Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 15th rebalance - A very minor loss due to drops in token prices

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.

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Rebalance Update

This is a standard update following a rebalance of the account. ** If you want the short version - skip to the summary section (section 10) at the bottom !**

1 - Starting Position (change in basket value since the last rebalance before doing anything)

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 (none for this rebalance),
• 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) - the most notable gain was for NEOXAG, although it was pretty small,
• And, tokens gained from delegation of the tribe tokens held. This worked OK - two of the accounts didnt payout, but the other 6 did
• I should start to also get some tokens from HP delegation which I've now started, but I dont think I've delegated enough yet for that to kick-in.

As can be seen in the table above, the basket value decreased by a small amount (~0.216 HIVE) due to the drop in price of CENT (-27.93%), LEO (-13.89%), CTP (-10.73%) and POB (-1.84%) since the last rebalance. This wasnt too bad considering that a number of layer-2 tokens have been getting hit quite hard of late, so I'm happy that the loss was quite small.

2 - HP Delegations

In the future, there may also be some income from HP Delegation. I didnt get much from my last post payout, so I didnt have any additional HP to delegate this time.

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

6 accounts paid out in the period (for LEO, PIMP, BEE, POB, CENT and NEOXAG). I have now changed the accounts used for delegation for ALIVE (to @gestion.alive) and CTP (@lolz.ctp) as the previous accounts I was using were not paying out.

@gestion.alive should pay out in ALIVE (thanks to @tydynrain for the tip-off on this one). I'm hoping @lolz.ctp will payout (a number of curation accounts for CTP have stopped now that the token is having issues). If it does payout, it will likely be in LOLZ, which is fine. As per the rules of the experiment, I was sell that during each rebalance to fund more of the 8 x target tribe tokens. I'm looking forward to seeing how these two new accounts work out !

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3 - 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 - it was quite a poor payout so this only contributed 0.197 HIVE (but it all counts),
• And, selling off other layer-2 tokens, of which there was very little to sell (0.004 HIVE worth this week !).

That gave a new basket balance of:

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4 - 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 second from 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. LEO was over allocated due to its increasing price so I sold what liquid I had to fund purchases. PIMP had a little rise since the last rebalance, so I also sold what spare liquid tokens I had for that. I then used the small amount of spare SWAP.HIVE I had to buy some CENT, as it had the highest drop in the period, and hence was at the best purchase price.

5 - Actual Rebalance Result

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.

So the rebalance worked fairly well I'd say even if it was only for small amounts. It was good to be able to sell some LEO and PIMP at good prices, and then pick-up CENT at a bargain price, so the method worked as it should.

That completes the rebalance process for this period.

6 - Summaries

The following table presents the summary for this rebalance:

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

So overall there was a small loss of just 0.024 HIVE - I can live with that under the current layer-2 market conditions !

**7 - Method Assessment **

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 previous post payout dominated the gains, but the decrease in the price of LEO, CENT and CTP in particular overshadowed any gains causing a slight loss overall.

8 - Change in Basket Value

So this rebalance chalked up a very small loss, which is fine.

9 - Gain/Loss Assessment

I've updated the gain/loss assessment. Its showing both CTP and CENT as being the leading tokens for contributing losses to the basket. CTP I'm not surprised about due to the problems the token has been having of late. Here's hoping CENT is ok and will recover a little at some point (if it does, I'll be laughing because I've been buying it on the dips).

10 - Summary

So an overall loss of just 0.024 HIVE is totally fine under the current market conditions. However, its also worth remembering that the rebalance method did its job and allowed more CENT to be purchased at a good price, with an overall increase of 178 CENT tokens giving a new total of 979 (compared to 246 at the start of the project). Its good to see these building up, and as long as the CENT curation account pays out (which it has been), and the price does see some increases at some point, then all will be good.

It was also good to try 2 x delegation accounts for ALIVE and CTP. Hopefully these will work out and start contributing from the next rebalance onwards.

Other than that, I'm hoping to be able to increase my HP delegation to the point where it will start to help with the token count, but I'll need some better post payouts going forward to make that happen.

All in all, its still very interesting, and in general seems to be working, even if its all for very small values currently.

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