Why Method Selection Matters
The method you choose determines:
Which positions are traded
How allocations shift
Whether portfolio stays aligned to target
Available Methods
Rebalancer (Target-Based)
Uses target weights to raise/invest cash
Keeps portfolio aligned to model
Critical Rule
If no target is assigned → account may be liquidated to cash
Best for:
Target-driven portfolios
Maintaining allocation discipline
Pro Rata (Current Allocation-Based)
Trades proportionally based on current holdings
Best for:
Maintaining existing allocation shape
Avoiding drift changes
Limitation:
No trades if account is 100% cash
Equal Weight (Sleeve-Based)
Distributes trades evenly across sleeves
Best for:
Multi-sleeve portfolios
Balanced adjustments
Custom (Advisor-Directed)
Manual allocation of cash by dollar amount
Best for:
Precise control
Special scenarios
How to Choose
Goal | Method |
Maintain target allocation | Rebalancer |
Maintain current allocation | Pro Rata |
Even distribution | Equal Weight |
Full control | Custom |