Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 12th rebalance - a nice rise in CTP

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).

I've also started to use Inleo for posting updates, as that should also provide a small boost to the amount of LEO token income, which is one of the 8 targeted tokens in the experiment.

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 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 rebalance post (0.2 ALIVE !),
• Tribe tokens gained from tagging the relevant tribes in the previous rebalance post (using the tags; #leofinance, #aliveandthriving, #pimp, #pob, #cent, #neoxian, #inleo, #hive-engine, #tribes, #hive) - NEOXAG was about the most notable in the period,
• And, tokens gained from delegation of the tribe tokens held. This worked OK - two of the accounts didnt payout, which may have been related to the node issues.

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. That may start happening quite soon, which will be exciting !

As can be seen in the table above, the basket value has jumped by around 25% since the last rebalance (by ~5.5 HIVE). This was mainly due to a large rise in the price of CTP (440%). CTP had been falling considerably over the previous so many rebalances, and accordingly, the rebalance calcs had dictated that this was the cheapest token to buy. As such, I had loaded up on it quite a bit, and now with a nice increase in price, it has had a significant impact to the overall value of the basket. That demonstrates exactly how the rebalance method is meant to work, so I was pretty happy with this result.

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

Only 6 of the 8 curation accounts paid out in the period. This happens from time-to-time, and they normally catch-up, so it should be ok.

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. The last post hadnt done so well, and as such those only amount to 0.07 SWAP.HIVE - the lowest amount to date,
• And, selling off other layer-2 tokens, of which there were a few to sell (for not much value- but it all counts).

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 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 4 of the 8 tokens in the basket had dropped in value, but this was dwarfed by the massive jump in the price of CTP. I didnt have much liquid CTP to sell, which was a shame, but I was still able to buy some POB at a discount price, so that was fine.

I had been concerned about the price of CTP dropping so much on previous rebalances that I was wondering if the token was heading towards being dead. I'm not quite sure what is going on with it, so we'll just have to see if this rise is just transitory or not. Here's hoping that its not dead.

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.

The main token gain was in POB as per the rebalance purchase. A few NEOXAG were also added, which I think was mostly the result of tagging within the post..

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:

This has been the best rebalance to date, with the actual rebalance method giving the majority of the increase in basket value seen, so thats really great. As said above, as long as CTP doesnt just dump again, then it will have worked out pretty good !

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 from HIVE normally dominates any increases in value, but as can be seen it was significantly overshadowed by the change in basket value as a result of using the rebalance method over the previous weeks, which was great to see.

So it was great to see another gain, noting that there had been 4 losses in the last 5 rebalances (which were all largely down to CTP dropping in value). It was great to see the rebalance method working over time and increasing the basket value this time. Heres hoping we can see more rebalances like this going forward.

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

Posted Using InLeo Alpha