Portfolio Balancer

A Python script to help you rebalance your investment portfolio towards your target allocation while minimizing transaction costs.

Features

• Optimal Purchase Orders: Calculates the optimal purchase orders to minimize deviation from your target allocation.
• Transaction Limitation: Limits the number of transactions to reduce costs associated with trading.
• Minimum Investment Threshold: Ensures that at least a specified minimum percentage of your available funds is invested.
• CSV Input: Reads current portfolio positions and target allocations from a user-friendly CSV file.
• Full GUI: Graphical user interface for Linux users (tested on Ubuntu 22.04)

Exemple usage

Below is an exemple of the starting page:

You can find more screenshots in .

Installation

1. Clone the repository:

   git clone https://github.com/JeanDuboisDeBeau/portfolio-balancer.git

2. Navigate to the project directory:

   cd portfolio-balancer

3. Install the required packages:

   pip install -r requirements.txt

Usage

1. Prepare your portfolio.csv file with the following columns:

   • Asset: Name of the asset (e.g., NASDAQ, WORLD).
   • Quantity: Current quantity held for each asset.
   • Price: Current price of each asset.
   • Target Allocation: Target percentage allocation for each asset (e.g., 25 for 25%).

   Example:

Asset	Quantity	Price (€)	Target Allocation (%)
NASDAQ	43	10.00	35
WORLD	15	8.50	25
GOLD	25	12.00	20
SP500	5	5.00	10
EM	56	20.00	5
CRYPTO	0	12.20	5

2. Run the script:

   python portfolio_balancer.py

3. Follow the prompts:

   • Enter the total amount to invest (e.g., 1235.36).
   • Enter the maximum number of transactions you wish to perform (e.g., 3).

4. Results:

   The script will display the recommended purchase orders and present the updated allocation of your portfolio.

Example Output

Assuming you have the above portfolio.csv and you wish to invest €1,235.36 with a maximum of 3 transactions, the output might look like this:

Please enter the total amount to invest (€): 1623.25
Please enter the maximum number of transactions: 4

Orders to place to minimize deviation from the target allocation:
- Buy 80 shares of NASDAQ for 800.00 €
- Buy 56 shares of WORLD for 476.00 €
- Buy 67 shares of SP500 for 335.00 €
- Buy 1 shares of CRYPTO for 12.20 €

Total amount invested: 1623.20 € (100.00% of the amount to invest)

Comparison of old and new positions:
 Asset  Old Quantity  New Quantity Change  Old Weight (%)  New Weight (%)  Target Allocation (%)  Deviation (%)
NASDAQ            43           123      →           21.47           33.92                  35.00           1.08
 WORLD            15            71      →            6.37           16.65                  25.00           8.35
  GOLD            25            25                  14.98            8.27                  20.00          11.73
 SP500             5            72      →            1.25            9.93                  10.00           0.07
    EM            56            56                  55.93           30.89                   5.00          25.89
CRYPTO             0             1      →            0.00            0.34                   5.00           4.66

Allocation index: 0.7411 (1 indicates a perfect match with the target allocation)

Notes:

• The Allocation Index is a measure of how closely your portfolio matches the target allocation after the suggested transactions. A value of 1 indicates a perfect match.

Dependencies

• Python 3.x
• pandas
• PuLP

Install dependencies with:

pip install -r requirements.txt

Files

• portfolio_balancer.py: Main script containing the code for portfolio rebalancing.
• portfolio.csv: Sample CSV file for your portfolio data.
• requirements.txt: List of required Python packages.
• .gitignore: File to ignore irrelevant files/folders in version control.
• LICENSE: Project license.

License

This project is licensed under the MIT License - see the LICENSE file for details.

Contributing

Contributions are welcome! Feel free to submit issues or pull requests to improve the project.

Future Improvements

• Sell Orders Integration: Implement the ability to include sell orders, allowing the script to recommend selling over-allocated assets for a more accurate rebalancing.

• Fractional Shares Support: Modify the script to handle fractional share quantities, enhancing precision in rebalancing, especially for assets like ETFs.

• Automated Data Retrieval: Integrate financial APIs to automatically fetch current asset prices and portfolio data from brokerage accounts.

• Advanced Optimization Techniques: Incorporate more sophisticated optimization methods, such as quadratic programming, to factor in elements like risk, volatility, and transaction fees.

• Multi-Currency Handling: Extend support for portfolios containing assets in different currencies, including real-time exchange rate conversions.

• Reporting and Visualization Tools: Generate detailed reports and visualizations, such as charts and graphs, to provide insights into portfolio performance and allocation changes.

• Customization Options: Allow users to set additional constraints or preferences, such as minimum trade sizes, sector exposure limits, or ethical investment considerations.

Contact

For questions or assistance, please contact me.