How does a Risk-Off state impact portfolio rebalancing in Fincanva?

Modified on Mon, 14 Apr at 6:49 PM

When a Risk-Off condition is triggered in Fincanva, it can significantly influence the timing of a portfolio's rebalance. It's important to note that automatic notifications for Risk-On or Risk-Off state changes are not currently available. Users should regularly check their portfolios to avoid missing potential rebalancing actions.

  • If Trigger Rebalance is enabled in the Risk Management Settings, the portfolio or model will rebalance  when a Risk-Off (or Risk-On) condition is met.

  • If Trigger Rebalance is not enabled, the allocation changes due to Risk-Off will only be applied during the next scheduled rebalance.

  • This means that unexpected rebalances (outside of your planned schedule) can happen — but only if the “trigger” setting is active.

  • To stay in control of your portfolio’s risk exposure and allocation strategy, it's recommended to frequently monitor your simulations and portfolios manually.

This behavior ensures flexibility in managing downside risk but also requires proactive engagement to maintain optimal performance.

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