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Set Min/Max Range
Set Min/Max range, an available setting for both Security Level models and Allocations models, lets you create a relative tolerance band around your models' target allocations to allow for market movement away from that target. Setting a min and max reduces the number of recommended trades and allows advisors to quickly monitor accounts for rebalance opportunities.
When setting min/max range, bear in mind the following best practices:
Begin setting your min and max range at 20% deviation in either direction. For example, if a model has a target allocation of 40%, your range would be a min of 32% (40% target – [40% target × 20% deviation]) and a max of 48% (40% target + [40% target × 20% deviation]). For smaller models, consider setting your relative deviation lower.
Your min doesn't have to be symmetrical with your max. You can set a greater band on either the min % or the max % instead of using Set Min/Max Range. For example, if a model's target is 40%, you can set the min at 40% and the max at 48%.
For more information on min/max ranges in your models, see Min/Max Logic in Models
For more information on creating Security Level models, see Create, Edit, and Delete Security Level Models.
For more information on creating Allocation models, see Introduction to Allocation Models.