Why do you need a Rebalancing Bot?
If you are optimistic about multiple coins simultaneously and willing to hold coins for a long time to gain value appreciation, you can use the rebalancing bot.
What is the trading strategy of the Rebalancing Bot?
Suppose you have 100 USDT and choose BTC and ETH to create the rebalancing bot, and the bot will allocate your position at a ratio of 1:1. That is, the bot will buy 50 USDT of BTC and ETH each according to the real-time prices of BTC and ETH. The bot will monitor every 5 minutes by default, adjust the position according to the exchange rate fluctuations between the two coins, and ensure the position ratio is always maintained at 1:1.
When the value of your BTC has risen to 60 USDT, but ETH has not changed much with 50 USDT. Still, the rebalancing bot will sell 5 USDT of BTC and buy 5 USDT of ETH to keep the position ratio at 1: 1. Currently, your BTC position is 55 USDT, and ETH is 55 USDT.
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 to earn coins.
How to Create a Rebalancing Bot
Choose bot
Open Webot.com log in to your account first, and then click on the [CREATE] button on the right-hand side of the rebalancing bot. Two modes will pop up on the page: [Dual-coin mode] and [Multi-coin mode].
Dual-coin mode
In the “Dual-coin mode”, you can allocate two coins simultaneously, and it supports “Spot” coins.
It is recommended to choose popular coins, such as BTC or ETH.
When the two coins are selected, you can decide how much funds can be invested to start the rebalancing bot.
In the “Dual coins mode“, the allocation ratio of the two coins is 1:1 by default. When the exchange rate between these two coins fluctuates, the bot will automatically balance the real-time ratio of the two coins to 1:1.
Steps to create
Multi-coin mode
In the “Multi-coin mode”, you can allocate up to 10 coins, and it supports “Spot” coins. You can freely set the % proportion of each coin.
Below the manual setting page is the advanced setting area. We provide several parameters for you to choose from.
Trigger price: You can set the trigger price for one or more coins. When any coin reaches its trigger price, the rebalancing bot will be created and start to run.
Rebalance: 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 turn on rebalance, there are two rebalance modes for you: Periodic and Threshold.
Rebalance mode: 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 time interval.
When you choose “Threshold“, when the proportion change of any coin is greater than the set % value, the bot will rebalance the assets.
Bot parameters
Total profit: (Current number of currency holdings * current price) – investment amount – accumulative trading fee
Transactions: The number of transactions that the bot rebalancing
Next Rebalancing: When the setting of the rebalancing condition is 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 low, you can 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’s price fluctuates rapidly, it may appear that after the bot has just sold, it may no longer be able to buy due to the minimum order value 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” – “Parameter” – “Rebalance mode” buttons 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 “Edit/Stop“ → “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 investment to the rebalancing bot?
A： You can increase your investment by clicking the “Edit/Stop” → “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 “Edit/Stop“ → “Change coins” button of the rebalancing bots.
Q： What is the minimum investment for rebalancing the bot?
A： To make the rebalancing bot operate normally, the minimum investment required for a single currency here is 100 USDT. For example, when you select 2 coins, the minimum investment to start the bot is 200 USDT.
Q： Why do my coins become less after using the rebalancing bot?
A： When 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 simultaneously. So when you find that the number of a certain token in the bot’s position is decreasing, the number of other tokens in the bot’s position must increase. If you run the rebalancing bot for a long time, you will observe that the number of all currencies the bot holds 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%)