Thanks to @sethlouey and his post Rebalancing vs Buying in Top 10: $1,697,868.73 Profits!. Now, I want to give back as well!
To make rebalancing easy, I am sharing a spreadsheet tool I created, which has been working well for me the past few months. The spreadsheet makes it dead-simple to set your target crypto allocation percentages and perform an ongoing rebalancing strategy with little effort.
A one month rebalancing strategy will likely outperform a HODL strategy as shown in Seth’s backtest. But with the current volatility of the crypto market, I believe that an even more frequent rebalancing will achieve greater gains than a 1 month rebalance (i.e. weekly, or even daily, rebalancing would outperform a monthly rebalance, and definitely outperforms a simple HODL strategy). I don’t have backtesting data to prove the daily rebalance theory (would love it if someone could run this backtest), but I know from experience the spreadsheet has allowed me to take advantage of the daily swings without any emotion or thinking involved in my part. I simply log in to Gdax, Bittrex, Binance, etc, then buy and sell exactly the amount the spreadsheet tells me to.
One note: I usually only rebalance if the crypto asset is beyond a certain percentage away from the target. So for example, if the spreadsheet tells me to sell/buy $90 of Qtum, I usually hold off until the amount to buy sell is beyond, say, a $100 threshold (the small amounts aren’t worth the effort and potential extra fees).
Sheet 1 - Allows you to perform a custom rebalancing strategy on all or some of your crypto assets. This is the sheet I use, and it has the actual cryptos I own and target percentages I use just in case you were curious - though it does not have my actual dollar/holding amounts (I just made up those values for the template). My suggestion is to limit your “large cap” to 5 cryptos, and your “small cap” to 10 cryptos. I also include my HODLs and DCAs here as well so I can see everything with this one dashboard.
Sheet 2 - I just now created this sheet for the Top 10 rebalancing strategy mentioned in the @
sethlouey thread above (if you want to do that strategy instead). All target percentages are set to 10% and the current holding amounts I input are close to $1000 (it will vary based on what day you open this). You could choose to rebalance quarterly, monthly, or as frequently as you want.
Feel free to make a copy, edit/add your own cryptos, and improve upon it!
To make a copy: Click on File --> Make a Copy
To the moon!!!