What Is Rebalance?

In a trading strategy, rebalance refers to the process of re-weighting the portfolio by selling some assets and buying new ones.

Rebalances are needed in order for the strategy to follow its alpha model.

Rebalances can be done at fixed intervals, usually hourly, daily or weekly.

In the process, the strategy opens new and closes existing positions.

See also

• Portfolio construction

• Weight allocation

• Position

• Alpha model

• Trading strategy