Spot Crypto Rebalancing with Threshold-Based Buys and Sells

Summary

This document describes a spot crypto strategy that seeks to keep the account value split roughly evenly between a coin and cash. It estimates the coin’s share of total account value from the latest price and account balances. When that share moves outside specified bands around the target, it buys or sells; larger trades are used when the share reaches wider thresholds. The example is configured for BTC/USDT and includes a historical backtest period, but it reports no performance results.

The strategy cancels open orders before checking balances and repeats the process on a short polling interval. Its trade size is based on one percent of account value, with a minimum quantity floor. The document says the account must be large enough for that percentage to meet the coin’s minimum order size. This is a simple rebalancing rule rather than a signal about market direction. Fees, slippage, order execution, and the effects of persistent price trends are not analyzed, so the supplied configuration alone does not establish profitability or suitability for live trading.

Key ideas

• The strategy targets an approximately equal value allocation between a spot coin and cash.
• It uses the coin’s share of total account value to decide when to buy or sell.
• Trades increase in size when the allocation moves farther from the target range.
• The example uses BTC/USDT and specifies a backtest period without reporting results.
• The account must support the minimum order size implied by the sizing rule.

Tags

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