Why wasn’t a buy order generated for my substitute security after a TLH sell?
Short answer:
A buy order is only generated if the substitute security is underweight after the system reassigns target weight and evaluates the account during a trade build.
⚠️ Managed Portfolio sleeves work differently
The behavior described below applies to model sleeves. In Managed Portfolio sleeves, you must run the rebalancer to buy the substitute. See Managed Portfolio Sleeves further down this article.
How it works
After a TLH sell:
The system temporarily reassigns the harvested security’s target weight to the substitute security (typically for 30 days to avoid wash sales)
This creates a new effective target weight
The account is then evaluated during the next trade build
Why a buy may not occur
A buy order will not be generated if:
The substitute security is already held, and
The existing position meets or exceeds the new target weight, or
The position remains within its tolerance band, even after the weight is added
In these cases, the system avoids placing a trade to prevent unnecessary activity or overweight positions.
Are substitute securities bought dollar-for-dollar with the TLH sale?
No.
Substitute securities are not direct dollar replacements for the harvested position.
Instead, the system determines the buy amount based on:
The security’s current weight vs. new target weight
Available cash in the account
Tolerance bands
What this means in practice
The system may buy more than the TLH proceeds
It may buy less
Or it may not buy at all
When are substitute buy orders generated?
Buy orders are only considered during the account’s next trade build.
A trade build does not always occur on the same day as the TLH sell
As a result, a buy order may not appear immediately
Is the absence of a buy order a trade error?
No—this is expected behavior in many cases.
A buy order may not be generated because:
A trade build has not yet occurred, or
The substitute security is already appropriately allocated (at target or within tolerance)
The harvest was in a Managed Portfolio sleeve and the account has not been rebalanced
Substitution Rules & Target Weights
How is the substitute security’s target weight calculated?
When a substitution rule is applied (e.g., sell CELH → substitute with MNST):
The system transfers the harvested security’s target weight to the substitute
This creates a new effective target weight
The updated target is evaluated during the next trade build
What if the account already holds the substitute security?
The system compares:
The current market value of the existing position
Against the new target weight (including transferred weight)
Outcome:
If the position is not underweight, no buy order is generated
If the position remains within tolerance, no trade may be triggered at all
Managed Portfolio Sleeves
How do substitute buys work in a Managed Portfolio sleeve?
In Managed Portfolio sleeves, substitute buys are not placed by a system trade build. After a harvest, the proceeds stay in cash until you run the rebalancer.
The rebalancer builds the substitute buy from the substitution restriction
You can edit the trades and review the tax impact before submitting
After the wash sale period ends, rebalance again to sell the substitute and buy back the original symbol
What if the target changed since the harvest?
If the account’s target portfolio changed after the harvest and the account was not rebalanced, the rebalance follows the current target. It may buy a new target holding instead of the substitute or the original symbol. Always review the proposed trades before submitting.
Troubleshooting: Missing Substitute Buy Order
If you expected a buy order but don’t see one, check the following:
1. Trade Timing
Has a trade build occurred since the TLH sell?
Buy orders are only evaluated during a trade build
2. Existing Holdings
Is the substitute security already held in the account?
3. Weight After Reassignment
Does the current position already meet or exceed the new target weight?
4. Tolerance Bands
Is the position still within its tolerance range, even after the weight transfer?
5. Sleeve Type
Was the harvest in a Managed Portfolio sleeve? If so, run the rebalancer to build the substitute buy.
Special Reinvestment Requests
What if I want to reinvest all proceeds into the substitute security?
If your goal is to fully reinvest TLH proceeds into the substitute security, regardless of current holdings:
Contact Support before initiating the TLH trade
The team can review available options or alternative approaches
📞 561-559-7676
💬 Chat Icon at the bottom right of the dashboard
Key Takeaway
Substitute buys are not automatic after a TLH sell.
In model sleeves, they only occur if the system determines the security is underweight and outside tolerance during a trade build. In Managed Portfolio sleeves, they only occur when you run the rebalancer.