Hello Steemit,
due to the simplicity of the DORY portfolio, which is a part of the steemit.com exclusive PermaCryptoFolio experiment, we are already able to enter the first orders into Kraken exchanges orderbook.
Currently the DORY portfolio is well balanced, but there is a rebalancing rule which requires a rebalancing in the case that either the Bitcoin position or the USD position exceeds 60% of total value of the DORY portfolio.
Due to the simplicity of the DORY portfolio we are already able to calculate the Bitcoin price levels when this rebalancing will be triggered.
Scenario Bitcoin Bull market
The Bitcoin proportion reaches 60% of total portfolio value in case of a rise of the Bitcoin price. The rebalancing is executed when one Bitcoin is traded for $ 855.60. At this point we need to sell 0.08333333 Bitcoin to get $ 71.30.
The according order on Kraken exchange is
Scenario Bitcoin Bear market
The Bitcoin proportion reaches 40% of total portfolio value in case of a fall of the Bitcoin price. The rebalancing is executed when one Bitcoin is traded for $ 380.27. At this point we need to buy 0.125 Bitcoin for $ 47.53.
The according order on Kraken exchange is
One Kills Other
As soon as one of the both orders is executed, I need to delete the other order manually.
Now we are well prepared for any circumstances.
Thank you for reading!
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Best Regards,
twinner
Disclaimer
The author is already invested in all of the cryptocurrencies mentioned in this article. Nothing on this posting is to be taken as trading advice. Everything on this article is for educational purposes only. Trading cryptocurrencies carries a high level of risk, and may not be suitable for all investors. Read the full disclaimer in the comment section.
Disclaimer
The author is already invested in all of the cryptocurrencies mentioned in this article.
NOTHING ON THIS POSTING IS TO BE TAKEN AS TRADING ADVICE.
Everything on this article, including but not limited to: suggested trades, trade setups, and posting of "real-time" trades of cryptocurrencies by the author is for educational purposes only. This article is not an investment advice nor should it be construed as such. I strive for accuracy of charts and information, but make no guarantee of such.
By accessing any information on this post, you acknowledge you have read, understand, and agree to this disclaimer. Past performance of any cryptocurrency, trading system or methodology is not indicative of future results. The contents of this article is neither a solicitation nor an offer to Buy/Sell any cryptocurrencies.
Trading cryptocurrencies carries a high level of risk, and may not be suitable for all investors. Before deciding to trade you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
I do not and have not received any compensation from any cryptocurrency or cryptocurrency exchange that appears in this article.
Its risky to store cryptocurrencies long-term on a cryptocurrency exchanges. In case of a hack or in case of the bankrupty of a cryptocurrency exchange you can lose a part or in worst case your total cryptocurrencies investment. Whenever possible, withdraw immediately your cryptocurrencies from an exchange to your cold storage wallet (your keys = your coins, not your keys = not your coins).
There may be tax consequences for profits or losses on cryptocurrencies trades. Please consult your local tax advisor for details on this if applicable.