The Risk Rebalancer uses our proprietary volatility metric, the Volatility Quotient (VQ), to allocate more capital to less volatile equities and less capital to your more volatile equities.

The Risk Rebalancer takes a portfolio of stocks and re-balances available capital among the component stocks.

 

Please note: The Risk Rebalancer is only available in Premium and Lifetime accounts.

click risk rebalancer

To access the Risk Rebalancer, please take the following steps:

  • Click on the Research tab (1) in the main menu at the top of the page.
  • Click on the Risk Rebalancer (2) in the submenu. The following page will display:

rebalancer options

Here are the options before you balance.

  • You can watch the tutorial video if you have questions (1).
  • Select a single portfolio from the drop down list (2). You can also select all or multiple portfolios by clicking on the different portfolio titles.
    • To select multiple portfolios, click on the first portfolio you would like to see. Then, click in the white space in the drop-down box to select another portfolio.  
  • Total Value(3) is a sum of the value of all the long equities in the portfolio.
    • This amount may include your cash and accumulated dividends. This is the amount that will be rebalanced across all your component stocks.
  • Current Securities (4) is the sum of the value of all long equities in the portfolio – not including cash .
  • Include Cash (5) can be checked if you would like to allocate your cash to the rebalanced portfolio. You can edit this value with the Pencil Icon.
  • Include Dividends(6) can be checked if you would like accumulated dividends from these equities to be included in your rebalancing. This is not turned on by default.
  • Advanced Options: You can exclude any SSI Stopped Out Positions (7)
  • Finally, click Rebalance (8).

Tip: The biggest value of the Risk Rebalancer is in identifying unbalanced position sizes. This may include large position sizes in very volatile stocks or small position sizes in low volatility stocks.

After clicking Rebalance, you will see the results.

 

The results are broken into three sections:

  • The Rebalance Overview (1)– summary results
  • The Rebalanced Results (2)– details on which position changes occurred
  • Steps to Take (3) – a quick look at what steps you would need to take to achieve the Overview Results

Tip: Unconfirmed synchronized positions that have missing data will appear in gray. These positions will be excluded from the risk rebalance calculations. To confirm these positions, click the “Edit” link, and enter the necessary details.

Rebalance Overview:

rebalancer tabs

This page shows you a basic overview. It displays your current PVQ and how rebalancing would impact that. It also shows you what your risk per position could be and how your risk is allocated.

You can click on the Rebalanced Results (2) to see how these results are met. Steps to take (3) will show you exactly how many shares to buy or sell to achieve this result.

Rebalanced Results:

rebalanced results
The results view will show you all the information you need to know on what the rebalancer has done. It also allows you to tailor the results to your specific situation. It allows you to “Lock” (1) positions that you would like to keep in the rebalance calculations but not adjust the shares of, remove (2) positions completely from the rebalancer calculations, or add new tickers (3) to the calculations.

The columns shown in the results are:
  • Actions: Allows you to lock or remove positions
  • Symbol
  • SSI Status: your position’s current Stock State Indicator
  • VQ: Current Volatility Quotient (VQ%) for each long stock in your portfolio
  • Latest Close: Latest Close price
  • Position Size (dollar value): Amount of money invested in each position
    • Current Size
    • Rebalanced Size
  • Position Size (Percentage): The percentage that each position represents in the portfolio(s)
    • Current Size
    • Rebalanced Size
  • Risk % per position: The percentage of risk of each position in comparison to the rest of the portfolio(s)
    • Current Size
    • Rebalanced Size
  • Shares: Number of shares in each position
    • Current Shares
    • Rebalanced Shares

IMPORTANT: If you make any changes, such as locking a position or adding a new ticker, you must select Update Results (4) for changes to be included in results.

Actions from this page include:

  • Saving as a new portfolio (5)
  • Exporting to Excel (6)
  • Printing to hard copy(7)

Note: The Risk Rebalancer currently includes only long equity positions. Short positions and options are not included at this time.

Steps to Take:

steps to take

The final portion of the Risk Rebalancer is the Steps to Take. This is a clean view to quickly show you what would need to be done to achieve the equalized risk adjustment to your portfolio(s) should you choose to implement this rebalancing strategy.

You can Save this as a New Portfolio (1) in TradeStops, Export to Excel (2) or Print (3) to Hard Copy from this page.

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