Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 5th 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 the week, 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 weeks update (0.5 ALIVE !),
• Tribe tokens gained from tagging the relevant tribes in the previous weeks post (using the tags; #leofinance, #aliveandthriving, #pimp, #pob, #cent, #neoxian, #inleo, #hive-engine, #tribes, #hive),
• And, tokens gained from delegation of the tribe tokens held.

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.

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

Only 4 out of the 8 token delegation accounts paid out this week, which is a bit of a shame. I'm happy with that as I know node issues have been affecting things, and its usually the case that they will catch-up eventually anyway.

---

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,
• All other tokens in hive-engine that are not part of the experiment were sold.

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

The table above also shows the price change in the week. As can be seen there were some fair differences again, with CTP up a whooping 41%, PIMP up 18%, POB down 11% and NEOXAG down 27%. Its when we see nice changes like that the rebalancing should have a good effect. I didnt have a lot of liquid of LEO, PIMP or CTP to take much advantage of the selling side of things, but I was able to purchase all of the NEOXAG needed. But I did manage to sell a few tokens, so some profit was booked (not much) and I was able to take advantage and buy NEOXAG at a nice low price.

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 this week !). Although over time it 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 week, 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.

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:

I was quite surprised at the increase in value this week. So far the previous weeks post payout has had about the biggest impact to the change in value each week. This week that was not the case, with last weeks post payout only accounting for about 30% of the change in value, which means that the other methods are working. In particular it was the rebalancing method that was working well -but over time, as a lot of the change in the value was from the increase in the price of a few of the tokens - which have been growing over the weeks due to the rebalance method.

The table above attempts to summarise how the various methods have worked in the week, 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.

Its only the fifth week and the fifth rebalance, and it is pretty clear that its working. Its been really interesting so far because the change in value from week-to-week can be due to different effects. This weeks pump in PIMP and CTP really helped, along with the dump in NEOXAG allowing a decent chunk of those to be bought at a nice price during the rebalance.

Its also interesting to note that the value of the basket of tokens has increased at every rebalance so far (5 out of 5). I cant believe that that will continue to happen at every rebalance, but heres hoping that its an indication of how well this is working.

I know that the weekly increase of 1.195 HIVE is quite insignificant, but this is an experiment, and I'm really enjoying doing it each week. And as usual I'm already looking forward to doing next weeks rebalance !

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