I notice the David83 is coming off very strong and kena step in dy.
There is "rebalancing" and "reoptimization".
Rebalancing seeks to reduce asset allocation % error between current % and target %. It happens when:
1. You deposit and withdraw.
2. When the winner and loser are too far apart and no deposit/withdraw takes place.
See:
StashAway FAQ - rebalancingReoptimization happens when economic cycle change yada yada, see:
StashAway FAQ - What is reoptimization.
AFAIK reoptimization hasn't happened yet, and it's opt in. I guess when ERAA senses shit is about to happen, they will ask you before they modify your portfolio and asset allocation whether you want it to happen or not.
But rebalancing will always happen, I don't think you can tell StashAway not to sell winners and buy losers. If rebalancing doesn't take place don't bother with asset allocation already.
Edit: accidental submit.
Edit 2: I enabled auto reoptimization, and it shoved GLD into my portfolio last time. But I dunno if that could have been prevented.
Ahhh. Looks like I confused betweens rebalancing and re optimized.
Rebalancing is on % holding.
Reoptimize is coupled with ERAA and will eventually turn down your risk index that will effect the holding. Am I correct?