Traditional Investing & Portfolio Theory

What are rebalancing bands and how do they work?

Rebalancing bands are pre-set tolerance ranges around a portfolio's target weights that trigger a rebalance only when an asset drifts beyond the band. Instead of trading on a fixed calendar alone, you act when a holding moves past a threshold, say five percentage points from target. For example, a 20% target with a five-point band is left alone between 15% and 25%, and trimmed or topped up once it breaks out. Bands aim to control drift and limit unnecessary trading; they do not protect against loss or guarantee any result.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.