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Use Ranks for Security Level Model

Select Use Ranks for Security Level Model to designate a rank-based model. Once you establish a model as rank-based, you can then establish a rank for the underlying securities or submodels in that model.

When you create or edit a model, either a Security Level model or Allocation model, you can choose to make that model rank- or goal-based.

• Goal-Based Models.Goal-based models focus on obtaining the goal position for individual securities. A goal-based model gives a definite allocation mix over time. During a rebalance, Tamarac Trading will recommend trades to get goal-based models back to these exact target allocations or as close as it can.

• Rank-Based Models.Rank-based models give priority to achieving the target for the asset class or model rather than all the individual securities within the model. Once you classify a model as rank-based, you can then assign ranks—anywhere from 0 to 999—within that model. When a rank-based model is rebalanced, the targets are adjusted based on the current holdings, the rank, and the targets of the security or model. These create more model flexibility and can also be used to accommodate legacy positions and restricted securities.

For more information on creating Security Level models, see Create, Edit, and Delete Security Level Models.

For more information on how the logic of ranking works within models, see Goals and Ranks in Models.