A Crypto Rebalancing Strategy That Trades Around a BTC–USDT Balance
Summary
The article presents a rebalancing method for Bitcoin and USDT. It starts with roughly equal values in each asset, then uses price moves to adjust holdings: buy Bitcoin after declines and sell some after rises, aiming to keep the two sides near equal value. Worked examples illustrate the proposed effect of price movement followed by a recovery. The author then describes applying the approach with a Bitcoin-margined perpetual contract, using short orders to rebalance exposure and placing orders at planned price intervals.
The author reports a live run beginning in 2020, including a drawdown during a sharp Bitcoin decline and later gains, and attributes additional potential return to funding payments and maker rebates. These are self-reported historical figures, not an independently verified backtest or guarantee. The method remains exposed to market risk, fees, funding variability, execution conditions, and the assumptions behind its balance and order sizing; the claim of low liquidation risk depends on the described unleveraged setup.
Key ideas
- The spot method begins with approximately equal values in Bitcoin and USDT.
- It buys Bitcoin after declines and sells Bitcoin after rises to rebalance the holdings.
- The derivatives version uses short perpetual positions and planned orders at price intervals.
- The author cites personal live-trading results and funding income, without independent verification.
- Results may depend on volatility, fees, funding rates, execution, and leverage choices.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.