What are the rules applied in portfolio rebalancing?
Basic use case
Considering a portfolio with a $100 investment.
By rebalancing the percentage of one of your coins, for example, from 10% to 15%, a buy order for $5 of that coin will be created.
And later rebalancing from 15% to 10%, a $5 sell order will be created.
Alternative use case #1
Considering a portfolio with a $100 investment.
Considering the minimum order amount of $5 (minNotional) for buying or selling a coin on the exchange.
If there is a rebalance from 10% to 13%, $3 of that coin should be bought. As the minimum order amount is $5, the total of 10% ($10) previously purchased will be sold, and then a buy order of $13 will be made, to reach the 13% requested.
Alternative use case #2
The leader of a portfolio can have an investment higher than his followers, and this can lead to desynchronization for the follower.
For example, consider a leader investing $1000 and a follower investing $100.
The amount of 1% of a coin will be $10 for the leader and $1 for the follower.
At the time of the first buy order, the leader's portfolio will be able to acquire $10 of this coin, as the order amount is greater than the exchange's supposed minimum of $5 (minNotional). But buying $1 for follower will not be possible.
In this situation, the follower's portfolio will be in a desynchronized state, and a message of "Minimum purchase 5 USDT" will be shown next to the coin in the portfolio card.
Additionally, an alert will be shown in the header of the card with the message "Sync issues. Click to fix."
Clicking on this link, a window will be opened with the treatment options. In this case, you will have the option to increase the investment amount, and also a button with a generic action of "Synchronize with the leader". This will adjust the follower's portfolio to have the same percentage of coins as the leader, making buy and sell orders.
Important rules
- For any rebalancing, buy or sell orders will be created only if that change exceeds the minimum amount of $1. Otherwise, there will be no change in the portfolio's coin.
- It is imperative that the follower has USDT available in his wallet on the exchange so that any new DCA contributions by the manager can be synchronized.
If the follower doesn't have USDT in the wallet, he will get a synchronization warning until USDT is allocated and he will be able to synchronize.
Example: Considering an investment of $100, if the follower misses two DCA investments of $10 due to lack of USDT, what happens when he allocates USDT in the wallet and clicks resolve?
Adding USDT and clicking to sync will directly increase to $120 in one go.