How often should it rebalance?

Threshold-based rebalancing usually beats a fixed calendar, because it acts when weights actually drift rather than on a date.

Does rebalancing improve returns?

It controls drift and concentration. In a strong one-way trend it usually costs return — that is the trade being made.

Can I add an asset later?

Yes, and the next rebalance will buy into it from the others to hit the new weights.

Can I exclude an asset from rebalancing?

Anything outside the target set is left alone. That is the way to hold a long-term position while rebalancing the rest.

Bot TradingIntermediate

How to Configure a Portfolio Rebalance Bot

Automatically maintain your target asset allocation by rebalancing your portfolio at set intervals or threshold triggers.

8 min

5 steps

A rebalance bot holds a portfolio at target weights, selling what has run and buying what has lagged. It is a discipline mechanism rather than a return engine: in a sustained trend it will trim the winner and add to the laggard, which is exactly what it is for and exactly what will feel wrong at the time.

Before you start

Target weights that add to 100 percent, and assets you are content to hold at any weight.
An understanding that each rebalance is a set of trades with fees attached.

Create a Rebalance Bot

Navigate to Trading Bots > Create Bot > Rebalance. This bot maintains a target percentage allocation across multiple assets. For example, 50% BTC, 30% ETH, 20% SOL.

Define Your Target Allocation

Add the assets you want in your portfolio and set target percentages. The total must equal 100%. Choose assets that align with your investment thesis. You can include any assets available for spot trading on Midas.

Set Rebalancing Triggers

Choose when rebalancing occurs: on a schedule (hourly, daily, weekly) or when any asset deviates from its target by a threshold percentage (e.g., rebalance when any asset drifts more than 5% from target). Threshold-based rebalancing is typically more efficient.

Configure the Initial Investment

Enter the total amount to invest. The bot will purchase assets according to your target allocation. If you already hold some of the target assets, the bot can incorporate existing balances into the allocation.

Launch and Monitor

Review the configuration and start the bot. The dashboard shows current allocation vs. target, historical rebalancing actions, and overall portfolio performance compared to a buy-and-hold baseline. Rebalancing ensures you systematically buy low and sell high by trimming outperformers and adding to underperformers.

If something goes wrong

The bot rebalances constantly.: The drift threshold is too tight for the volatility of those assets. Widen it — each rebalance costs fees, and the benefit does not scale with frequency.
An asset was sold that you wanted to keep.: Rebalancing sells outperformance by definition. If an asset should not be trimmed, it does not belong in the rebalanced set.
The bot did not trade despite visible drift.: Drift is measured against the threshold you set, not against your eye. Check the threshold and the minimum trade size before assuming it is stuck.

Frequently asked questions

How often should it rebalance?: Threshold-based rebalancing usually beats a fixed calendar, because it acts when weights actually drift rather than on a date.
Does rebalancing improve returns?: It controls drift and concentration. In a strong one-way trend it usually costs return — that is the trade being made.
Can I add an asset later?: Yes, and the next rebalance will buy into it from the others to hit the new weights.
Can I exclude an asset from rebalancing?: Anything outside the target set is left alone. That is the way to hold a long-term position while rebalancing the rest.

More in Bot Trading