Rebalance

UPDATED 2026-07-24

01 · Build

02 · Prove

03 · Hold

Foundations

Rebalancing is periodically resetting a strategy's holdings back to their target weights on a fixed cadence, so drift from market moves is corrected at each scheduled date rather than left to compound. Between rebalances the weights drift as some holdings rise and others fall; at each rebalance date the strategy trims what has grown past its target and tops up what has fallen below, returning the mix to plan. You choose how often this happens with Rebalance every, in months.

Also seen as: rebalancing, periodic reweighting

Fincanva previously called this a rotation; that term is retired — the app now only says Rebalance.

Defaults in Fincanva

Rebalance every is a whole number of months, chosen from 1, 3, 6, 12, 18, or 24; the default is every month.
The rebalance interval is the master clock: other timing settings — like how long a position may be held, or how long to wait before reinvesting freed-up cash — are counted in whole multiples of it (Must be a multiple of {rebalanceEvery} months), so changing the cadence re-snaps them.
The Next rebalance date is shown for each live strategy; risk conditions can trigger an extra, off-schedule rebalance when a strategy switches to its Risk-Off allocation.

Worked example

A strategy targets 60% in a stock ETP and 40% in a bond ETP, rebalancing every month. Over the four weeks after a rebalance the stock sleeve rallies and the bond sleeve is flat, so the split drifts to roughly 63/37 — the portfolio is now carrying more equity risk than intended. On the next monthly rebalance date the strategy sells enough of the stock sleeve and buys enough of the bond sleeve to snap the mix back to 60/40, and the drift-and-correct cycle begins again. Choose a longer cadence — every 6 months — and the weights are allowed to drift much further before they are reset. See rebalance frequency for how to pick a cadence.

Where this term is used

Generated · 14 pages

The pages that reference this term — so a term page is somewhere you pass through, not somewhere you land and stop.

How backtesting works

Backtesting · A backtest replays your strategy's rules across real market history to produce an equity curve and the metrics that summarise it: evidence, not a forecast.

The Fincanva loop

Getting started · The Fincanva loop is the product's core workflow: build a strategy, backtest it on real market history, analyze the result, then refine and go round again.

Choosing the instruments your strategy holds

Strategies · Choose the instruments a Fincanva strategy holds: search and add symbols or lists, scope by asset class, and read the Delisted and Not tradable badges.

Create a strategy and choose its instruments

Strategies · Create a Fincanva strategy: pick a strategy type, then complete the guided stepper — assets, risk, allocation, exit rules — and save it to backtest.

Editing a strategy: the settings cards

Strategies · Edit an existing strategy in its Settings — change Strategy type, Asset selection, Rebalance, Risk, Allocation, or Position exits, then re-run a backtest.

Guided mode and the Full editor: two ways to edit the same strategy

Strategies · Guided mode and the Full editor edit the same Fincanva strategy: one walks you through it step by step, the other puts every settings card on a single page.

Position exits: take profit, stop loss, max hold, and reinvest delay

Strategies · The four position-exit controls — Take profit, Stop loss, Max hold, and Reinvest delay — where each one lives, its range, default, and how the toggles work.

How often your strategy rebalances

Strategies · The rebalance frequency is your strategy's master clock: pick 1, 3, 6, 12, 18, or 24 months with Rebalance every, and it sets how often a backtest re-checks.

Risk conditions

Strategies · A risk condition watches a market signal and switches your strategy to its Risk-Off allocation when it triggers — and back to Risk-On when the signal clears.

How Risk-Off affects when your strategy rebalances

Strategies · A Risk-Off flip normally acts on your rebalance clock, but the condition's Auto-rebalance toggle can force an off-schedule rebalance the moment it flips.

Set up a risk condition

Strategies · Set up a risk condition from a strategy's Risk card: start from a template, choose the instrument and indicator, then set the Risk-Off and Risk-On thresholds.

Choosing a strategy type: what each of the four changes

Strategies · Fincanva's four strategy types — Single instrument, Multiple instruments, Screener and Full setup — shape the guided build and what a strategy can hold.

What is a strategy in Fincanva?

Strategies · A strategy in Fincanva is a saved, reusable set of instruments plus allocation and exit rules that you backtest and follow over time on real market data.

When risk management changes your strategy's behavior

Strategies · Risk conditions trade quick reaction against whipsaw, and defensive mode trades exposure for cash — how Confirmation delay and Auto-rebalance shift the balance.

Also referenced by 58 terms

Accuracy Allocation and allocation method Allocations chart Asset-selection modes Auto-rebalance on flip Backtest Bankruptcy rules Beta Neutral Calculation window Cash % and capital invested Combined Combined level Compute time Confirmation delay Contracts Duplicate and Copy to Mine Cost-ignoring bias Equal Weights Execution time Exit reason Fixed Weights Floating Full editor Guided mode Holdings Holdings forced assumptions Inverse Volatility Mark Live Market Cap Weighted Market-day and trading-calendar alignment Max hold months Max positions Mimicking Min Correlation Mine / Public Modern Portfolio Theory Order plan Ranking-Based Reinvest delay Reinvest profits Risk condition Risk-On and Risk-Off Risk Parity Risk templates Run status Screener attach Screener backtest Shared compute Starting capital Strategy Strategy alerts Strategy in a Combined Target allocation treemap Target notional To do, To fix, To update Transaction cost Walk-forward replay Weight drift

Deep diveHow often your strategy rebalances · How Risk-Off affects when your strategy rebalances

CompareWeight drift · Risk condition

← Previous termPrecomputed toggle variants Next term →Run status

Fincanva provides no financial advice. Backtests show what would have happened — not what will.

GLOSSARY · 193 TERMS