Rebalance window

The rebalancing date. This date affects:

The rebalancing date doesn't affect the trade dates of suggested trade orders. Trade orders are created with today's date by default. To adjust the trade dates, see the Align buy and sell dates in Trade order parameters section.

Restrict rebalancing to only reach the target level for portfolio accounts, without any other buys or sells. This feature has different effects depending on the rebalance method (buying with current cash or using cash from sells) – see Choose rebalance method.

With the conservative rebalancing method (buy with current cash only), securities are bought and sold only to achieve the target level of the account. If the account has excess cash, the selected securities (starting from the ones that have the largest difference with the target) are bought as long as there is available cash but nothing is sold. If the account has a lack of cash, the selected securities (starting from the ones that have the largest difference with the target) are sold until the account reaches the target level - nothing is bought and securities are sold only to rebalance the account to the defined level.

With the exchange method (buy with cash from sells only), if the account balance is below the target, it is first rebalanced with sells. After this, the excess cash from sells is used to buy the securities to be rebalanced, but securities are sold only to cover all the necessary buys. If there are executable sell trade orders, the cash coming in from these is taken into account when selling the securities.

With full rebalance, if the account balance is below the target, it is first rebalanced with sells. After this, the excess cash from sells is used to buy the securities to be rebalanced, but securities are sold only to cover all the necessary buys.

Cash sources the system can use to generate buy orders:

To understand how this field affects different rebalancing strategies, see Choose rebalance method.

Position sources the system can use to generate sell orders:

Example: Portfolio holds Security A for 100€, while the model doesn't have this position at all. You have an existing buy order for 50€, and an existing sell order for 30€. With "Sell from: Positions minus sell orders", rebalancing will suggest a sell order for 70€ (portfolio position 100€ – existing sell order 30€). With "Sell from: Positions minus sell orders plus buy orders", rebalancing will suggest a sell order for 100€, taking into account the existing buy order for 30€. After all orders are executed, the portfolio will still hold 20€ of Security A: 100 (initial position) + 50 (buy) – 30 (sell) – 100 (new rebalance sell) = 20€ remaining.

Note that if existing buy orders are trade-amount-based, and the target requires creating unit-based sells, rebalancing with "Positions minus sell orders plus buy orders" can result in short positions. This is because the actual number of units from the buy depends on future market prices. Example: The portfolio holds 100 units of Security A at 10€ (value 1,000€). There is an existing sell order for 100 units (from a model change) and an existing trade-amount-based buy order of 100€. With Positions minus sell orders plus buy orders, rebalancing includes the expected buy because both buy and sell orders exist, and suggests selling 110 units in total. However, when the buy order settles at a new price of 11€, it delivers only 9 units instead of the estimated 10. This leaves the portfolio with 109 units against 110 sold, resulting in a short position of 1 unit.

To understand how this field affects different rebalancing strategies, see Choose rebalance method.

The minimum size for the trade orders that rebalancing should create. The size restrictions don't apply if you sell an entire position away from the portfolio. Set the minimum difference between the portfolio position and the model as:

Accounts to use for buys if you select to buy with extra cash in the portfolio. This option allows you to keep your portfolio fully invested and exclude certain accounts (for example, accrued fee accounts) from rebalancing.

Whichever option you choose, rebalancing uses only portfolio's own accounts or sub-portfolios' accounts – accounts that are shared to the rebalanced portfolio from other portfolios aren't used in rebalancing.

Use credit account for buys. Choose if you want to use the positive account balance and available credit for buys, and if you want to cover the negative balance. The option is shown if you selected "All accounts", "Cash and credit accounts" or "Default account only" in Use cash from accounts.

An option to calculate fees, or to estimate the effect of an upcoming fee when generating buy and sell trade orders. If a fee is calculated, the effect of the fee is taken into account when determining how many units you can buy with you available cash and how much money you get from sells. This allows you to estimate the effects of upcoming transaction fees more accurately. Fees are also saved in the Fees field for each trade order.

Option to set the minimum trade amount of the security as the minimum trade order amount. A trade order is only created if the amount is at least equal to the security minimum trade amount. If you also use trade amount for Filter out small trade orders based on, rebalancing first applies the filter and then checks the security minimum trade amount.

The system starts rebalancing from the largest potential trade order and works towards the smallest one. If both settings are enabled, the system does the two checks and if a trade order fails them, the following logic is used:

Example 1: The rebalancing amount is 550. Minimum trade amount is 100. Security minimum trade amount is 600. The system first checks if 550 > 100 (true), and then checks if 550 > 600 (false). No trade order is created.

Example 2: The rebalancing amount is 550. Minimum trade amount is 100. Security minimum trade amount is 300. The system first checks if 550 > 100 (true), and then checks if 550 > 300 (true). The system creates a trade order.