The Index trading mode splits and maintains your portfolio distributed between the traded currencies. It enables to maintain a crypto index based on your choice of coins.<br><br>To know more, checkout the <a target="_blank" rel="noopener" href="https://www.octobot.cloud/en/guides/octobot-trading-modes/index-trading-mode?utm_source=octobot&utm_medium=dk&utm_campaign=regular_open_source_content&utm_content=IndexTradingModeDocs"> full Index trading mode guide</a>.<br><br>### Content of the Index The Index is defined by the selected traded pairs against your reference market in the profile configuration section. Example: - Your reference market is USDT - Your traded pairs are BTC/USDT, ETH/USDT, SOL/USDT, ADA/USDT Then your index will be made of 25% BTC, 25% ETH, 25% SOL and 25% ADA. Each coin's holding % will be computed against USDT and checked on a regular basis. You can also specify a specific % for each coin using a Custom distribution using the [Premium OctoBot extension](extensions).<br><br>When starting the Index trading mode with a new configuration, or if your current portfolio doesn't reflect the target of the index, your portfolio will automatically be adapted to reproduce the index at the best accuracy possible.<br><br>### Index rebalance An Index rebalance is the event when OctoBot is sending orders to the exchange to adapt the content of your portfolio in order to reproduce the configuration of your Index. Once your Index trading mode has started, OctoBot will maintain the index content by automatically checking the content of your portfolio of a regular basis and will trigger a rebalance if necessary.<br><br>Your portfolio content is checked every configured `Trigger period` days. Decimal values can be used to check multiple times a day. If during an index check, your OctoBot detects that your portfolio content doesn't comply with your index configuration, it will trigger a rebalance.<br><br>If `Trigger period` is set to `0`, then each new price of any indexed coin will trigger an index checkup and a rebalance if conditions are met.<br><br>### Rebalance cap When checking for rebalance, the Index trading mode also uses your `Rebalance cap` configuration before considering your portfolio out of synch with your index configuration. The Rebalance cap is an allowed percent of allocation that will avoid triggering a rebalance as long as any coin holding is still within the ideal holding % plus or minus the rebalance cap. Example: An index on 3 coins with a 33.33% target on each coin and a Rebalance cap of 5% will trigger a rebalance if the holding if any of those 3 coins takes more than 38.33% or less than 28.33% of the portfolio<br><br>Warning on high Rebalance caps: When your index Rebalance cap is higher or equal to the target holding % of a coin, no rebalance will be triggered if your holdings of this coin become very low, rebalances will only be triggered when holdings are getting too high. This is a special case that can happen when using a large Rebalance cap. Example: Let's take an index on 10 coins using a 10% target for each coin. Using a Rebalance cap of 11% will only trigger a rebalance if any of those 10 coins take more than 21% of the portfolio (10% + 11%). The other side: 10% - 11% = -1% is negative and therefore can't happen, which means rebalances won't be triggered from lower holdings in this configuration. Using a 9% rebalance cap however would trigger a rebalance at 1% holdings (10% - 9%). <br><br>Please note that if the % held of a coin is 0%, then a rebalance will always trigger, ignoring Rebalance cap.<br><br>### Minimum funds To use the Index Trading Mode, the minimum required funds are twice the minimum exchange order amount for every traded coin. This means that when trading 3 coins on Binance, at least 3 times $5 x2, which is $30 is required. Please note that this is the bare minimum, it's better to have at least twice this amount. If the minimum is reached, the Index Trading Mode will stop updating its portfolio according to the index until the value of the portfolio raises back above the required minimum.<br><br>### OctoBot cloud indexes The [Premium OctoBot extension](extensions) enables your open source OctoBot to use and customize OctoBot cloud's <a target="_blank" rel="noopener" href="https://app.octobot.cloud/explore?utm_source=octobot&utm_medium=dk&utm_campaign=regular_open_source_content&utm_content=IndexTradingModeDocs">automatically configured indexes</a>.