Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 11th 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).

I've also started to use Inleo for posting updates, as that should also provide a small boost to the amount of LEO token income, which is one of the 8 targeted tokens in the experiment.

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 (0.2 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) - POB, CENT, CTP and NEOXAG were notable in the period- small, but working quite well,
• And, tokens gained from delegation of the tribe tokens held. This worked well enough, with @heartbeatonhive catching up with some missing payments which was great, including HBD and HIVE drip payouts in particular which were really helpful for the rebalance.

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 0.921 HIVE) due to the price of 4 of the tokens falling in value (out of 8), with PIMP (-34%), CTP (-40%) and NEOXAG (-22%) clocking up big losses in particular. However, thats how the rebalance method works - you sell when prices are up (which it was on 4 tokens), and then buy on the tokens where the prices are down.

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

All 8 of the curation accounts paid out in the period which was great to see.

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,
• HBD & HIVE drips, direct into the account Hive Wallet, from the delegation to @heartbeatonhive,
• And, selling off other layer-2 tokens, of which there were a few to sell (for not much value- but it all counts).

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 ALIVE, because their prices were up and I had small amounts of liquid tokens available from the curation delegations and post tagging payouts, to sell. For purchases, I then always target the token that has dropped in price the most in the period first, which was CTP (again), and bought as much as I could of that with the spare investment funds, but didnt have enough left to buy any of the other tokens needed to make the rebalance.

But overall, the rebalance was successful - 3 tokens were sold to book a profit, and one token was bought to hopefully make a future profit.

My only concern is that CTP has been consistently dropping in value (compared to the other tokens), to the point were it may be starting to have too much of a negative effect on the value of the basket. I'll continue to live with that for the moment, but in the worst case, it could require a token change (ie, drop it completely form the experiment, and bring in a different token). We'll see what happens.

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 token gain was in CTP as per the rebalance purchase. If the CTP price rises again some time soon, then that will have been a nice purchase - heres hoping. In any case, it is an extra chunk of tokens that are now delegated to the curation account, which means I should see an increase in daily CTP DRIP income from the delegation going forward.

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:

Even though the total value dropped again, it was still a decent enough rebalance in general. The rebalance method worked, and it was clear to see that the delegations are working, even if they are only brining in small amounts at the moment. The delegation income will continue to grow, as the total number of tokens in the basket grows, which it does with each rebalance.

Even though the basket lost value in the period, it is still up nicely in value since the start of the experiment.

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 along with the catch-up in HIVE and HBD drips from the delegation to @heartbeatonhive, which was nice to see.
• The drop in price of PIMP, CTP and NEOXAG had the biggest (and only negative) impact, causing the overall basket value to drop.

So thats the 4 losses out of 11 rebalances now, with this one being the biggest loss since the start of the experiment. Thats expected to happen as the 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, which is happening.

It was great to see all 8 curation accounts paying out. In terms of the rebalance it was good to see 4 token prices up (allowing profits to be taken) and 4 token prices down (allowing more tokens to be bought at good prices). As long as that keeps happening, the total number of tokens will continue to grow.

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