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Crypto Portfolio Rebalancing Goes on Autopilot

Investors in traditional finance have long used automated strategies to rebalance their investment porfolios as a way to reduce investment risk while profiting from volatility. Setting up a rebalancing automation was once a tedious task for traders, but now Quadency makes it easy to automate your digital asset allocations with the Portfolio Rebalancer.


What is Portfolio Rebalancing?


Simply put, rebalancing a portfolio means re-distributing your asset allocations periodically over time. For this purpose, investors continually buy or sell assets in a portfolio to maintain their desired levels of asset allocations.

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In a market with constantly evolving prices like crypto, traders often manage their risk by re-investing profits from high performing investments into stablecoins or other assets when they anticipate a price increase.

Introducing the Portfolio Rebalancer


The Portfolio Rebalancer is the latest new bot available in our growing library of pre-built strategies. Whether you want to build a diverse portfolio or liquidate all your digital assets in favor of one, execute automatically and with ease.

To configure your bot:

  1. Select the desired assets and set their respective allocations.
  2. Define the interval: hourly, daily, weekly, monthly, or one-time.
  3. Select the threshold.
The bot will trade for you at the selected interval if an asset reaches the rebalancing treshold.

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Rebalancer Strategy Examples


While easy to set up for simple rebalancing, this powerful tool also enables traders to execute more sophisticated automation strategies.

Build your Investment Portfolio

You just connected a new account from a supported exchange and want to quickly build your portfolio. Slow, tedious, manual trading is a thing of the past with Quadency's "Rebalance Only Once" option. Simply select your top 10 (or less) preferred asset allocations and start the bot live.

Liquidate all your assets into one, or 'Sell All for X'

As experienced investors know, day trading and automation can bring many short term investments in various assets into your portfolio. Let's say that at the end of the day/week, you want to secure your profits before your next trading session. The Rebalancer can help by instantly liquidating all of your assets into a stablecoin, BTC, or any lower volatility asset.

Beat the volatility

The Portfolio Rebalancer can also be useful in times of larger price action, helping you catch and take advantage of market swings by rebalancing hourly. Like all of Quadency's available automation strategies, this can help you maximize return and mitigate risk while away from your trading terminal.

Manage your mining rewards

Many Quadency traders use the Rebalancer to more efficiently manage their mining rewards with automatic re-allocation of reward payouts periodically. For example, you can have your rewards automatically swapped for stablecoins, or distribute them into different crypto assets to diversify your portfolio.

Is it Right for You?


When trading crypto, investor options range from the simple buy and hold to more advanced, active trading. HODLing is of course common when anticipating price increases, but this passive strategy fully depends on market movement, providing little to no risk mitigation for downturns.

Rebalancing allows you to create a larger holistic portfolio strategy regardless of your individual trading of particular assets. The rebalance of the portfolio occurs when an asset's allocation drops below or moves above a predetermined threshold, protecting investors from being fully exposed to price drops. While it may limit potential profits, it effectively helps minimize risk if used correctly.

Summary


Portfolio rebalancing offers many advantages compared to simply holding your crypto, and Quadency's automated strategy makes it easy to minimize risk by rebalancing your portfolio periodically. One popular use is to instantly liquidate all your assets into one, such as a stablecoin or BTC.

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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.

Disclaimer: The content of this article is for general market education and commentary and are not intended to serve as financial, investment, or any other type of advice.