rebalancing

name	rebalancing
description	Rebalance a portfolio to target allocation weights. Computes required trades from current allocation and executes them with user confirmation.

Portfolio Rebalancing

Systematically rebalance a portfolio to target weights using the allocation and trading tools.

Rebalancing Workflow

portfolio_allocation → compute target trades → confirm with user → execute via create_order

Step 1: Assess Current Allocation

portfolio_allocation [quote=USDT]

Review per-asset weights and concentration warnings (>30%).

Step 2: Define Target Allocation

Ask the user what target weights they want, e.g.:

• BTC: 50%, ETH: 30%, USDT: 20%

Step 3: Compute Required Trades

For each asset:

trade_value = (target_weight - current_weight) × total_portfolio_value
trade_amount = trade_value / current_price (from get_ticker)

Positive = buy; negative = sell.

Step 4: Review and Confirm with User

Present the trade plan:

• List all proposed trades with symbols, sides, amounts, and estimated costs
• Ask for explicit confirmation before executing

Step 5: Execute Trades

For each confirmed trade, call create_order:

• Use limit orders at mid-price (bid/ask from get_orderbook) for large trades
• Use market orders for small trades (<$500 notional)
• Verify each fill with get_order before proceeding to the next

Step 6: Verify Final Allocation

Call portfolio_allocation again to confirm the rebalance completed as intended.

Safety Rules

1. Never exceed 5 orders per minute (rate limit — check get_order_rate_status).
2. Always confirm with the user before executing any real order.
3. Start with paper_trade for each planned trade to preview the notional value.
4. Preserve at least 5% USDT/stablecoin as a buffer — never rebalance to 100% risk assets.
5. Stop immediately if any order fails — call get_open_orders to check for dangling orders.

Notes

• Use transfer_funds if assets need to be moved between spot and futures wallets first.
• Consider transaction fees when computing trade amounts (typically 0.1% per trade).
• For large portfolios, break rebalancing into multiple sessions across different days.