Auto-rebalance on flip

Also seen as: Auto-rebalance (the control label), "Triggers rebalance" (the risk-list marker), off-schedule rebalance.

What does Auto-rebalance change about a flip?

It changes whether the flip is executed immediately or at the next scheduled rebalance. With Auto-rebalance on, the flip forces a rebalance the moment it happens, so the incoming allocation profile is applied off-schedule. With it off, the flip is recorded but the holdings do not change until the strategy's next scheduled rebalance, set by Rebalance every — until then the strategy keeps holding the outgoing profile's mix. The destination is identical in both cases: the strategy still ends up in the profile the condition asked for.

Two settings therefore pace a flip in sequence. The confirmation delay decides whether the flip counts yet; Auto-rebalance then decides whether counting means an off-schedule rebalance or a wait for the scheduled one.

Defaults in Fincanva

• Auto-rebalance is set per condition, not per strategy: each of a strategy's up-to-two risk conditions carries its own toggle.
• Every built-in risk template arrives with Auto-rebalance off, so a flip rides the normal schedule unless you turn it on.
• A rebalance forced this way is extra to the schedule — the Next rebalance date shown for a strategy is the scheduled one, and a risk-triggered rebalance can happen in between it and the previous one.
• If the Risk-Off profile is configured identically to Risk-On, a forced rebalance has nothing to switch to and changes nothing.
• Rebalancing off-schedule means trading off-schedule, so it carries the same costs the simulation assumptions apply to any other rebalance.

Worked example

A strategy rebalances every 6 months. Its last rebalance was 1 March, so the next scheduled one is 1 September. On 10 May — four months into the cycle — its risk condition flips, with the Confirmation delay (weeks) at 0.

With Auto-rebalance on, the strategy rebalances on 10 May: the incoming allocation profile is applied that day and the holdings change mid-cycle. With Auto-rebalance off, the flip is recorded on 10 May but nothing trades; the strategy carries the outgoing profile's holdings for nearly four more months and only switches on 1 September. Same condition, same thresholds, same destination — a four-month difference in when your holdings reflect it. Shorten the cadence to Rebalance every 1 month and the gap narrows to weeks, which is why the toggle matters most on long cadences.

Learn more: How Risk-Off affects when your strategy rebalances