How does rebalancing differ for binary and continuous signals?

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Learn how rebalancing interacts differently with binary and continuous signals, and why cadence, thresholding, and turnover policy belong to the same design decision. Start with the signal shape: A binary signal often says stay in the trade until the state flips. A continuous signal often says resize as the score changes. That difference naturally pushes the strategy toward different rebalance patterns, even when both trade the same instrument universe. Why continuous signals tend to rebalance more: A continuous score retains more information about changing edge strength, so it naturally invites more frequent resizing. That can be useful when the signal decays smoothly, but expensive when the score wiggles more than the real opportunity does. Why binary signals often use wider bands: Binary triggers often pair well with threshold bands, hold rules, cooldown periods, or state persistence because those devices stop the strategy from thrashing around small score changes. What the real design question is: The right question is not 'should binary signals rebalance differently?' in the abstract. It is 'how fast does the underlying edge decay, how noisy is the signal, and what turnover can the strategy afford?' That is the level where rebalance policy becomes research instead of habit.