The Trade Strategy gives users more flexibility when creating a single trade across many accounts. With Trade Strategies you can:
- Rebalance a security to a target percentage across accounts regardless of the model, and even for accounts not associated with a model.
- Sell a security and use the proceeds to buy one or many other securities
- Calculate trades based on a percent of asset class, sector, sleeve or other classifiers.
- Create buys or sells based on percentage, shares or currency
Creating a Trade Strategy
The Trade Strategy page can be accessed from both the Trading screen by selecting the "Add Trade Strategy" icon on the top right corner of the screen, and from the Trading tab on the navigation bar.
Trade Strategy Types
- Rebalance - Buy and Sell to reach a target percentage of a security.
- Buy - Buy additional quantity of a security based on percentage, shares, or currency amount
- Sell - Sell existing holding of a security based on a percentage, shares, or currency amount
- Short/Write - Short additional quantity of a security based on percentage, shares or currency amount or Write options to perform Covered Calls or Cash Secured Puts
- Cover - Cover existing short holding of a security based on a percentage, shares or currency amount
- Portfolio MV - Calculated as a percentage of total account market value
- Security MV - Calculated as a percentage of existing security market value
- Sleeve Allocation - Calculation based on sleeve model percentage for models associated with related portfolio. No trades will be created for accounts that do not have a model assigned, containing the associated sleeve
- Asset Class MV - Calculated as a percentage of related asset class in each portfolio
- Security Type MV - Calculated as a percentage of related security type in each portfolio
- Security Class 1 MV - Calculated as a percentage of related security class 1 in each portfolio
- Security Class 2 MV - Calculated as a percentage of related security class 2 in each portfolio
- Shares - Buy, Sell, Cover or Short specific number of shares
- Currency - Buy, Sell, Cover or Short specific dollar amount
Sell and Replace
When users select the Sell transaction type, they have the option to use all or some of the proceeds generated from the sale to purchase one or more replacement securities. To add one or more replacement securities select the 'Add Securities' text located under Replacement Securities.
Once a replacement security has been added you must enter a value from 0 to 100 in the Percent box. This is the percentage of proceeds to use to purchase the replacement security. Remaining percent will be allocated to Cash as indicated in the top right of the Replacement Securities pop-out.
In this example the user is selling half of an account's positions in AAPL, and is using the proceeds to purchase an equal amount of two additional securities, GOOG and MSFT. Because 100% of the proceeds will be used the Cash display shows 0.0% remaining.
Adding Accounts or Groups
Once the Trade Strategy details have been entered, users will select which accounts or groups to run the Trade Strategy on.
- Add By Group - Users can select an existing group of accounts
- Add By Filter - Users can select accounts from an existing filter on the Account Listing page
- Add Accounts - Users can select from a list of existing accounts
Multiple items (Accts, Filters, or Groups) can be added to the same trade strategy. The system will automatically identify any duplicate accounts added to the strategy during trade creation. Ex: In the event an Account is contained within a Group and a Filter that has been added to the Trade Strategy.
Adding All Accounts
During the Trade Strategy redesign in v7.16.1 we have removed the 'All Accounts' checkbox option. To apply a Trade Strategy to all Accounts in the system (ex: during a firm wide position liquidation) utilize the Add Filter button, then select the system default 'All Accounts' filter.
Trade Strategy Review Modal
The new Trade Strategy review modal will be displayed after the user enters the trade strategy details, adds accounts, groups, or filters and clicks the Run Trade Strategy button.
- Trade Strategy Summary - A count of all selected accounts as well any account(s) set to the Manual balance type, or marked with the Closed or Pledged account status