AI Rebalance product FAQ

Frequently Asked Questions

1. What is AI Rebalance strategy?
   AI Rebalance is an investment strategy that combines multiple coins into a single position and adjusts the position according to predefined rules to bring the position of each currency back to its initial ratio during volatile market conditions.
   
   As the market changes, the system will automatically sell tokens with higher positions and buy tokens with lower positions when the position ratio exceeds the adjustment threshold, eventually bringing the position ratio of each currency in the asset combination back to the initial setting and generating long-term arbitrage gains in the process.
   
   
2. What is the trading strategy of AI Rebalance?
   a) Assuming a smart position with a asset combination of 3 digital assets and a 5% transfer threshold.
   
   ONE: position share of 40%, position amount 400 USDT.
   BTC: position share of 30%, position amount 300 USDT.
   ETH: position share of 30%, position amount 300 USDT.
   
   b) As the price of the tokens fluctuates, the percentage of positions in each token in the combination will change. Assuming that the price of BTC and ONE rises and the price of ETH falls over a period of time, and the change in the position share is greater than or equal to the position adjustment threshold, the positions in the portfolio become
   
   ONE: position share of 40%, position amount 480 USDT.
   BTC: position share of 40%, position amount 480 USDT.
   ETH: position share of 20%, position amount 240 USDT.
   
   c) At this point, 120 USDT of BTC will be automatically sold and the USDT from the sale of BTC will be used to buy ETH, returning the combination of positions to the initial setting of
   
   ONE: position share of 40%, position amount 480 USDT.
   BTC: position share of 30%, position amount 360 USDT.
   ETH: position share of 30%, position amount 360 USDT.
   
   *The above calculation process excludes transaction fees.
   
   The rotation is repeated in the above manner. The advantage of a AI Rebalance strategy over holding a token is that you can set equilibrium conditions that do not depend on the fluctuating returns of a single token going up or down in magnitude, and take advantage of the fluctuating exchange rates between tokens to rotate arbitrage and ultimately make a profit.
   
3. Why should I use AI Rebalance strategy?
   If you are bullish on multiple currencies at the same time and are willing to hold them for a long period of time, then the AI Rebalance strategy will help you diversify your risk. By constantly adjusting your positions for both ups and downs, AI Rebalance can help you avoid large fluctuations in returns due to sharp market volatility.
   
   When a token rises strongly, the gains are allocated to other digital assets in the combination by shifting positions, allowing the combination to rise relatively smoothly. When the market falls, the combination of positions can fall by less than the fall of a token, achieving relatively smooth returns.
   
   
4. What types of investors are AI Rebalance strategies suitable for?
   Investors who want to hold multiple currencies for a long period of time but are unable to accurately judge the timing of buying and selling these currencies, and also want to arbitrage in volatile markets to reduce the dramatic fluctuations in returns, this type of investor is recommended to use the AI Rebalance strategy, which not only solves the above problems, but also saves the time of keeping an eye on the market and eliminates the hassle of manual trading.
   
   
5. What is the rebalance condition?
   Rebalance condition is the rule according to which positions are adjusted to maintain a dynamic balance of positions, and there are two types of rebalance conditions for BigONE AI Rebalance, by ratio or by time.
   
   
6. Can I add/reduce the number of currencies, adjust the currency ratios and balancing methods while the strategy is running?
   Yes, you can. In the on-going strategies, click on the small tabs next to the currency ratios and balancing methods to make adjustments.
   
   
7. Can I increase the investment amount when the strategy is running?
   Yes, you can. In the on-going strategies, click on the small tab next to the amount invested to increase the amount invested.
   
   
8. Why did the currency become smaller after using AI Rebalance?
   When the strategy is running, the system is constantly balancing the position, selling one token and buying another in the process, so if the number of one token becomes smaller, the number of another token will definitely increase.
   
   

9. Why is there only a sell record and no buy record in the balance transaction record of AI Rebalance strategy?
   This is normal for strategies with small investment amounts. When the price of the currency fluctuates rapidly, it may happen that after selling the currency, the amount used for buying cannot meet the minimum order amount and therefore cannot buy the currency again. When the minimum order amount is reached, trading will be resumed when the balance condition is reached again. The minimum order size for BigONE is 10 USDT.

   Translated with www.DeepL.com/Translator (free version)

Explanation of terms

1. Add tokens: Add tokens to the combination, at least 2, up to a maximum of 10 tokens are supported.
   
   
2. Ratio: Configure the ratio of each token's position, i.e. the value of each token's position / the total value of all tokens in the portfolio.
   
   
3. Rebalance by ratio: when the ratio of any token changes by more than or equal to the preset value, the position is adjusted so that the position ratio returns to the initial setting.
   
   
4. Rebalance by time: positions are rebalanced at regular intervals to bring the position back to its initial setting.
   
   
5. Stop profit Ratio: Automatically stops the strategy and sells all tokens for USDT when the current yield is ≥ a certain percentage.
   
   
6. Stop Loss Ratio: If the current yield is ≤ a certain percentage, the strategy will be automatically stopped and all tokens will be sold for USDT.
   
   
7. Balance count: The number of completed position transfers.