Session goal: Incorporate fee-aware rebalancing frequency tiers into trade-pattern-v1.md, resolving the stale recommendation flagged on 2026-06-01. Phase 2 still BLOCKED on ibkr-creds — no live/simulated trading possible.
Context from previous sessions:
- Phase 1 complete: Buy-and-hold + quarterly rebalancing confirmed optimal (+4.9pp over EW)
- DRIP study done: +485pp edge over BH price-only (13 ASX large-caps, 2015–2026)
- Fee drag analysis done: annual rebalancing recommended for $2K portfolio (quarterly = 102% of capital/year in fees)
- June 1 housekeeping flagged: trade-pattern-v1.md still defaults to quarterly; needs update
Work completed:
Updated trade-pattern-v1.md — Exit Rules / Rebalancing Section
Replaced the single “Quarterly (every 90 days)” line with a fee-aware frequency tier table:
| Capital range | Frequency | Rationale |
|---|---|---|
| 5K | Annual + >2% drift threshold | Quarterly = 102% of starting capital/year in fees |
| 20K | Semi-annual or quarterly + drift filter | Fees manageable; semi-annual reduces fee drag ~30% |
| $50K+ | Full quarterly rebalancing viable | Fee impact <1% of capital annually |
For current portfolio ($2K starting capital): Annual rebalancing is now the stated default. Quarterly only if position drift > 2% between scheduled rebalances and round-trip fee doesn’t exceed misallocation cost.
Updated trade-pattern-v1.md — Expected Performance Table
Split “Fee drag (90-day)” into two rows:
- Fee drag (quarterly): ~3.7% on 99/quarter = $396/year)
- Fee drag (annual): ~1.0% on 248/year)
Added note clarifying IBKR AU rates and that annual rebalance requires 19 trades vs 38 for quarterly (~67% fee reduction).
Progress log:
- 00:05 — Session created, reviewed June 1 housekeeping findings
- 00:12 — Applied patch to Exit Rules section with tier table
- 00:14 — Applied patch to Expected Performance table with split fee drag rows
- 00:16 — Updated index.md with new latest research entry
Outputs:
trade-pattern-v1.mdupdated (2 patches applied)index.mdupdated with 2026-06-02 latest research entry
Issues / Questions: None. Documentation fix complete.
Status: done — trade-pattern-v1.md now reflects fee-aware rebalancing recommendations from the May 31 analysis.