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LearnWhat is the Drift Score?
Rebalancing

What is the Drift Score?

Measures how far your actual allocation is from your targets — lower is better.

Overview

The Drift Score tells you how closely your current portfolio matches the target allocation you've set. It is expressed as a percentage: 0% means perfectly on target, higher values indicate larger deviations.

How it's calculated (RMSE)

For each targeted asset, the system computes: drift = actual % − target % It then calculates the Root Mean Square Error (RMSE) across all targeted assets: RMSE = √( (drift₁² + drift₂² + ... + driftₙ²) / n ) Squaring the drifts penalises large deviations more heavily than small ones, making RMSE sensitive to outliers.

Severity thresholds

0 – 2% Excellent — portfolio is well aligned 2 – 5% Good — minor drift, no urgent action needed 5 – 15% Needs attention — consider rebalancing soon 15%+ Rebalance recommended — significant deviation from targets

Health score

The circular gauge on the dashboard converts the RMSE into a 0–100 Health Score for easier reading: Health = max(0, 100 − RMSE × 10) A score of 80+ is green (aligned), 50–79 is yellow (minor drift), below 50 is red (rebalance needed).

When does it reset to 0?

The Drift Score drops to 0% once you execute the trades shown in the Trade List tab and your actual holdings match your targets. It rises again whenever market price movements or deposits shift your allocation away from the targets.

NextHow to set target allocations

Related Articles

How to set target allocations

Define the percentage of your portfolio you want each asset to represent.

Understanding the Trade List

A prioritised list of buys and sells needed to bring your portfolio back on target.

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