Rebalancing Bot improvements
Nathaniel Hernandez
- Add the calculation for 'total coin growth APR' so people don't have to calculate it manually. After 24 hours running my first BNB/ETH rebalancing bot, I calculated (manually) that my total coin growth for the day was .074%...which if that growth continued for 365 days, then I would have about 27% more BNB/ETH coins in my bot. (But since it would be automatically compounding daily, then after 365 days, I could potentially have much more than 27% coin growth from my initial investment.)
- Make it clear what rebalancing threshold/period the 'dual-coin mode' uses. I noticed that the smallest threshold available on the 'multi-coins mode' is 0.25% but most of my 5-minute rebalancing transactions seem to be correcting deviations less than 0.25% and the bot is still quite profitable. I suspect that if 'dual-coin mode' uses a lower threshold than 0.25%, then there could be valuable transactions more often than every 5-minutes.
Nathaniel Hernandez
For high frequency trading purposes, threshold triggering should be customizable down to 0.001%.
Leona
Hello, Nathaniel Hernandez
Thank you for your professional and detailed suggestions!
1.Add the calculation for 'COIN BALANCE GROWTH %'
2.Dual-coin mode add Advanced settings like Multi-coins mode
3.Rebalance threshold can have more setting options(like 0.03% 0.02% )
Your three suggestions are very targeted, and we will implement them in Rebalancing Bot as soon as possible after our evaluation.
Nathaniel Hernandez
Leona: you can look at the coin balance growth data from my current bot that I have posted in the discord server channel #rebalancing-bot as well as my analysis.
Just to confirm, when I say 0.02% threshold rebalancing, I am trying to say rebalancing would trigger when the bot USDT balances are showing 49.98:50.02 --is that what 0.02% threshold rebalancing means?...or is that perhaps 0.04% threshold rebalancing?
Nathaniel Hernandez
Rebalancing Bot FORMULAS…please use these calculations to show users bot performance in terms of Coin Balance Growth (aka ‘Earning’ or ‘Mining’):
COIN 1 BALANCE GROWTH %: (Coin 1 Current Balance / Coin 1 Initial Balance - 1) x 100
COIN 2 BALANCE GROWTH %: (Coin 2 Current Balance / Coin 2 Initial Balance - 1) x 100
TOTAL COIN BALANCE GROWTH %: [(Coin 1 Current Balance / Coin 1 Initial Balance - 1) + (Coin 2 Current Balance / Coin 2 Initial Balance - 1)] x 100
COIN BALANCE GROWTH APR: [(Coin 1 Current Balance / Coin 1 Initial Balance - 1) + (Coin 2 Current Balance / Coin 2 Initial Balance - 1)] x 100 / hours running x 24 x 365
Nathaniel Hernandez
Based on watching the typical deviation from 50%:50% on a BNB/ETH rebalancing bot (that rebalances every 5 minutes), the most common 'large' deviation is 0.02% to 0.03%. Ever so often the deviation exceeds this, but it is much more rare.
Therefore, I figure that a BNB/ETH rebalancing bot would be most profitable if I was able to set a rebalancing threshold of 0.02% to 0.03%. Doing so should both increase the average size of each transaction AND increase the frequency of transactions significantly from just once every 5 minutes. Therefore, my portfolio would grow faster AND Pionex would earn more trading fees. It's a win-win.
Because every coin pairing would probably have its own 50:50 deviation tendencies, it would be best for users to be able to customize the rebalancing threshold that they prefer to use.
With a rebalancing threshold of 0.02% to 0.03% deviation from 50:50 when using BNB and ETH, my bot would probably be making a transaction at least every 30 seconds...so that would likely mean my coin balance would grow at least 10x faster than at current with rebalancing only once every 5 minutes. (At current, I am generating 0.074% coin balance growth per day or 27% coin balance APR.) HOWEVER, since auto-compounding is built into rebalancing bots, the coin balance APR should keep climbing as long as I don't withdraw funds.
If this is all accurate, then rebalancing bots are basically a 'cheat code' compared to the complexity of grid bots, DCA bots...and just about every other financial investment strategy.