Portfolio Constraint

Checks candidate weights against configured portfolio limits.

When to use

Use it before Rebalancer when target weights must meet concentration or other supported portfolio rules.

Example

With the default constraintProvider role, connect candidate Weights to this node and its Constraints data output to Rebalancer; there is no control path through this node. Choose the guard role when you need explicit Passed and Violated control branches.

Try it here

Explore Portfolio Constraint

Checks candidate weights against configured portfolio limits.

Exercise steps

1. Compare the constraint-provider and validation roles.
2. Inspect how control ports and the Constraints output change.

Start lesson

Test a concentration limit

Suppose Weight Calculator produces two equal targets of 0.5 each. Set Max weight per asset to 0.4: each target exceeds that cap. In the default constraintProvider role, connect candidate Weights to the node and then Constraints to Rebalancer so the rebalance stage can evaluate the proposed targets. The provider has no Passed or Violated control outcome. An unset optional limit is not automatically a 40% rule; set each constraint you intend to enforce.

Choose guard only when the graph needs explicit control branches before proceeding. Feed the candidate Weights to the guard, send Passed onward, and give Violated a safe separate path. If the intended budget is 80% with two equal targets, each is 0.4, satisfying a max-0.4 concentration cap in this simplified example. Other active limits and available risk data can still affect the result. Review Portfolio rebalancing for the surrounding graph.

When a volatility or drawdown limit activates Covariance source, its Custom choice is reserved and disabled. Use an available source and confirm the required historical data before interpreting those limits.

Common problems

Only the guard role exposes control outcomes. Check Role before connecting the node, and verify that the constraints concern the intended universe.

Next steps

Review the generated Parameters, Outcomes, and Data Ports on this page, then open the related guides for the complete workflow.