Rebalancing is the process of removing or reducing imbalances from accounts invested in the model. Rebalancing always involves all the accounts that have invested in the model. The tables show important data when deciding whether to rebalance. For each instrument there is one row and it shows:
- the actual percentage for the invested accounts, both as a range and as a weighted average single value,
- the instrument imbalance value - see next question for how that is defined.
There are two main rebalancing variants:
- Rebalance to Existing Model Targets: This is the simpler variant where the targets remain unchanged. You review the imbalances and decide if you wish to proceed. You can then draft orders to buy and sell the appropriate quantities in each account.
- Rebalance to New Model Targets: In this variant new targets can be set. You can add new positions and set targets for them. You must set an existing target to 0% if you want to divest from that position entirely. Once you have completed the target setting, you can then draft orders to buy and sell the appropriate quantities in each account. Note: if you wish to set new targets without creating any draft orders, then you can use the Edit Model functionality.