kraken-rebalancing

kraken-rebalancing

Use this skill for:

• checking current portfolio allocation vs target weights
• calculating rebalance trades
• executing rebalance orders with minimum trade thresholds
• scheduling periodic rebalance checks

Define Target Allocation

Example target: 50% BTC, 30% ETH, 20% SOL (by USD value).

The agent maintains these weights and compares against current holdings.

Read Current Portfolio

1. Get balances:

   kraken balance -o json 2>/dev/null
   

2. Get current prices for all held assets:

   kraken ticker BTCUSD ETHUSD SOLUSD -o json 2>/dev/null
   

3. Calculate USD value of each holding and total portfolio value.
4. Compute current weights: asset_value / total_value for each.

Calculate Rebalance Trades

For each asset:

• Target value = total_portfolio * target_weight
• Current value = holdings * current_price
• Delta = target_value - current_value
• If delta > threshold: buy (delta / price) units
• If delta < -threshold: sell (|delta| / price) units

Set a minimum trade threshold (e.g., $50) to avoid placing tiny orders that waste fees.

Paper Rebalance Test

kraken paper init --balance 10000 -o json 2>/dev/null

# Initial buys to establish positions
kraken paper buy BTCUSD 0.05 -o json 2>/dev/null
kraken paper buy ETHUSD 1.0 -o json 2>/dev/null
kraken paper buy SOLUSD 10 -o json 2>/dev/null

kraken paper status -o json 2>/dev/null

# After price drift, rebalance
# Sell overweight asset, buy underweight asset
kraken paper sell BTCUSD 0.005 -o json 2>/dev/null
kraken paper buy SOLUSD 2 -o json 2>/dev/null

kraken paper status -o json 2>/dev/null

Live Rebalance Execution

1. Calculate all required trades.
2. Present the rebalance plan to the user:
   • Current allocation vs target
   • Proposed trades with estimated fees
3. Validate each order:

   kraken order sell BTCUSD 0.005 --type market --validate -o json 2>/dev/null
   kraken order buy SOLUSD 2 --type market --validate -o json 2>/dev/null
   

4. Execute sells first (to free capital), then buys (requires human approval):

   kraken order sell BTCUSD 0.005 --type market -o json 2>/dev/null
   kraken order buy SOLUSD 2 --type market -o json 2>/dev/null
   

5. Verify final state:

   kraken balance -o json 2>/dev/null
   

Drift Detection

Periodically compare current weights to targets. Trigger rebalance when any asset drifts beyond a threshold (e.g., 5% absolute drift):

# Agent checks balance and prices on a schedule
# If |current_weight - target_weight| > 0.05 for any asset → rebalance

Rebalance with Limit Orders

For lower fees, use limit orders instead of market:

PRICE=$(kraken ticker SOLUSD -o json 2>/dev/null | jq -r '.[].a[0]')
kraken order buy SOLUSD 2 --type limit --price $PRICE -o json 2>/dev/null

Check fills before declaring rebalance complete:

kraken open-orders -o json 2>/dev/null

Hard Rules

• Never execute rebalance trades without explicit human approval.
• Always present the full rebalance plan (sells and buys) before execution.
• Execute sells before buys to ensure sufficient quote currency.
• Respect minimum order sizes for each pair (check pair info with kraken pairs).
• Apply a minimum trade threshold to skip negligible adjustments.