Rebalancing Simulator
Enter your holdings and target weights, then compare in one run the actual historical performance of no rebalancing vs periodic (monthly/quarterly/semiannual/annual) vs threshold-based (5%/10%) rebalancing. Rebalancing is, at its core, disciplined selling of strength to buy weakness — it gives up a little bull-market tailwind in exchange for structural protection in drawdowns. How often to rebalance and how much drift to tolerate should not be decided by feel: look at three numbers — return, volatility and turnover — then decide whether it is worth it.
Presets · Share Link
Save multiple holdings + strategy combinations and switch between them for cross-comparison. The share link encodes the current setup into the URL — anyone who opens it can rerun it.
Holdings & Target Weights
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Total weight 100.0%
Rebalancing strategies (multi-select, 3-5 recommended)
How to read this report?
- CAGR: Compound annual growth rate — higher is better.
- Annualized volatility: Standard deviation of returns (annualized). Rebalancing usually lowers volatility, but does not necessarily raise returns.
- Sharpe: Excess return earned per unit of volatility (net of a 3% risk-free rate).
- Max drawdown: The deepest peak-to-trough decline over the period.
- Turnover: Total rebalancing trade value / initial investment. Higher means larger trading costs and tax impact.
- Final weight drift: Average deviation of each position from its target at the end. No rebalancing usually ends up heavily tilted toward the biggest winner (concentration risk).