Interpretation of Smart Rebalance Strategy In Strategy Bot

What is smart rebalancing?

As a classic strategy, the invention of smart rebalancing aims to solve the problem of users holding multiple assets but lacking the energy to study the buying and selling timing of each coin. The core of this strategy is to increase the total amount of held assets through high selling and low buying (that is, buying assets whose proportion is decreasing and selling assets whose proportion is increasing), while keeping the asset allocation largely unchanged. By 2025, this strategy has been enhanced through advanced threshold settings, support for multi-asset portfolios with up to 10 assets, and comprehensive performance analysis. Data from Gate.io confirms the effectiveness of threshold-based rebalancing, showing an average return rate of 22.3%, compared to 18.5% for time-based methods, making it an important tool for cryptocurrency investors seeking automated portfolio management.

Latest update in 2025

The smart rebalancing strategy has seen significant enhancements in 2025, with the main improvements as follows:

• Advanced threshold settings: customizable sensitivity levels for more precise market response.
• Multi-Asset Portfolio Expansion: Now supports up to 10 assets simultaneously in a single strategy.
• Performance Analysis: Enhanced dashboard providing historical rebalancing analysis

The effectiveness of this strategy has been validated under various market conditions in 2025, particularly during periods of high volatility. Gate’s data shows that implementing a strategy with a 5% threshold setting yields an average return that is 12% higher than a static portfolio.

The platform continues to refine this classic strategy, maintaining its position as an essential tool for cryptocurrency investors seeking automated portfolio management without the need for constant market monitoring.

Interpretation of the Smart Adjustment Strategy in Quantitative Copy Trading

1. What is intelligent asset reallocation?

Smart rebalancing is a classic strategy invented to address the dilemma of holding multiple assets while finding it difficult to research the buying and selling timing of each cryptocurrency. The core of the strategy is to increase the total amount of assets held through sell high and buy low operations while maintaining the basic asset allocation relatively unchanged.

In simple terms, intelligent rebalancing is the adjustment of the position in the portfolio to return the holding proportions to the initial settings. When the holding proportions fluctuate beyond the rebalancing threshold and reach the rebalancing cycle, sell the assets with a higher holding proportion and buy the assets with a lower holding proportion, so that the portfolio asset holding proportions return to the initial settings.

2. Advantages of Intelligent Rebalancing

For investors who hold multiple assets but lack the energy to monitor the performance of each asset at all times, smart rebalancing can help liberate human resources.

In addition, smart rebalancing enhances the overall yield of the portfolio by leveraging rapid price fluctuations. When an asset in the portfolio reaches a profit threshold, the smart rebalancing strategy reallocates this portion of the profit to other assets, adjusting the rising assets back to their initial value. This way, during this period, the net value of the portfolio increases, and the total amount of assets also grows.

Especially in a market with significant fluctuations, intelligent rebalancing can keenly capture the position changes of different assets, allowing the held assets to oscillate within a certain range and effectively avoiding large fluctuations in returns due to market volatility. When a certain digital asset’s market is strong and rising, rebalancing can distribute the profits to other digital assets in the holding portfolio, allowing the overall portfolio to rise relatively steadily; during a downturn, the decline in the overall portfolio can be less than the decline in a certain digital asset, ultimately achieving relatively stable returns.

3. Specific Cases of Intelligent Rebalancing

When using smart rebalancing, you first need to set the initial asset allocation ratio, and then you need to set the rebalancing mode. The rebalancing mode can be based on time periods or on the volatility threshold you set.

To better understand the principles and usage process of intelligent asset rebalancing strategies, we provide an example for you:

For example, your current portfolio contains 2 types of assets: BTC and ETH. You initially set the asset ratio to 50% and 50%. If the total value of your portfolio is 100USDT at this moment, then the value of both BTC and ETH is 500USDT.

If your rebalancing mode is based on a time period, the rebalancing time is set to 24 hours. When the rebalancing period reaches 24 hours, the intelligent holding Bots will determine whether the value ratio of each of your assets is consistent with your initial ratio. If your BTC asset rises within 24 hours, the position value ratio changes to 52%, ETH price If the market drops and the position ratio becomes 48%, the smart rebalancing strategy will execute high sell and low buy, selling BTC and buying ETH, so that the investment portfolio’s ratio returns to the initial setting.

If your rebalancing mode is set to threshold mode, for example, if you set the rebalancing threshold to 3%, it means that when the allocation of the combined assets changes by 3%, the positions will be automatically adjusted. If your BTC assets account for 50% and rise to 53% at any given time, the smart rebalancing strategy will also automatically execute high selling and low buying.

Rebalance according to the time period

Smart Rebalancing Process: *Initial ratio set > Position changes within the set time period > Position adjustment completed after reaching the time period set for position changes > Position adjustment completed after reaching the time period.

Rebalance according to threshold

Smart Rebalancing Process: Initial ratio set > Position reaches the set threshold (assumed to be 3%) > Position automatically adjusts to the initial set ratio Position reaches the set threshold (assumed to be 3%) > Position automatically adjusts to the initial set ratio

4. What investment scenarios are suitable for smart portfolio adjustment?

Smart rebalancing is suitable for volatile markets with significant ups and downs. Users can use smart rebalancing to keep the proportion of their digital assets within a certain range, effectively avoiding large fluctuations in returns due to market conditions.

If you want to choose a recently high-performing smart rebalancing strategy, please enter our quantitative copy trading product: https://www.Gate/en/strategybot After selecting the strategy type “Smart Rebalancing”, filter the cryptocurrencies you want to invest in and start copy trading~

Regarding how to select recently performing strategies, you can refer to our blog post: Quantitative Copy Trading: How to Quickly Identify Profitable Quantitative Strategies?

Overall, smart rebalancing, as a classic strategy used in the traditional investment industry for decades, still has its irreplaceable advantages in today’s cryptocurrency investment market. Having learned so much about smart rebalancing, hurry up and create strategies or copy excellent smart rebalancing strategies for practical operation!