Should I rebalance my cryptocurrency portfolio or just HODL? We backtested 100,000 cryptocurrency portfolios in order to find out. Generally rebalancing improves performance, but not always.
After backtesting 10,000 crypto portfolios, we found that there is NO best rebalancing period, even in the cryptocurrency market
After simulating 100,000+ portfolios, we found that rebalancing improves returns given high volatility, low correlation between assets, and small differences in rates of return.
There is a ton of debate as to whether portfolio rebalancing improves returns. This article reviews the academic research and offers a definitive answer.