Hi Jeswin,
Could you help us understand this in more detail.
On rebalancing, basically your entry signal is run and all stocks that qualify based on your entry signal and position sizing are bought. To free up the capital to buy stocks, our system simulates a sell of stocks that do not qualify the entry signal and are in your portfolio.
If we do not sell the stocks, we might not have enough capital to buy all stocks in the entry signal.
Let us know how exactly would you like the strategy to behave at the time of entry? A concrete example would be very helpful. If we still have doubts, someone from out team will get on a call with you to understand this better.