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Update 9. Rebalancing Positions.ipynb
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Improve wording.
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edtechre committed Jun 24, 2024
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"source": [
"## Equal Position Sizing\n",
"\n",
"Let's assume that we want to rebalance a long-only portfolio at the beginning of every month to make sure that each asset in our portfolio has a roughly equal allocation.\n",
"Let's assume that we want to rebalance a long-only portfolio at the beginning of every month to make sure that each stock in our portfolio has a roughly equal allocation.\n",
"\n",
"We first start by writing a helper function to detect when the current bar's date is the start of a new month:"
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"id": "37b1ce80",
"metadata": {},
"source": [
"Next, we implement a function that will either buy or sell enough shares in an asset to reach a target allocation."
"Next, we implement a function that will either buy or sell enough shares of a stock to reach a target allocation."
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"source": [
"If the current allocation is above the target level, the function will sell the needed shares of the asset, while if the current allocation is below the target level, the function will buy the needed shares of the asset.\n",
"\n",
"Following that, we write a ``rebalance`` function to target each stock to an equal allocation at the beginning of every month:"
"Following that, we write a ``rebalance`` function to target each asset to an equal allocation at the beginning of every month:"
]
},
{
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