Rebalancing
Restoring a portfolio to its target weights by trimming what grew and adding to what shrank, on a schedule or a drift threshold. Rebalancing enforces sell-high/buy-low mechanically and keeps risk from concentrating in winners. Rotation strategies are rebalancing taken to the extreme: 100% weight, reassigned periodically.
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Related terms
Rotation StrategyA system that periodically ranks a menu of assets — sectors, countries…DiversificationSpreading capital across positions whose risks don't move together. Fo…
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.