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Default Buy Order

Rebalance Settings on the Rebalancing System Settings page allow you to customize how Tamarac Trading adheres to logic during a rebalance and how it calculates information during that process. These settings are widely applicable to many different rebalance types. Default Buy Order determines the priority order when buying securities.

These are the options available: 

Default Buy Order More Information
Most Underweight Security

This option prioritizes underweight securities when determining buy order. Buy order is determined in this order: 

  1. Any securities under their minimums are prioritized first, ordered by most underweight. Models aren't a factor, only securities are.

  2. Tamarac Trading finds and purchases the most underweight security that doesn't have restrictions.

  3. After each buy, this process is repeated until cash is depleted.
Most Underweight Security from Most Underweight Security Level Model

This option respects deviation in underweight Security Level models first when determining buy order. Buy order is determined in this order: 

  1. Models under their minimum within an underweight model are prioritized first, ordered by most underweight. Tiers aren't respected, only Security Level models are.

  2. Tamarac Trading finds and purchases the most underweight security in that Security Level model that doesn't have restrictions.

  3. After each buy, this process is repeated until cash is depleted.
Most Underweight Security from Most Underweight Model

This option respects deviation at higher-level tiers when determining buy order. Buy order is determined in this order:

  1. Models under their minimum within an underweight model are prioritized first, ordered by most underweight.

  2. Going from the top down, Tamarac Trading finds the most underweight tier. It orders the underweight models within that tier by most underweight until finding the most underweight Security Level model in that tier.

  3. Within that Security Level model, underweight securities are sorted by most underweight, and Tamarac Trading purchases the most underweight security that doesn't have restrictions.

  4. After each buy, this process is repeated until cash is depleted.
Highest to Lowest Rank from Underweight Model

This option respects ranks you've set for your models, regardless of whether those models use ranks or not. Buy order is determined in this order:

  1. Models under their minimum within an underweight model are prioritized first, ordered by most underweight.

  2. Going from the top down, Tamarac Trading finds the most underweight tier. It orders underweight models within that tier by rank until finding the highest ranked Security Level model that is also underweight.

  3. Within that Security Level model, underweight securities are sorted by rank and Tamarac Trading purchases the highest ranked underweight security that doesn't have restrictions.

  4. After each buy, this process is repeated until cash is depleted.