What Rebalance is
Smart Rebalance holds a basket of assets at target weights — say 50% BTC / 30% ETH / 20% USDT. As prices move, the weights drift off target; Rebalance trims what grew and tops up what lagged, pulling the basket back to plan. It's disciplined capital management, not trading.
Key parameters
- •Basket & target weights — the assets and their intended shares.
- •Rebalance trigger — how far a weight may drift before it acts (a threshold or a schedule).
When to use it
- •A diversified basket you want kept in balance over time — with a rule instead of guesswork and emotion.
When NOT to use it
- •Single-asset speculation or short-term trading — rebalancing needs several assets to move value between.
The pitfall
Cadence. Rebalancing too often bleeds fees; too rarely lets the basket drift far from plan. And remember what it does not do: it manages *proportions*, not *direction* — if the whole basket falls, rebalancing won't save it.