Bitcoin Portfolio Rebalancing to a Fixed Cash and Coin Ratio

Summary

This document describes a rules-based Bitcoin rebalancing method that maintains a chosen split between cash and coin value. After price changes, it calculates total portfolio value and trades enough Bitcoin to restore the target allocation. Its worked example starts with 10,000 yuan and a 30:70 cash-to-Bitcoin split, then shows how a price rise leads to selling part of the holdings; the same logic calls for buying after a price decline.

The accompanying implementation includes settings for using account balances or initial amounts, the target coin ratio, investment interval, retry delay, and slippage. It also tracks holdings and reports portfolio metrics. No performance results or backtest evidence are provided. The approach continually trades to maintain the ratio, so costs, slippage, and trading constraints may affect outcomes; the document does not specify safeguards such as a minimum rebalance threshold.

Key ideas

• The method adjusts Bitcoin holdings and cash to restore a fixed target allocation after price moves.
• A price rise above the target coin share leads to selling, while a decline leads to buying.
• The example illustrates the calculation using a 30:70 cash-to-Bitcoin allocation.
• The implementation exposes investment interval and slippage settings but provides no performance evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.