Wallet Rebalancing: What It Is and How It Works
What Is Wallet Balancing?
When you activate a certain strategy upon your initial setup, the bots will use the assets in your wallet to buy the coins included in the specific strategy. This process in which the bots buy the mix of coins included in the strategy is called balancing.
During this period the dashboard will show management status : ACTIVE: balancing.
This process usually takes between 15 minutes up to a few hours - depending on the the number of coins in the selected strategy and the number of strategies activated.
To see the current distribution of coins within a certain strategy you can have a look here: https://members.diamondpigs.com/fund/all
What Is Wallet Rebalancing?
Rebalancing means adjusting your crypto portfolio, so it matches the coins included in your chosen strategy. When you change a strategy, Diamond Pigs will automatically start rebalancing your wallet to reflect the coins included in the portfolio of the selected strategies.
Over time, as some coins gain or lose value, your portfolio may drift away from your target balance. Rebalancing brings it back to this target by selling coins that have grown too much and buying more of those that have decreased, helping keep your portfolio on track with your goals.
To minimize trading fees, we only rebalance when the changes pass a certain threshold.
What Happens When I Switch Strategies?
When you switch to a different strategy, your portfolio rebalances to match the new strategy. This involves buying and selling coins to align with the new strategy. Frequent switching can sometimes result in buying a coin one day and selling it the next if the strategies differ. It’s best to pick a strategy you trust and stick with it for optimal performance.
How Does Wallet Rebalancing Work with Multiple Strategies?
For wallets with more than 2000$ we allow the option to choose more than one strategy.
You will assign a certain allocation percentage to each strategy, so each strategy has its own share of your wallet. The rebalancing process aims to keep these shares as close as possible to your targets, even as the value of different strategies changes. This may require more trades to keep each strategy’s portion accurate.
What does "Unbalancable wallet" mean?
An "Unbalancable wallet" message appears when the amount available for trading is too low for Diamond Pigs’ bots to make the necessary trades. This has to do with exchange minimum trade amounts. Most exchanges have a minimum amount for trades (often €5-20), meaning trades won’t happen below that value.
More detailed explanation you can read in this article: Why aren't the bots initiating new trades?
Below are the reasons why this happens and what you can do to solve it:
- Your total wallet balance is very low - with less than €400 in your wallet, the bots may not be able to trade across all strategies due to the exchange minimum trading amounts limits. Allow enough assets in your wallet to ensure smooth trading.
- Most of your funds are BLOCKED or EXCLUDED - if you have excluded or blocked most of your funds they are not available for trading and the active amount left for trading might be too low. Make sure you have sufficient funds for trading left after you have excluded/blocked coins.
- Most of your funds are allocated in staking or another wallet, leaving only a small amount for trading. Diamond pigs only trades within your spot wallet. Any assets in other than the spot wallet are unavailable to our bots. Make sure you have sufficient funds for trading in your spot wallet.
If you need any further assistance please contact us at support@diamondpigs.com Related Articles
How do I select the right strategy?
As an initial step, we suggest selecting just one strategy to minimize additional small trading fees that might accrue from continuously rebalancing between various strategies. Which crypto strategy should I choose? Choosing the right strategy on the ...Why shouldn't I switch strategies and/or turn my Management button Off too often?
Users who are changing their strategies often will achieve worse results in the long run, than users who select one strategy. Here are 2 main reasons why: Each time a strategy is changed, additional trading fees will incur to rebalance the wallet ...How to use Diamond Pigs HOLD and FIAT strategies?
What's the purpose of HOLD/FIAT strategies in Diamond Pigs? We want to make it easy for you to control your entire portfolio right from Diamond Pigs, so you do not have to keep switching between various platforms. Our HOLD and FIAT strategies make it ...How do we select the coins to invest in?
Each strategy contains basket of fundamentally strong coins that were analysed and selected by our team. There are multiple coins that are on the strategy's radar. Here's how it works: First, our team analyses potential coins: we look at product ...How often is the wallet data updated on the members' dashboard?
The data on members dashboard is automatically updated every 10 minutes to ensure the Diamond Pigs dashboard accurately reflects your exchange wallet at 100%. it is refreshed when a user goes to his/her dashboard but only when the prior value was ...