Rebalancing your portfolio is related to adjusting the weightings of different assets within your portfolio. This is an essential process as it allows you to work on protecting your funds.
It is a process that professional traders regularly conduct to bring a portfolio back to its target asset allocation. It makes sense to take profit on assets that are performing well and re-allocate those profits into assets that are on a dip.
How can you rebalance your portfolio?
You can automatically rebalance your crypto portfolio using Coinrule’s RSI Rebalancing Bot. This rule spots oversold coins in your wallet and buys these periodically whilst selling those overperforming.
The RSI, or relative strength index, is a technical indicator frequently used in trading. It works by measuring the speed and change of price movements to determine whether a coin is oversold (indicating a good entry point) or overbought (indicating a point of exit/entry for a short position).
The RSI oscillates between 0 and 100 and is traditionally considered overbought when over 70 and oversold when below 30. Essentially an overbought coin is considered more expensive than it should be, and an oversold coin is considered cheaper than it should be.
When the RSI of a coin reaches these two key levels, it indicates that it could be primed for a trend reversal, marking a good potential entry/exit point.
The bot finds the perfect moment to buy the dip, where it can automate your trade to help you time your entry to minimize further downside when buying the dip.
What else does Coinrule provide?
In addition to the RSI bot, Conirule has a wide range of methods and strategies that may help you strengthen your portfolio.
Other numerous trading bots can help make a portfolio greater by using methods such as Bollinger bands, catch the falling knife, buy the best coin, and many other strategies. They have trading bots that use MACD/DMI, grid trading, RSI, rebalance, RSI, scalping, and several more approaches.
Traders who don’t know where to begin may choose from more than 180 pre-built trading templates on the Coinrule platform. Aside from that, the technology provided by the platform delivers real-time customer service and allows users to evaluate rule performance based on past data.
You may test your approach using detailed backtesting data and trade all day long with Coinrule.
Conditional statements are a feature of the Coinrule. Using the IFTTT (If This Then That) idea, users may designate a comprehensive set of actions to be carried out in response to certain situations.
When it comes to designing and deploying trading strategies, Coinrule is more like a collection of Lego-like tools.
Indicators from the Conirule, such as the RSI, and other strategies, might be useful in identifying entry opportunities with high likelihood. This tool’s ideas will help you build a more solid portfolio and make the best possible investment choices in the long run.
RSI bots’ most essential characteristic is that they will make things simpler without demanding round-the-clock human supervision but merely periodic inspections.
When it comes to cryptocurrency trading, bots are your most lucrative choice for making smarter decisions and avoiding expensive errors. Yet, in the end, it all comes down to one’s own feelings about what is better for their portfolio.
T lives in San Diego and is editor in chief of CryptoCoinDaddy. He got into cryptocurrency four years ago and has never looked back. He is 90% crypto,