Rebalancer
Portfolio rebalancing is a science. There is no exact formula for rebalancing a portfolio for optimal performance, hey some even say that rebalancing is completely unnecessary and the market will adjust itself over time. Whatever point of view you subscribe to, at with walthbot.io you have choices.
You may rebalance ad-hoc, on a set schedule based on tolerance bands or not at all… but that’s not terribly interesting.
What makes wealthbot.io unique is that all of our rebalancer logic is open-source for the world to scrutinize and study.
Because of our modularity you may swap out our rebalancer for the one you already use and trust or you can have an engineer rewrite some of the algorithms to your liking. Wealthbot.io and its open-source nature gives your complete freedom.
We do hope that what you get out-of-the-box will be plenty to satisfy your needs.
Our rebalancer feeds executes based on the data that you provide during setup. How much does a client make? Do they they need tax loss harvesting? [link] Do we perform household or account-level rebalancing? What holding does a client currently have? What is the target? How can I minimize the trades? etc.
The rebalancer goes through a series of steps trying to intelligently buy and sell most out of balance (OOB) holdings (or perhaps securities that have been transferred from an external account). The rebalancer will try to minimize the amount of trades by selling larges lots first. It will also respect the rules of a “wash sale” to ensure integrity and compliance.
Updated less than a minute ago