Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 6th 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.

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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 weeks update (0.4 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) - there was a nice payout from BEE (#hive-engine) in particular this week,
• 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 again this week (same 4 as last week), which is a bit of a shame. However, I know node issues have been affecting things, and its usually the case that they will catch-up eventually anyway.

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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:

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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 apart from the dump in CTP (-28%) there was not a huge amount of movement in the price of other tokens since the last rebalance, and hence this wont have such an effect on the overall value this period. The purchase of CTP will help in the long run, but there was no standout gain as a result of one of the tokens increasing significantly in value during the period.

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.

As can be seen, PIMP is still too highly allocated, as a result of a mistake I made a few weeks ago when I bought too many, although that allocation is reducing each week. BEE is also over-allocated, due to the nice BEE payouts I've been having from using the #HIVE-engine tag which has worked particularly well (the best of the tags used so far). Again, it should balance out over time.

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:

Its turning out to be really interesting each week, because there are so many methods being used, and you never quite know which one will have worked the best in any particular week. This week the surprise was the BEE payout from the post for using the #hive-engine tag. Thats the second time that its happened, and its made quite difference to the amount of BEE held each time.

It was also great to see 7 out of the 8 tokens grow in number again. PIMP didnt, because all liquid PIMP got sold as it was the only token for which the price had risen during the week, and as such all of the liquid PIMP available got sold as part of the rebalance.

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 this week, adding just over half of the increase in value, followed by the BEE payout from the post. The other methods didnt contribute so much - but they still contributed something.

Its also interesting to note again that the value of the basket of tokens has increased at every rebalance so far (6 out of 6). It wasn't a huge increase this week, but I'll always take an increase over a decrease.

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