In this article, we will look at how to rebalance stock portfolio with STRATxAI in just a few minutes.

Rebalancing your portfolio is an important part of managing your investments. It means buying and selling positions in your portfolio to get back to your original asset allocation.

For stock-pickers, this can be a laborious process but as a quantitative investor using STRATxAI to manage your portfolios you can enjoy simple and easy rebalancing.

Have an in depth read about rebalancing here or continue on for the step by step guide to rebalancing your STRATxAI portfolio. Both the Manual and Automated portfolios process will be covered.

Keeping a portfolio up-to-date is very important as it keeps the portfolio in line with the trading strategy. When a trading strategy is backtested, rebalancing can play a huge role in the variability of returns.

Depending on the STRATxAI strategy your portfolio is based on, you will have a rebalance period each month, quarter or year. However you can choose to rebalance at any time you like to keep your portfolio up to date.

Available to all Established and Xplorer plan users.

Navigate to the portfolio you want to rebalance and click the Rebalance button in the portfolio overview pane on the left.

This optional step allows you to add an additional contribution (cash) to your portfolio. If you don’t want to add any more cash, you can click Skip Step.

Optional step to increase your investment

This step show you the list of stocks and the number of shares which you will need to sell.

What’s going on in the background: The trading strategy algorithm compares your portfolio to the current strategy screen and runs an equal-weighting algorithm over the full portfolio.

As this is a Manual portfolio, you will now go to your online broker to execute the selling and buying of stocks using the list provided.

Use the S and X functions to indicate if you have sold a stock

You may use a market order or a limit order to buy the stock. A market order should execute instantaneously (using the market’s best price), whereas a limit order could take some time to execute (you decide the price). Most people building an STRATxAI portfolio will choose to use a market order.

S- Whatever price you sold the stock for, enter that into the Share Price input in STRATxAI and click the red S button – this signifies you have sold the stock in your broker.

X- If you do not want to sell a stock or cannot sell a stock for whatever reason, click the X button – this signifies you did not sell the stock and will remove it from the rebalance.

If the stock market is closed when you’re building the portfolio, you may not know the exact price which you sold the stock for. If that is the case, take your best guess, or leave the default price – you can always edit the transaction price afterwards.

Note: STRATxAI does not endorse or recommend any individual stock shown in this list; the stocks are purely generated by the algorithm.

When you have finished updating your stocks, click the Next button to move on.

This step show you the list of stocks and the number of shares which you will need to buy.

It is identical to the previous step, but for buying securities rather than selling them.

Go to your online broker and work your way through the list of stocks, buying each stock shown.

Take an action for each stock, or quick buy all at once

Rebalancing is almost complete

When you have taken action on each stock, click the button Complete Rebalance to finish the rebalancing process and go the portfolio.

From portfolio overview you can view performance, check out key metrics and view your holdings.

From the Transactions tab you can view transaction level data (every buy or sell you have ever made). You can click a transaction row to edit it (eg. change the purchase price or the number of shares purchased). You can also click New Transaction to buy/sell a stock in the portfolio – you can add any publicly-traded company in the USA to the portfolio.

You will be notified when your next rebalance is due via email.

Available to all Established and Xplorer plan users with the augmentation of Connect.

First, make sure you have established a live connection with your broker account, check your Dashboard for your live connections. STRATxAI offers integration with Interactive Brokers and Alpaca Markets

Next, navigate to the Portfolio you want to rebalance and click the Rebalance button in the portfolio overview pane on the left.

Note: The stock market must be open for you to be able to rebalance your portfolio live (9:30am – 4pm EST).

This optional step allows you to add an additional contribution (cash) to your portfolio. If you don’t want to add any more cash, you can click Skip Step.

Optional step to invest more in your portfolio

This step show you the list of stocks and the number of shares which you will sell.

What’s going on in the background: The trading strategy algorithm compares your portfolio to the current strategy screen and runs an equal-weighting algorithm over the full portfolio. The list shown are all the stocks and shares that have left the screen.

Note: STRATxAI does not endorse or recommend any individual stock shown in this list; the stocks are purely generated by the algorithm.

Simply click to Confirm Orders and the trades will be sent to your broker

Once the orders have been filled, click Next to move on

Buying stocks is identical to the previous step, but for buying securities rather than selling them.

Click Confirm Orders for the trades to be executed by your broker

Once all the orders are filled, move on to view your portfolio

From portfolio overview you can view performance, check out key metrics and view your holdings.

From the Transactions tab you can view transaction level data (every buy or sell you have ever made). You can click a transaction row to edit it (eg. change the purchase price or the number of shares purchased). You can also click New Transaction to buy/sell a stock in the portfolio – you can add any publicly-traded company in the USA to the portfolio.

If a stock in your portfolio goes through a stock split, delisting, name change, or any other event, it will be handled automatically. These are summarised as corporate actions and are covered in detail here.

You will be reminded when your next rebalance is due via email.

Here are some of the common reasons for an error message:

• Your free trial of Premium strategies has expired, and you are trying to rebalance a Premium strategy.
• The market is closed.
• You are not connected.
• There are existing open orders in your brokerage account.

If you encounter any additional problems, see if it helps to log out and log back in again. Otherwise please contact us and we would be happy to assist.