Percentage composition rebalancing works the same way as calendar-based rebalancing, except we simply change the condition WHEN to trigger the rebalancing.
Instead of triggering the rebalancing on a calendar-basis, we can trigger the rebalancing WHEN certain percentage thresholds are exceeded.
For example, when the SPY percentage weight exceeds 60% of the portfolio, we can rebalance the portfolio.
- WHEN marketValueAsPercentOfOverallPortfolio exceeds 60% for the SPY stock, trigger the rebalancing.
- Use the “Roll From” action on the Strategy block to perform the actual rebalancing, similar to the calendar rebalancing. (see above)