rebalance

Threshold tuning matters more than people assume. 📊

Same BTC/XRP 50/50 rebalance strategy, same 51-day window (Jan–Feb 2025), three different ratio thresholds:

Variant A (0%/N/A): 77 trades → 18.42% ROI
Variant B (2.0%): 22 trades → 18.40% ROI, +1.64% edge vs. HODL
Variant C (0.1%): 6 trades → 19.49% ROI ⚠️

Fewer trades, higher return.

In a strongly trending single-asset environment, tighter rebalancing can trim a winner (XRP, +26.97%) before it's done running.

The 2% threshold stayed disciplined and still beat HODL - just not by as much as the lower-frequency variant.

Takeaway: threshold selection should match the market regime, not a fixed default. Backtest before you deploy.

#Bitcoin #CryptoGates #Rebalance