Blacklisting is a simple way of selecting the amount of an asset that should be ignored when performing trades. Whether it’s only a portion of the entire asset balance or the total asset balance, the amount that is blacklisted will be ignored when rebalancing or allocating a portfolio. In the Shrimpy application, this amount will still be visible on the dashboard, so you can still see the full overview of your portfolio.
There are times where you may want the entire asset to be blacklisted. No matter how much of the asset you own, you don’t want any of it to be considered for trades.
In this case, Shrimpy users can simply specify a large amount for a specific asset. Entering an amount that is more than you own will essentially blacklist the entire asset.
Example: You don’t want to ever sell LTC.Solution: Blacklist 100,000,000 LTC.
You now have a complete blacklist of LTC since it’s impossible to have 100,000,000 LTC. The number you chose doesn’t need to be as large as 100,000,000 LTC, just larger than the amount you own.
One caveat with completely blacklisting an asset is that you will continue to buy that asset if you also specify an allocation amount for that asset in your portfolio. The reason is because Shrimpy pretends you have 0% of that asset, due to it being blacklisted. If you allocate 50%, Shrimpy will buy an amount equal to 50% of the remaining portfolio to attempt to reach the target allocation. Then, during the next rebalance, it will see that you have 0% of that asset again, repeating the buy. Continuing this process every rebalance.
Example: You have 100 BTC and 100 LTC in your portfolio. You completely blacklist LTC and specify 50% BTC and 50% LTC as your allocations.Result: Every rebalance, half of your BTC will be sold to LTC until you don’t have any BTC left and only have LTC.
If you don’t want this accumulation to happen, don’t allocate a percent for the assets which are completely blacklisted.
There are also times when you may not want an entire asset to be blacklisted, but only part. Partial blacklisting is also possible.
By specifying only some of an asset to be blacklisted, this will remove only that amount from being rebalanced.
Example: You have 1 BTC. However, you want .5 BTC to be ignored.Solution: Type in a blacklist for .5 BTC.
Partial blacklisting will ignore the amount specified, the rest will be traded normally. Both amounts will show up on the Shrimpy dashboard.
Similar to the complete blacklist, the allocation amount matters when dealing with blacklisting. In the case of partial blacklisting, Shrimpy will trade in order to reach the allocation percentage with the rest of the asset.
Example: You have a total portfolio value of 1 BTC, an allocation of 50% BTC / 50% LTC, and a blacklist for .5 BTC.Result: Shrimpy will trade so you have .25 BTC worth of LTC and .75 BTC.
In this example, you can see how since there is a .5 BTC blacklist, the remaining assets were divided evenly between LTC and BTC. This is because Shrimpy trades as if you only have .5 BTC worth of assets.
Exclude Offline from Rebalancing
The rules for partial blacklisting also apply for the balances that are input into the Cold Storage section. Either part of the amount or the entire amount can be blacklisted. Shrimpy will ignore the assets that were entered into the Cold Storage first, and then if there is an additional amount in the blacklist, it will ignore the remaining amount from the balance currently held on the exchange.
Example: You blacklist .5 BTC. You currently have .25 BTC entered into Cold Storage and .5 BTC on the exchange. (So, a total of .75 BTC) Result: Shrimpy will first blacklist the .25 BTC which is not on the exchange. Since there is still .25 BTC left over in the blacklist, Shrimpy will blacklist .25 BTC from the exchange. The result is .25 BTC that is liquid on the exchange.
This allows the blacklisting of both assets held on the exchange as well as those entered into the Cold Storage field in Shrimpy.