Rebalancing Bot

Why do you need Rebalancing Bot?

If you are optimistic about multiple coins at the same time, and are willing to hold coins for a long time to gain value appreciation, you can choose to use the rebalancing bot.

What is the trading strategy of the Rebalancing Bot?

Suppose you have 100U and choose BTC and ETH to create the rebalancing bot, the bot will allocate your position at a ratio of 1:1. That is, the bot will buy 50U of BTC and ETH each according to the real-time prices of BTC and ETH. The bot will monitor every 5 minutes by default, and adjust the position according to the exchange rate fluctuations between the two coins, and maintain the position ratio always being maintained at 1:1.

When the value of your BTC has risen to 60USDT, but ETH has not changed much, with 50USDT still, the rebalancing bot will sell 5USDT of BTC and buy 5USDT of ETH to keep the position ratio at 1:1. At this time, your position of BTC is 55USDT, and ETH is 55USDT.

Compared with the strategy of holding the coins, the strategy advantage of the rebalancing bot is that it can set the bot’s rebalance conditions, and use the exchange rate fluctuations between the tokens to carry out rebalance arbitrage, so as to achieve the purpose of earning coins.
 

How to create a Rebalancing Bot

App:

Step 1: Open the Picol app, then click on [Bot] - [Create] - [Spot] to access the spot trading bot section, and choose the [Rebalancing Bot].

Step 2: Click [Add new coins], choose the coins you wish to add to the bot, and then click [Confirm].

Step 3: Enter the investment amount, click [Create], review the confirmation details, and finally click [Confirm] to create your bot.

Web:

Step 1: Click [Spot] in the top left corner, select [Trading Bot], and then choose [Rebalancing Bot].

Step 2: Click [Add new coins], choose the coins you wish to add to the bot, and then click [Confirm].

Step 3: Enter the investment amount, click [Create], review the confirmation details, and finally click [OK] to create your bot.

Coin Allocation and Advanced Settings

You can allocate up to 20 coins, and the bot supports “Spot” and “Leveraged” coin selections. You can freely set the position proportion of each coin. It is recommended that everyone choose mainstream coins of spots, such as BTC or ETH. However, the leveraged tokens are high-risk derivatives; please be careful while selecting them. Below the manual setting page is the advanced setting area. We provide several parameters for you to choose.

• Trigger price: You can set the trigger price for one or more coins. When any one coin reaches its trigger price, the rebalancing bot will be created and start to run.

• Take profit percentage: When the "Total Profit" rate reaches the set value, the bot will immediately close and sell all coins at the market price to take the profit.

• Stop loss percentage: When the "Total Profit" rate declines to the set value, the bot will immediately close and sell all coins at the market price to mitigate further losses. Note: Since stop loss executes as taker orders, the actual loss rate can exceed the rate you entered due to extreme market conditions or slippage.

• Slippage Control: Slippage control will make your average cost closer to the expected price, especially in volatile markets. You can also manually adjust slippage settings during the opening process. Turning off slippage control will result in execution at the market price.

• Automatic Rebalancing: You can choose to turn off rebalance (the bot stops running, holding the coin and being unchanged) or turn on rebalance (the bot starts to run and keeps the proportion of each coin constant through rebalance). When you choose to turn on rebalance, there are three rebalance modes for you to choose: Periodic, Threshold, and Momentum Rebalancing.  When the coin’s price changes, the value of each coin will deviate from the preset ratio. At this time, it is necessary to rebalance the assets to restore the proportion of each coin to its original state.

• When you choose “Periodic“, the bot will rebalance the asset ratio at a fixed interval.
• When you choose “Threshold“, when the proportion change of any coin is greater than the set value, the bot will rebalance the assets.
• When you choose “Momentum Rebalancing“, the bot automatically shifts your portfolio toward the assets showing the strongest recent performance. It aims to capture gains from upward-trending assets while reducing exposure to underperforming ones, helping to maximize potential profits in a dynamic market.

Bot parameters

Total profit: (Current number of currency holdings * current price)-investment amount-accumulative trading fee

Transactions: The number of transactions that the bot rebalances

Next Rebalancing: When the setting of the rebalance condition is completed/triggered, the next rebalance will start

FAQ

Q: When is the suitable time to create a rebalancing bot?
A: You can turn on the rebalancing bot while the coin's price is relatively low. If you can’t judge whether the current price is at a low level, you can choose to open positions in batches by several rebalancing bots, and then wait patiently for the market to rise.

Q: Why does the rebalancing bot have only a record of selling but no record of buying?
A: This situation often occurs in orders with a small investment. The bot will conduct buying and selling transactions during the rebalancing. When the coin price fluctuates rapidly, it may appear that, after the bot has just sold out, it may no longer be able to buy the spot due to the minimum transaction accuracy of the coin. This situation is completely normal, so you don’t need to worry about it.

Q: Can the rebalance condition be modified during the operation of the rebalancing bot?
A: You can click the “Detail”-“Trade”-“Rebalance mode” button on the rebalancing bot to modify.

Q: Can I withdraw investment from the rebalancing bot?
A: Rebalancing bots hold spot assets, and all profits are in the form of unrealized profits. You can perform operations by clicking the “· · ·“ -> [Withdraw investment] button on the rebalancing bots. When you reduce your position, the principal and profit will be released in equal proportions.

Q: Can I add an investment to the rebalancing bot?
A: You can increase your investment by clicking the “· · ·”-“Add investment” button on the rebalancing bots.

Q: Can the currency position ratio or currency type be modified during the operation of the rebalancing bot?
A: You can do this by clicking on the “· · ·“ -> [Change coins] button of the rebalancing bots.

Q: What is the minimum investment for the rebalancing bot?
A: In order to make the rebalancing bot operate normally, the minimum investment requirement for a single currency here is 100USDT. For example, when you select 2 coins, the minimum investment to start the bot is 200USDT.

Q: Why do my coins become less after using the rebalancing bot?
A: When you are using the rebalancing bot, the bot will balance the exchange rate fluctuations of different tokens. In this process, some tokens will be sold, and some tokens will be bought at the same time. So when you find that the number of a certain token in the bot’s position is decreasing, then the number of other tokens in the bot’s position must be increasing. If you run the rebalancing bot for a long time, you will observe that the number of all currencies held by the bot will increase.

Q: What is the trading fee of the rebalancing bot?
A: The rebalancing bot is free to use, and only transaction fees are collected here (the spot trading fee rate is 0.05%, and the leveraged token trading fee rate is 0.1%).