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Objective class

As explained in Build a Robo-Advisor with Python (From Scratch)

An objective class is a software class that generates an objective function for portfolio optimization.

An objective class generates the objective function used to solve a portfolio optimization problem. Its interface accepts the date, tax-lot holdings, optimization variables, and portfolio information. section 13.3.2

Rebalancing objective inputs

A rebalancing optimizer can combine a current date, target portfolio, tax-lot DataFrame, decision variables, and portfolio investment value to generate a tax or tracking-error objective. section 13.3.2

How Build a Robo-Advisor with Python (From Scratch) covers it

How deep it goes
Defines an abstract method and implements tax and tracking-error formulations, without detailing the complete solver workflow.
Examples
Uses tax-minimization and tracking-error-minimization subclasses with explicit rates, holding periods, target weights, and covariance data.
What it assumes
Assumes portfolio holdings, target weights, optimization variables, and portfolio metadata; supplies the objective interface itself.
What you can do after
Apply it via subclasses that generate tax-aware or target-tracking objectives for portfolio optimization.
How it connects
Connects objective functions with portfolio optimization, rebalancing, tax lots, target weights, covariance matrices, and constraints.
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