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Topic cluster / Execution and rebalancingRebalancing on signal change makes more sense when the edge only becomes meaningful after a discrete state move and a fixed calendar would mostly generate small corrective trades.
What to remember
Rebalancing on signal change usually fits better when the opportunity really is state-driven. If the portfolio should only move after a regime flip, a threshold crossing, or a material ranking change, then a calendar can end up manufacturing turnover that the edge never asked for.
The key question is whether time itself carries information. If nothing meaningful happens between scheduled checks, waiting for the state change is often cleaner. But if the process is noisy or the state change itself is ambiguous, trigger-based rules can easily turn into overactive rules wearing a smarter label.
The main traps are unstable triggers, optimistic latency assumptions, and forgetting that several sleeves may need to share one operational cadence even if one model wants to fire more often than the rest.