Indicator Overview

The Portfolio Rebalancer is a strategic modeling tool designed to compare the efficiency of two primary investment philosophies: Static Holding (HODL) versus Dynamic Rebalancing. In a typical Buy and Hold scenario, a single high-performing asset can grow to dominate your portfolio, significantly increasing your risk exposure.

This tool simulates a disciplined alternative where the portfolio is periodically reset to its target weights, effectively forcing a strategy of selling high and buying low.

The chart plots both paths simultaneously: the Grey Dashed Line tracks the HODL strategy, while the Green Line tracks the rebalanced strategy. This visual gap represents the "Rebalancing Alpha", the additional wealth generated simply by harvesting volatility.

How To Use

The tool is used to identify the optimal maintenance schedule for a multi-asset portfolio across different market cycles.

• Customizing the Backtest: Set your Start Date and Initial Capital. The system pulls historical data as far back as 1980, dynamically identifying the common start date where all selected assets were active to ensure a mathematically fair comparison.

• Building the Portfolio: By default, the model starts with a 50% BTC / 50% SOL split. You can add up to 10 assets (cryptos or stocks). Ensure your total allocations equal exactly 100% to proceed.

• Setting the Frequency: Choose how often the portfolio should rebalance (Monthly, Quarterly, or Annually). Select "No Rebalance" to see the pure performance of your initial entry without any maintenance.

• Understanding the Stats:

1. HODL Final Value: The ending dollar balance if you never touched the original units.

2. Rebalanced Final Value: The ending dollar balance using the periodic reset strategy.

3. Rebalancing Alpha: This critical percentage shows the outperformance (or underperformance) of rebalancing. A positive green figure confirms that the strategy successfully compounded gains from market volatility.