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Well I trade without the constant rebalancing.

I just simply hate the idea of trading $100 of a stock just to make the numbers fall inline.


This is something that has concerned me for long time. Every backtester I'm aware of rebalances the stock picks every period --- but nobody invests that way. Everybody generally just sells what dropped off and then buys the new picks in equal amounts, and leaves the things that carried over alone. Unless/until some holding gets really far out of balance.

(Well, just about everybody. Maybe a few people rebalance every everything, but that's rather OCD.)

Even my own backtesters do that. It would be way much harder for the backtester to only balance the new picks while leaving the holdings that carried over the same.
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