By name: portfolio-rebalance description: Cross-domain portfolio rebalancing strategies. Use when evaluating portfolio allocation, moving funds between domains, or optimizing overall capital deployment.
Portfolio Rebalancing Strategy
When to Use
- Portfolio becomes unbalanced (one domain >40% of total)
- Domain underperforming significantly
- Major market condition change
- Quarterly review
Target Allocation
Default Balanced
- DLMM: 25%
- Perps: 25%
- Polymarket: 25%
- Spot: 25%
Conservative (Bear Market)
- DLMM: 40% (stable yield)
- Perps: 10% (reduced risk)
- Polymarket: 30% (uncorrelated)
- Spot: 20% (reduced exposure)
Aggressive (Bull Market)
- DLMM: 20%
- Perps: 30% (trend following)
- Polymarket: 20%
- Spot: 30% (momentum plays)
Rebalancing Rules
Trigger Conditions
- Any domain >40% of total portfolio
- Any domain <15% of total portfolio
- Domain drawdown >20% from peak
- Major market regime change
Execution
- Calculate current allocation percentages
- Identify overweight and underweight domains
- Close/reduce positions in overweight domain
- Open/increase positions in underweight domain
- Target moves of 5-10% at a time (not all at once)
Domain Performance Assessment
When to Reduce Allocation
- Win rate < 30% over last 20 trades
- Drawdown > 15% from starting balance
- Market conditions unfavorable for strategy
When to Increase Allocation
- Win rate > 60% over last 20 trades
- Strategy edge clearly working
- Market conditions favorable
Cross-Domain Correlation
Low Correlation Pairs (Good for Diversification)
- DLMM + Polymarket (different drivers)
- Perps + Polymarket (different drivers)
High Correlation Pairs (Careful of Concentration)
- DLMM + Spot (both affected by Solana market)
- Perps + Spot (both directional crypto bets)
Checklist for Rebalancing
- Current allocation calculated
- Performance per domain reviewed
- Market conditions assessed
- Target allocation determined
- Moves executed gradually (not all at once)
- New allocation documented