When does FireCalc 'rebalance' ?...............



I searched for this answer on the FireCalc page as well as this forum. I could not find a discussion on this. Forgive me if this is 'old ground', but I just could not find anything on this. :confused:

I was pondering what FireCalc was doing and started thinking about this scenario. FireCalc maintains a fixed Stock/Bond ratio, but in real life we don’t.

For example : If you are 50% stocks and 50% Bonds with $1Million and the Stock market drops 50% one day you now have $750K and roughly 67% is now in bonds. I am guessing that FireCalc ‘rebalances’ your portfolio and you have immediately bought some stocks at this cheaper price. And instead of having $250K in stocks, you now have $325K in stocks. In real life you would probably rebalance at the first of the year.

So my questions are:

1.) When does FireCalc Rebalance?
2.) How do you think this would affect a real life portfoilo?
My wild a$$ guess: yearly. That is, it doesn't explicitly consider rebalancing, but it probably looks how a portfolio with the given asset allocation would do on each year. That's the same as yearly rebalancing.
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