Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 7th 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 (0.2 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) - #POB and #CENT worked out the best 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.

As can be seen in the table above, the basket value has fallen since the last rebalance due to the price of some of the tokens falling in value. 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. It was also good to see nice increases in POB and CENT as a result of using the #CENT and #POB tags in last weeks post.

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

Only 5 out of the 8 token delegation accounts paid out again this week (@bee-curator, @cent-curator and @ctp-curator didnt work), 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,
• There was also a little extra moved over from hive-wallet as I had received a small payout of HBD and HIVE from @heartbeatonhive since the last rebalance which was a nice surprise ! I have just counted it as being from within the last post payout, rather than doing the maths to figure out how much it amounted to,
• 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 quite a few tokens were down compared to the previous rebalance affecting the overall value of the basket. In addition when I started to make the rebalance adjustments, I got mixed up and sold some LEO and POB by mistake, when I should have actually been aiming to buy more. I looked at the green % cell and just assumed it was a sell, when it should have been a buy. The lesson learned on this was that I shouldnt do a rebalance with a hangover after I've been out drinking all night to celebrate new year !!!!!

However, I was able to buy some ALIVE at a nice price, and also added some CENT 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.

As can be seen, due to the drop in price of 5 out of the 8 tokens over the week, the total basket value went down by a small amount (0.241 HIVE) compared to the previous rebalance. That has to be expected, and its also ok - because the drop in prices allowed me to buy some more tokens at a reduced price which is a key principal of the rebalance method, and so it will help 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, and again we had different factors at play this week. The price drop in tokens lead to the first loss at a rebalance. But as said above, that is ok, and is expected to happen from time-to-time. And even though there was a loss - the total number of tokens still went up for 6 out of the 8 tokens, with the other two staying at the same number so that was good.

It was a little annoying that I made a mistake when I did the rebalance, although in the grand scheme it wasnt that bad a mistake - I only sold a small number of tokens, although at decent prices - so thats fine.

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 this week, and still wasnt quite enough to cover the loss due to the drop in the price of some of the tokens. It was nice to see the extra HIVE and HBD payouts from @heartbeatonhive, and also the CENT and POB token payouts for using the #CENT and #POB tags in the post.

But as said above, the rebalance method still worked as planned, as I was still able to buy extra ALIVE and CENT at reduced prices, which will help in the future, as the aim is to always be increasing the number of tokens.

As per the table above, this was the first loss recorded during a rebalance (1 out of 7), although it was quite small at 0.241 HIVE, noting that overall the basket value has increased by 9.581 since the start - so this weeks blip wasnt a big deal.

It is expected that there will be losses some weeks due to token price drops, and thats ok, as thats when the opportunity to buy more tokens at a reduced price comes up, which helps in the long run.

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