Optimal Execution Strategy for Portfolio Rebalancing

Alex is a portfolio manager overseeing a fund that regularly rebalances its portfolio to maintain a target allocation across various asset classes. Recently, he identified that one of the equity positions in his portfolio has significantly outperformed relative to its benchmark, causing the allocation to exceed the target range. To manage the execution of trades for this overweight position, Alex is considering various execution strategies.

Which of the following execution strategies would be most effective for reducing transaction costs while rebalancing the portfolio without adversely affecting the market?