Compare current allocation against target and see the trades needed to realign.
Rebalancing bands avoid constant trading on small moves while still controlling risk. A five point band on a 70% equity target means acting only outside the 65 to 75 range. Threshold rebalancing captures most of the risk control of calendar rebalancing at a fraction of the trading cost.
Portfolio Allocation
Trade = target weight × portfolio value − current holding value
Trade = target weight × portfolio value − current holding value Rebalancing bands avoid constant trading on small moves while still controlling risk. A five point band on a 70% equity target means acting only outside the 65 to 75 range.
Threshold rebalancing captures most of the risk control of calendar rebalancing at a fraction of the trading cost.
This calculator takes 4 inputs: Portfolio value, Current equity allocation, Target equity allocation, Rebalancing threshold. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.