Jim Dean Sage   Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA  User Profile | Thanks for explanation. Makes sense. The DSS ordering is apparently confined to limiting signals to within the L/S counts balance. If you activate the L/S limits, I would presume that there might still be some cases where inadequate funds call for the native PS rules to kick in. Although I think DSS is a step in the right direction, I've never heard of anyone (other than Nirvana) who tries to "balance" L/S exposure by number of positions in each direction. Afaik, normal portfolio-management directional balancing of stocks is done either by dollars committed to the various positions (for long-hold investors), or by the actual dollars-at-risk = price vs closest stop, times shares (for short-hold traders). If course with options there are a lot of other ways. I hope that eventually Nirvana will provide risk-dollars-based balancing. It's the only approach that really makes sense to me. [Edited by Jim Dean on 2/6/2013 4:16 PM] | |
