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.