OmniVest User Forums
Risk Control Requests (& other Account Settings)
Limit Trade Size using Daily Volume
12 replies, 1278 viewings
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OmniVest User Forums
Risk Control Requests (& other Account Settings)
Limit Trade Size using Daily Volume
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Last Activity 5/17/2016 11:06 AM 12 replies, 1278 viewings |
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Barry Cohen Icon     Posts: 1844 Joined: 10/11/2012  User Profile |
Reported by Bogle | ||
| Larrie Cable Member Posts: 36 Joined: 10/11/2012 Location: Bedford, NH User Profile |
[Edited by Larrie Cable on 10/19/2012 1:41 PM] | ||
| Juan Regular Posts: 74 Joined: 10/11/2012 Location: Round Rock, Tx User Profile |
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| Jim Dean Elite Posts: 1059 Joined: 10/11/2012 Location: L'ville, GA User Profile |
Furthermore and very importantly - I believe that the percentage should also take into account any EXISTING shares on a given symbol, when a new signal tries to add to them on that symbol. Same reasons as above apply. I don't see any benefit in having two or three separate percent inputs for this - that would confuse matters. Proper money mgmt should look at the whole account, and integrate new sigs with existing positions, for this purpose. This is REALLY important. Thanks for posting about it. [Edited by Jim Dean on 10/19/2012 2:25 PM] | ||
| John W Elite Posts: 654 Joined: 10/11/2012 Location: Sydney, NSW, Australia User Profile |
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| Larrie Cable Member Posts: 36 Joined: 10/11/2012 Location: Bedford, NH User Profile |
The issue I was trying to identify is that with a number of strategies often selecting the same equity to purchase, there is the potential (actually happening during current simulations/trade recommendations) that regardless of account balance, three, four and (sometimes) more strategies, each with a trade allocation of say 10% for arguments sake, are recommended for purchase. Should we (or the trade processor) follow these recommendations without further risk control/restrictions we could find ourselves with 30%, 40% or 50% or our account balance tied up in a single equity.... Not quite the diversification we are attempting to create... even for the risk-takers. Jim's note on ensuring the risk control include both recommended shares and existing positions is critical for effective risk management. [Edited by Larrie Cable on 10/19/2012 9:05 PM] | ||
| Ed Downs Elite Posts: 645 Joined: 2/7/2007 Location: Austin, Texas User Profile |
a) There will be a setting in Account Settings that says, "Maximum of X trades per symbol" to keep it from overallocating in any given symbol. This opens up buying power for other trades, and the simulation will reflect the long-term effect of this. b) We have roughly 100 Strategies in OmniVest now. The list will be expanded and the types of Strategies as well. My goal is to get to around 300 by the end of the year. And there will be other kinds of trading, such as in options. So the likelihood of 2+ trades on the same symbol will be greatly reduced. | ||
| Bob123 Veteran Posts: 121 Joined: 10/11/2012 Location: North Andover, MA User Profile |
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| Ed Downs Elite Posts: 645 Joined: 2/7/2007 Location: Austin, Texas User Profile |
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| Lain Regular Posts: 77 Joined: 10/11/2012 User Profile |
Originally written by 210921 on 10/25/2012 4:08 PM IMHO there are SO MANY trades going on in so many different symbols, etc ... it's probably just a "blip" one way or t'other on the issue of partial trades when the limit is set. I'd FAR rather see the programming time spent to permit various strategies to SCALE IN AND OUT of trades on a given symbol. But I'm sure stuff like this will come eventually ... and that it's premature now. From this thread: http://www.omnitrader.com/currentclients/omnivestforum/thread-view.asp?threadid=3949&posts=9 Hi Jim, Completely agree with you that there are much more important things to be done way before partial trades which is why I said add to a future enchancement. But it's probably important to have it sometime in the future because as your account grows, it will knock out more and more trades reducing the amount you are invested. And one of the purposes of OmniVest is to have a good portion of your account invested at all times, so your money is continually working for you. You can see what happens from the example below: No Volume Limit Account grows to +$900 million and a good amount of your account is invested at all times. 0.1% Volume Limit Account only grows to +$20 million and you are less and less invested by the end. These are using HUGE account numbers and probably not realistic for a person to actually reach these levels. Which is why it's not important right now. But WHEN OmniVest has all it's features and strategies added and ends up being able to produce returns like this, it would be something that's needed so your accounts don't stall. This also goes along with ranking stratgies and adding strategies as you start maxing out your trades. Lain [Edited by Lain on 10/25/2012 5:26 PM]  Attached file : NoVolLimit.jpg (120KB - 411 downloads) Attached file : DefaultVolLimit.jpg (122KB - 436 downloads) | ||
| Fred Gordon Legend Posts: 481 Joined: 10/11/2012 Location: Fayetteville, Ga User Profile |
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| Lain Regular Posts: 77 Joined: 10/11/2012 User Profile |
I did some searching online for what would be a good setting but couldn't find too much. I did find one page that mentioned both 0.1% and 0.2%. So I'm thinking that's probably a good starting point. Lain | ||
| Fred Gordon Legend Posts: 481 Joined: 10/11/2012 Location: Fayetteville, Ga User Profile |
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