Use Rebalance if the Actual Allocation amounts have become out of sync with your targets, or If you want to change the Target Allocations. When the rebalanced allocations are Saved, you “Create Rebalance Orders” to sell some instruments and buy others to achieve the updated Target Allocations. You can rebalance your models at any time. Once you rebalance, the Rebalance orders attempt to hit the new Target Allocations.
For example, if you have five (5) assets in your Portfolio Model with Target Allocations set to 20% for each, but due to movement in the price of instruments the Actual Allocations have moved far away from the original Targets, you can reset the Target Allocations to 20% for each asset and submit Rebalance orders.
Additionally, you may want to modify the Target Allocation percents for future investments. Imagine you want to increase the percentages for two of your assets. You could reset the Target Allocations to 40%, 30%, 10%, 10%, 10% and SAVE your new targets. The next time you invest in the model, funds will be allocated based on the new Target Allocations.