This report analyzes the performance differences between the Rebalancing Bot and Grid Trading strategies using backtested data, along with an evaluation and application guidance for the related tools. This content is for reference only — backtest results do not represent future market performance or predict tool suitability.

Investors should recognize that there is no "perfect" strategy in the market — only strategy combinations that fit an individual's risk tolerance and investment goals. Investors are advised to maintain reasonable expectations and avoid unrealistic assumptions about any investment tool. The following focuses on the core questions users care about most:

The grid trading range was set at 0.015 – 0.3, with a starting ETH/BTC holding ratio of 0.9912:0.0088. Since ETH outperformed BTC, the grid strategy captured ETH's trend gains. The Rebalancing Bot underperformed because, starting from an equal ETH/BTC split, as ETH kept rising, the system continuously sold ETH and bought more BTC.

For two highly correlated coins, when one coin strongly outperforms, concentrating holdings in that coin maximizes returns. The grid strategy performed well because it used BTC to buy large amounts of ETH early on, then kept buying BTC as ETH rose — and since BTC rose in tandem, the fiat-denominated return exceeded that of a balanced allocation, capturing arbitrage-like gains.

Personal takeaway: With two-coin rotation at a default 1:1 ratio, you can capture roughly the average return of the two coins combined.

Returns are closely tied to the strength of the outperforming coin's rally, and to the size of that coin's initial position.

Based on the 5-minute rebalance backtest, holding BNB alone produced the highest return, ending at 120,296. The 5-minute rebalancing strategy ended at 84,217, ranking second. The 4-hour rebalancing strategy ended at 86,812.

These differences mainly stem from noticeable sector-rotation effects among the four coins — their price movements were not fully synchronized. Investors can refer to the corresponding candlestick charts for further analysis.

Note: UNI was replaced with FTT, a centralized-exchange token in the same sector as BNB.

The 5-minute rebalance backtest showed holding BNB alone performed best, ending at 170,313. Holding FTT alone came second, ending at 138,309. The Rebalancing Bot strategy ended at 118,724 — an excess return of 1,200 over the static-holding strategy.

The 4-hour rebalance backtest showed holding BNB alone had the highest return, ending at 170,313. Holding FTT alone ranked second, ending at 138,309. The Rebalancing Bot strategy ended at 120,789 — an excess return of about 2,900 over the static-holding strategy.

The core value of the Rebalancing Bot lies in asset selection and long-term position management, not short-term arbitrage. The longer the holding period, the more its effect shows.

Concentrating on a single strong-performing coin can indeed produce higher returns, while the Rebalancing Bot may outperform static holding in a multi-coin, same-sector, non-synchronized environment — the key factor is the correlation between the underlying assets. Longer rebalance-check intervals generally yield better performance.

If a portfolio spans multiple sectors with weak correlation and shows rotational tendencies — where each sector swings widely but ultimately reverts — it is advisable to enable rebalancing to capture additional returns. But if coin-selection confidence is low or asset risk is too high, rebalancing should not be enabled, to avoid the portfolio going to zero.

For two coins in the same sector, it is recommended to only adjust position ratios and use the Rebalancing Bot as a position-management tool. For multiple coins in the same sector whose price movements are not fully synchronized, it is recommended to enable rebalancing with a longer interval, such as 4 hours, or a deviation-triggered mechanism.

The Rebalancing Bot can be used to manage long-term holdings — for example, maintaining a preset 40% BTC / 30% ETH / 30% DOGE allocation, keeping that balance during rallies, or as a portfolio calculation tool that locks in assets and avoids emotional trading.

For investors with strong coin-selection ability, choosing sector leaders and using the rebalancing function will likely outperform static holding in most cases. The Rebalancing Bot is neither the best nor the worst strategy — its advantage is capturing the average return of a trend. Returns may be lower than concentrating on a single coin, but coin-selection risk is reduced.