from tagging the relevant tribes in the previous rebalance post (using the tags; #leofinance, #aliveandthriving, #pimp, #pob, #cent, #neoxian, #inleo, #hive-engine, #tribes, #hive) - but nothing major to speak off for this period,
• And, tokens gained from delegation of the tribe tokens held - this worked, although there was nothing that stood out particularly, as it was only an 11 day period and the total number of tokens delegated is still quite small. However, its growing and I can see the difference its making over time, even if small, which is good.

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. That may start happening quite soon, which will be exciting !

As can be seen in the table above, the basket value has fallen since the last rebalance (by 0.419 HIVE - not too much) due to the price of 4 of the tokens falling in value (out of 8). However, it was still good to see that there were gains in the number of tokens across all 8, before entering into the rebalance calculation, which is the main thing.

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

Only 7 of the noted token delegation accounts used paid out since the last rebalance - I'm sure that the one that didnt pay out will catch-up at some point.

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. The price of HIVE was low which gave a good conversion price from HBD which was nice, although it was a very small post payout,
• I didn't manage to see off much in the way of other layer-2 tokens in the wallet this time, so that didnt make a contribution to this rebalance.

That gave a new basket balance of:

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 titled 'difference from above' 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).

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

The table above also shows the price change in the period. As can be seen 4 of the 8 tokens in the basket had dropped in value, creating an overall drop in the basket value. However, I was able to sell small amounts of LEO, BEE and NEOXAG. The sell of NEOXAG was a mistake, because the difference number was positive, so I shouldn't have sold any - but it wont make much difference. The LEO sell was for such a small amount that it made barely a difference, where as the BEE sell worked ok. I was able to buy a decent amount of ALIVE with the spare funds available - so that was good.

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 (and that certainly was the case again in this period). Although over time it will average out, so that it should not be too far out. And as the curation income grows, so too will the liquid amounts available each period, at which point the rebalancing will work better. 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.

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

The main tokens gains were for ALIVE (from the rebalance purchase) and then CENT and CTP (from a combination the curation accounts and the post payout due to the tags used). Overall, all tokens had some gains from curation payouts and the post payout, except LEO (because I sold all of the liquid LEO I had as part of the rebalance). So its great to see the majority of the tokens gaining in number again.

That completes the rebalance process for this period.

Summary

The following table presents the summary for this rebalance:

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

So it was a poor rebalance this time around. The post payout was poor, there was not much in the way of a payout from the token tags from the post, and I wasnt able to sell that much during the rebalance to make much of a difference. However 7 out of 8 tokens did increase in overall number, with ok gains for ALIVE, CENT and CTP.

The basket lost a small amount of value in the period, but since the start of the experiment its still way up in value.

The table above attempts to summarise how the various methods have worked in the period, and rank them in order from best to worst (top to bottom). Its hard to capture the exact values from each method making a contribution, but it gives a rough idea of how its all working.

The post payout in HIVE dominated again, even noting that it was pretty low. The drop in the value of 4 of tokens had the biggest impact though dragging the over value of the basket down.

So thats the 3 losses out of 10 rebalances now, but it was only a small loss. Thats expected to happen as the overall market goes up and down, and as long as I'm still able to purchase when the market has gone down, then the main rebalance method is still working, because a large part of the aim is to have an ever increasing amount of tokens.

It wasnt the most exciting rebalance, but I'm hoping to start delegating HP to curation accounts soon as well, and that should help to make a difference in the coming months. Overall, its still going in the right direction so I cant complain !

That wraps up this rebalance. Heres looking forward to the next rebalance already !

Details about my alt-account

This is a post by @hoosie, writing on an alt-account that I setup purely by accident when I didnt know what I was doing during my first few weeks on the Hive blockchain ! I thought I was getting an actifit account for my main hive account, and instead bought an entirely new actifit hive account, that I've rarely used ! I have used this account for the experiment because it basically had zero value in it (well about 1-2 HP worth), and importantly very little layer 2 tokens, and hence it acts as a clean slate to properly track progress for this experiment.

Requests to be tagged in the report

If you want to be tagged in the report so that you know when a new one comes out, let me know:

@fantagira, @tydynrain, @shanibeer, @new.things

Posted Using InLeo Alpha