fbHow to create and configure my own index?

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    How to create and configure my own index?

    Note: If you have not purchased a J’JO subscription, creating your own indices is not available.

    Advanced J'JO functionality, designed for more experienced investors, allows for the easy creation of custom investment strategies: including any number of cryptocurrencies in an index, adjusting asset weights, and rebalancing conditions. Moreover, backtesting is available to compare the performance of created indexes/portfolios among themselves and against major cryptocurrencies based on historical data.

    The minimum amount to create your own index can be less than $50, depending on the number of coins chosen.

    The index consists of cryptocurrencies with the highest market capitalization. If the cryptocurrency rankings change, it will automatically be reflected in the index composition during rebalancing. Thus, the index always contains only the strongest cryptocurrencies.

    If the market capitalization of a new cryptocurrency exceeds the capitalization of any of the ones already on the list, it will be automatically added (if not on the blacklist) according to the rebalancing settings.

    1) Go to your personal account -> Portfolios -> Create portfolio. Enter the index name and choose the number of top coins in the index.

    • You can choose up to 50 top cryptocurrencies that you want the index to support (starting from the top-1 to the top-50). The full list of top coins can be viewed on the coinmarketcap.com website. The coin rankings constantly change due to the high volatility of the crypto market.

    2) After selecting the number of top coins in the index, click on the "Configure" button.

    Blacklist - J'JO can take into account your cryptocurrency preferences because of the Blacklist feature. If you do not want to see certain coins in your created index, simply add them to the blacklist. If you have selected the top 5 and the coin in fifth place is on the blacklist, the coin in sixth place will be included in the index instead.

    3) Now you need to configure the percentage allocation of cryptocurrencies in your index.

    Equal Weight - is a percentage distribution of assets where each cryptocurrency has the same weight in the index. This means that each coin is represented in the index with an equal percentage share, making it much easier to track its performance.

    Example:

    If you have 10 cryptocurrencies in your index, dividing 100% by 10 gives a 10% share for each coin.

    Please note that during the next rebalancing, one of these coins may be replaced by some other coin in case of changes in the cryptocurrency rankings.

    Market capitalization is calculated by multiplying the current market price of a cryptocurrency by the total number of coins of that cryptocurrency in circulation. The larger the market capitalization of a cryptocurrency, the greater its weight in the index. This allows your index to better reflect the current state of the overall market and brings it closer to the total return of all cryptocurrencies.

    You can find more detailed information about market capitalization and its square root in this article "Equal weight or Market capitalization: what it means".

    4) Select the type of index rebalancing.

    Rebalancing is a forced change in the structure of your index according to the previously selected settings.

    You can find more detailed information about rebalancing in this article "Rebalancing: what it means".

    5) After configuring the rebalancing, click the "Create" button.

    Congratulations! You have successfully created your own index!

    Now you can compare it with other indexes or invest in it right away with one of the cryptocurrencies of your choice  — BTC/USDT/ETH. The first rebalancing will take no more than 30 minutes.

    Still have questions?