Portfolio Rebalancing & Optimization
Rebalancer
The Rebalancer tool aligns your portfolio to target allocations.
How to Use
- Go to Rebalance
- Select your portfolio
- Set target allocations by sector or by holding
- Review suggested buy/sell trades
- Execute or export the trade list
Strategies
- Threshold-Based — Rebalance when drift exceeds a set % (e.g., 5%)
- Calendar-Based — Rebalance quarterly or annually
- Hybrid — Quarterly rebalance + drift threshold trigger
Portfolio Optimizer
The Optimizer uses Modern Portfolio Theory (MPT) to find the efficient frontier:
- Max Sharpe — Maximize risk-adjusted return
- Min Variance — Minimize portfolio volatility
- Max Return — Maximize expected return for a given risk level
- Risk Parity — Equal risk contribution from each holding
Alpha Optimizer
The Alpha Optimizer goes beyond MPT with:
- Live FMP beta for every holding
- Factor-based optimization
- Constraint-aware allocation (min/max position sizes)
- Transaction cost modeling
Tax-Aware Rebalancing
The tools flag positions where selling triggers short-term capital gains. Consider:
- Directing new cash to underweight positions
- Waiting for long-term holding periods
- Using Tax-Loss Harvesting to offset gains