Published: November 20, 2025.

Last Update: June 18, 2026.

The Pure Quant portfolio builder can help you create a diversified, risk-balanced portfolio and re-optimize an existing portfolio.

To learn more about how to build a portfolio from scratch, click here.

To access the Pure Quant tool, go to the Pure Quant tab on the Invest page, at the top navigational header.

Screenshot taken from a Platinum account on Jun. 18, 2026.

Step 1: Select the "Re-Optimize my Portfolio button and select your portfolio.

You will then tell the tool how many positions you want to add.  Additional positions will be added to the “Total positions count.”  

As you scroll down the page, you’ll reach a section that asks whether you want to include the portfolio cash, adjust the amount, and add additional cash to the portfolio (optional).

You can toggle fractional shares on or off. A fractional share is simply less than one full share, which lets you invest by dollar amount—for example, $50 in a $200 stock buys 0.25 share.

Below, you will see the total portfolio value, portfolio cash, and the portfolio’s Health LT distribution.

Next, you will want to set your action items.

At the bottom of the page, you’ll see your current holdings with an action menu for each position. In most cases, choose "Rebalance" for the positions you want to keep—this adjusts its share size based on equal-risk position sizing.

To exit a position and have the tool find a replacement, choose Close & Replace. 

For example, if you wish to close your Red Zone positions, you can flip the toggle at the top to “Close all positions in Red Zone,” or manually select Close & Replace for specific stocks you’d like to swap out. 

Two other controls help fine-tune the results: Lock maintains a position exactly as is (no change to the share count), while Exclude removes a stock from the calculation entirely and does not replace it.   

When you are ready to proceed to Step 2, hit the Next button at the bottom of the page.

Step 2: Choose your sources

The Maximize Diversification is set to Yes by default. Our algorithm helps you minimize portfolio risk through uncorrelated stocks.

As you can see, there are numerous sources to choose from, including TradeSmith Billionaire's Club, newsletters, baskets, markets, sectors, and more.

• The Billionaire’s Club – We track approximately 40 billionaires.
• Newsletters – Select the newsletters to which you’re subscribed.
• Model Portfolios – Automated portfolios developed for various investment strategies. 
• TradeSmith Baskets – Use pre-built baskets or manually created baskets.   
• • A basket is simply a collection of securities you want to follow regularly for trade or investment opportunities. 
• Markets – Build a portfolio using securities from the major U.S. and international markets we track. 
• Sectors – Focus on the underlying sector ETFs to capture sector-specific performance. 
• Country of Exchange – Limit your portfolio to securities from the U.S., U.K., Canada, or Australia. 
• Asset Type – Choose your preferred type: stocks, crypto, indexes, funds, and more. 
• Individual Securities – Add tickers directly to ensure the tool includes them, regardless of its rules. 
• Portfolios & Watchlists – Draw directly from the portfolios and watchlists you track in TradeSmith Finance. 
• ETFs and Mutual Funds – Include ETFs or mutual funds—or even their underlying components. 
• • The tool does not include ETFs, funds, or their components if they don’t meet Pure Quant’s rules. 
• Saved Invest Screener – Select from your saved screeners to build a portfolio. (Requires access to the Screener tool.) 

In short, Pure Quant gives you the freedom to mix and match sources, whether you prefer guru portfolios, your newsletters, baskets you’ve curated, or broader market-based inputs. 

One more step: tell the tool how to combine these choices. Use the Sources Combination toggle at the top—select All to require that results meet every selected criterion (example: newsletter picks that are U.S. and stocks). Choose Any if you’re comfortable with a broader set that matches any of your selected sources (example: newsletter picks may be U.S. and U.K. stocks).

Once you have set your source(s), hit the Build Portfolio button. 

As the tool runs, you’ll see a progress bar as it scans your holdings and identifies other securities to optimize your portfolio based on your selected sources.

At the top of the results page, you may get up to three alternative portfolios, with the top shown by default. You will also see the portfolio value, cash, Diversification Quotient (DQ), Portfolio Volatility Quotient (PVQ), Health LT distribution, and number of positions.

The DQ score indicates how well your portfolio is diversified. Think of it as a measure of how many “different baskets” your eggs are in: 

• 1 – 1.5 = Weak diversification 
• 1.5 – 2 = Moderate diversification 
• 2 or higher = Strong diversification (this is what we aim for) 

The PVQ score indicates the overall risk level of your portfolio. In this example, the PVQ is 13.35%, which is considered fairly low. For reference, anything up to 15% is seen as low risk. 

Results are organized with new positions at the top, followed by existing positions, and then closed positions. For each, the tool specifies how many shares to buy and how to adjust share sizes on positions you’re keeping. 

 Screenshot taken from a Platinum account on Jun. 18, 2026. 

The beauty of this tool is that you can customize it by adjusting the column headers displayed.    

You can edit the default view by clicking the white edit pencil within the active view or clicking the drop-down triangle to create a new view.  

You will see numerous TradeSmith indicators, as well as general, fundamental, and performance-based metrics that you can check to include in your screener views. Your views will depend on your TradeSmith subscriptions.

The order of the column headers can be rearranged by clicking and holding the column header with your left mouse key and dragging it to its preferred location. Don’t forget to hit the Save button if you make any changes.  

Flexibility is key. You can also print and export your results, giving you complete control over your data.  

To review past work, click “Back to Results List” in the upper-left. You’ll see all of your Pure Quant runs organized by tabs—for example, select Re-Optimized Portfolios to view those results. If the list gets crowded, you can delete runs you no longer need. 

Once your portfolio is in place and your exit rules are defined, the real work is ongoing management. Markets move, allocations drift, and some holdings will eventually trigger their exits. 

That’s where Re-Optimize My Portfolio earns its keep. Instead of spending hours hunting for replacements and recalculating weights, use Pure Quant to surface healthy candidates, preserve diversification, and keep position risk balanced—all in a few clicks. Make it part of your routine after an exit, a cash change, or noticeable drift, and track the impact with metrics like DQ and PVQ to keep the portfolio on plan. 

TradeSmith does not place trades on your behalf. To act on these results, log in to your brokerage account to resize positions, close positions, and add any new securities. 

When you’re satisfied with the plan, you can save the run to a new or existing portfolio or use Print/Download to keep a copy. 

Need Help? 

Our Customer Success team is ready to assist: 

• Phone: 1-866-385-2076 (toll-free) 
• Email: [email protected] 

*Note—The tabs and features you see on your TradeSmith Finance site will vary based on your subscription(s) and subscription level(s).