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 (0.1 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) - this worked particularly well for BEE this week, increasing my BEE holding by just over 40% !,
- 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:
5 out of the 8 token delegation accounts paid out this week. 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. Those that didnt seem to payout this week were @cent-curator and @ctp-curator. I dont think @heartbeatonhive paid out either this week - but I could be wrong on that one - but if it didnt, then I'm sure it will catch-up.
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 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 PIMP going down another 12.5%, and NEOXAG going up 24% (and BEE also having a nice wee gain of 5%). Its when we see nice changes like that the rebalancing should have a good effect. I didnt have a lot of liquid NEOXAG to take full advantage of the pump there. I did manage to sell a small amount in order to take a very minor profit there, although there was a large gap in between the NEOXAG selling and buying prices so it wasnt so effective. However, I stuck to the plan, and booked that profit. I was also able to sell the small amount of BEE noted, and took that profit too. Those profits were then used to buy more of the other tokens needed to make the rebalance.
I didnt have much more to spend on buying this week, as last weeks post payout was low - but hey, thats how this works, and you can only use what you have at your disposal, and I'm ok with that. But, I was able to buy the LEO amount noted and 133 of the CTP noted - so thats all good !
The PIMP figures above may look odd but thats because I bought too much the week before by mistake, and it will take another week or two for that to balance out. I didnt sell the 24 PIMP noted, as it would have compounded the mistake I made last week and made it even worse. So I'll just wait for that to catch-up and even out.
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 this week !). Although in general, from week-to-week it should 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.
The main thing is that there were token gains in all 8 target tribe tokens - so I cant really complain about that, even if the gains were small.
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:
Looking at the table above, its interesting to see that after 29 days, the value has doubled (nearly exactly !). Now to be fair, most of that is down to post payouts, and particularly from 2 weeks ago, but thats ok, as that is also part of the equation.
I was actually quite interested to see how things would turn out this week as I knew the post payout was going to be relatively small and as such, it wouldnt completely overshadow gains from elsewhere. The post payout only accounted for $0.263 of the gain, where as the increase in value in the week was $1.404, largely due to the pump in NEOXAG. If I'd had enough liquid NEOXAG to fully take profit from that pump during the rebalancing, then it would have been great. However, that should get better each time as the overall basket value increases and the weekly curation accounts payments get bigger.
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.
So its only the fourth week and the fourth rebalance, and it is pretty clear that its working. I'm certainly finding it very interesting each week when I check in and do a rebalance, as you dont quite know what has really happened until you do the figures. The larger than expected post payout for BEE was a real surprise, along with the nice pump in the price of NEOXAG. Its great to see that you can combine all of these methods, and that they will work together to give even more gains.
Doubling the value within 4 weeks of starting was a surprise (although mostly down to post payouts), and now I'm wondering what will happen in the next 4 weeks !
I'm already looking forward to checking in to do 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:
