Rebalancing bot: it defends a mix, not a view

Rebalance starts from weights you write down: so much of one coin, so much of another, so much left as quote currency. When a weight drifts outside a band, the rule sells the overweight piece and buys the underweight piece. The band exists so the account does not trade on every tick. A tighter band means more fees. A wider band means a mix you may not recognize.

Cash is a position

A target that is fully invested will buy every idle coin of quote currency back into the market. If you want a sleeve that is allowed to sit still, you give cash a weight of its own. That choice is part of the strategy, not a leftover. Without it, rebalance is a machine for staying exposed.

The trades realize gains and losses. Selling a coin that ran up locks in the exchange's price at that moment and may create a tax event in your jurisdiction. Captay does not know your tax home and will not describe the trade as efficient. The journal, later, would list the fill. It would not file a return.

Selling a winner can be the point and the mistake

The mechanism sells what grew and buys what shrank. Over a long trend, that repeatedly trims the coin that is working and adds to the one that is not. Sometimes that is the diversification you asked for. Sometimes it is how a mix lags a single holding you would have preferred to keep. The rule cannot tell those stories apart. You can, by not arming it, or by setting a band so wide that it rarely fires.

What the rule will not do

• It will not borrow, and it will not short. A weight cannot go below zero by design.
• It will not pick a new universe of coins. The list is the list you typed.
• It will not treat another strategy's inventory as someone else's problem if both can trade the same symbol.
• It will not present itself as a portfolio manager. There is no mandate and no duty beyond following the weights until a limit says stop.

Drawdown and the daily loss limit apply to the slice, not to a benchmark. Beating or lagging a published index is not a condition the halt understands. The halt understands the loss you named. Nothing on this page computes a weight for you, and no rebalance has been submitted anywhere.