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Select Tactical Rebalance Settings
The Select Tactical Rebalance Settings dialog box lets you specify the settings you'd like to use for a tactical rebalance of the selected account or accounts. This includes which models you'd like to tactically rebalance, how you'd like to treat underweight allocations, what you'd like to do with cash, and more.
Once you use Set Rebalance Settings to choose a tactical rebalance and Rebalance Using Settings, the following options become available on the Select Tactical Rebalance Settings dialog box:
| Available Setting | More Information |
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Available |
Lists only the Security Level and Allocation models that are within the accounts you selected. |
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Selected |
Lists the models you've added in which you'll complete the tactical rebalance. |
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Use model goal |
This option completes the tactical rebalance on all models that are selected, including any submodels of the models you've selected, and then rebalances the selected models back to their target weights. |
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Use current weight |
This option completes the rebalance and keeps the current weight of the selected model. Any submodels of the selected model or models will be rebalanced relative to the parent model. If the selected Allocation model or any of its submodels are outside their min/max tolerance ranges, Tamarac Trading will rebalance the selected models back to their target weights. This option has the potential to create fewer trades and can be good for situations where the client's holdings are performing well and you don't necessarily want to sell out of those securities in order to rebalance. |
| Available Setting | More Information |
|---|---|
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Rebalance only if model is outside of its min/max |
When selected, the models you select will only be rebalanced if the model's holdings within the selected accounts are outside the model's min/max tolerances. |
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Invest excess cash |
When selected, this option causes excess cash in the account—for example, cash generated from selling securities within the rebalanced model or excess cash not allocated to a model or cash reserves—to be allocated towards buying underweight securities in all models within the accounts selected. |
| Available Setting | More Information |
|---|---|
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Only use cash in excess of model cash target for the accounts |
When selected, cash will only be used if there's cash in excess of the amount needed to meet the targets for any cash within your models. This is the most restrictive option. |
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Use all available cash, including cash allocated to the model |
When selected, Tamarac Trading will use all cash in the account to rebalance the selected models as close to their targets as possible with respect to total account value. This may leave one or more unselected models in the account underweight if the account has cash available for trading. |
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Sell overweight securities in the account to generate cash for the specific model rebalance |
When selected and the selected model is underweight and the account does not have extra cash, the account will sell the most overweight securities down to their goals to raise the cash necessary to bring the selected underweight models to their targets in the selected accounts. This is the least restrictive option. |
The Tactical Rebalance is a model-specific rebalance that lets you choose which models you want to rebalance, either Security Level models or Allocation models, and rebalance within that model and all submodels underneath it. Depending on how your models are configured, you can tactically rebalance specific asset classes or sectors without completing a rebalance on the entire portfolio.
For more information, see Tactical Rebalance, Start the Rebalance Process, and Trading Workflow.