1. What Is a Stock Portfolio Bot?
A stock portfolio bot is an automated trading strategy designed to help users dynamically adjust their stock portfolio holdings, suitable for both medium and long-term investment horizons. By setting target allocation ratios, rebalancing intervals, and thresholds, the bot automatically sells assets that have risen above their target proportion during market fluctuations and buys assets with lower proportions. This restores the asset allocation to your preset ratios, enabling dynamic rebalancing and potential investment gains.
2. Stock Portfolio Bot Overview
Advantages of a Stock Portfolio:
If you are optimistic about multiple stocks or sectors and wish to hold them long-term, you can choose the stock portfolio bot.
- Diversification of Risk: The stock portfolio bot supports multi-asset holdings. By allocating assets across different stocks, it effectively reduces the risk of profit drawdown caused by a single stock’s price correction.
- Sell High, Buy Low: The market often experiences rotation in gains among different stocks or sectors. When a sector or stock rises, the bot can sell at the peak to lock in profits, and simultaneously buy other stocks at lower prices—capturing opportunities to buy low. Repeating this cycle can generate rotation returns.
How Does a Stock Portfolio Achieve Arbitrage?
By taking profits from assets that have risen quickly and using them to buy assets that have lagged, the portfolio rebalances its holdings. This is akin to using profits from an outperforming asset to increase the position of another, compounding returns and ultimately generating additional gains.
3. Stock Portfolio Parameters Explained
Parameter Glossary
- Add Stocks: Add the stocks you wish to include in your portfolio. You must select at least 2 stocks, with a maximum of 10 stocks per portfolio.
- Equal Allocation: Clicking "Equal Allocation" will evenly split your portfolio among the selected stocks. Tip: You can manually adjust each stock’s allocation according to your preferences, but the total allocation must equal 100%.
- Total Investment: The total investment amount must be greater than or equal to the minimum investment. The minimum depends on the number of stocks selected in your portfolio.
- Rebalancing Interval: Over the set time interval, the allocation of your portfolio will shift as asset prices change. When the rebalancing time arrives, the bot will automatically adjust your holdings back to your initial target ratios.
- Rebalancing Threshold: If the allocation of any single stock in your portfolio changes by more than the set threshold, the bot will adjust the portfolio back to the initial ratios.
- Portfolio Rebalancing Interval & Threshold Example:
Suppose your current portfolio contains two stocks: NVDA and TSLA. You set the initial allocation at 50% each. If your portfolio is worth 1,000 USDT, both NVDA and TSLA are valued at 500 USDT each.- If you choose to rebalance by time interval and set it to 4 hours, the bot will check every 4 hours whether the current allocation matches your initial setup. If NVDA rises to 52% (520 USDT) and TSLA falls to 48% (480 USDT), NVDA has 40 USDT more than TSLA. The bot will sell NVDA and buy TSLA, returning the allocation to the original 1:1 ratio by transferring 20 USDT from NVDA to TSLA. Both will then be worth 500 USDT each, with no loss incurred.
- If you choose to rebalance by threshold and set it at 3%, the bot will automatically adjust the portfolio whenever any stock’s allocation shifts from 50% to 53% or drops to 47%. In this case, the bot executes a sell-high, buy-low strategy automatically.
4. How to Create a Stock Portfolio Bot
Step 1: Go to the Trading Bot Homepage
- Open the Gate App and tap [Trade] in the bottom navigation bar.
- Select the [Bots] section.
Step 2: Enter the Stock Portfolio Creation Page
- Tap "Create" and select the Stock Portfolio Bot.
Step 3: Set Parameters and Create
- Add the stocks you want to invest in and set your target allocation ratios.
- Choose your rebalancing method—you can trigger rebalancing by time or by allocation threshold.
- Tap "Create Bot."
5. Important Notes
- Due to differences in trading hours across markets, you can only create stock portfolios with stocks from the same market. Cross-market portfolios are not supported. For example, if you select US stocks, all stocks in your bot must be US stocks.
- If any stock in your active bot is not trading (market closed), you cannot add funds, adjust allocations, or terminate the bot. You must wait until all stocks in your bot are within trading hours to perform these actions.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
