syncing StrataSearch's portfolio with brokerage portfolio

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syncing StrataSearch's portfolio with brokerage portfolio

Postby timr411 » Fri Sep 12, 2014 12:01 pm

When Run Signal is executed, I get a list of BUY, SELL and/or HOLD signals, and an indication of which ones are actually in a given portfolio for the size specified (e.g., PF = 5). I understand that the positions offered as BUY or SELL but not designated as PF=5 are listed for the user to review, in case after further due diligence he decides to buy/sell a stock that was a candidate but wasn't designated as PF=5. In this situation, his actual brokerage portfolio will then be out-of-sync with his StrataSearch portfolio. How does one reconcile this? For example, if he decides to buy, say, AAPL instead of one designated as PF=5, StrataSearch will not be able to tell him when to sell AAPL because it doesn't know he owns it.

Here's another situation: Let's say LSI is in my StrataSearch portfolio and I actually hold that position in my brokerage account. Earlier this year, it was acquired by AVGO for cash. In StrataSearch, it was simply "replaced" with WIN the next day. So, to keep my StrataSearch portfolio synced with my brokerage portfolio, do I need to take the cash obtained from the LSI acquisition and immediately buy WIN to keep both portfolios synced?

I see that the Daily Signals Listing has a "Portfolio Manager" tab, where positions can be bought, sold, and tracked. So here's where I could enter what is actually bought/sold in my brokerage portfolio, but I don't think StrataSearch uses this portfolio when determining what positions are held while running Run Signal, right?
timr411
 
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Re: syncing StrataSearch's portfolio with brokerage portfoli

Postby Overload » Fri Sep 12, 2014 5:42 pm

There are many times when the portfolio-selected trades from the Daily Signals Listing may become out-of-sync from what is actually traded. Even if you're not specifically using Limit Order entries, you might use in-range Limit Orders just to protect yourself against poor prices on stocks with small liquidity. And there will be times when those Limits aren't hit, and you didn't enter a trade that the Daily Signals Listing says that you did.

The best solution to this problem is to use the PF (portfolio-based) trades as a suggestion, but not as a requirement. To follow a system properly, you should be entering the first positions available on any given day, regardless of what the PF column says. As you somewhat described, the problem is actually in the prices (mergers, acquisitions, de-listings, stock splits, etc.) It would be very difficult to have the Daily Signals reflect each of these scenarios, and produce the exact PF trades that you might get in real trading.

Instead, to follow the system properly, you should be entering the first available buy signals as they become available, regardless of whether they are displayed as PF or not. Once you have bought those stocks, even if they are not PF, you can still follow them through to their sell dates in the Daily Signals Listing. They won't be listed as PF trades, but they will still be there, and their sell signals will still trigger. That is why the Daily Signals Listing displays all trades instead of just the PF trades. It is expected that you will not have a precise synchronization with the PF trades.

In the rare situations where an acquisition or some other price transformation takes place, it will be a case-by-case whether the system itself can create a valid sell signal. In some cases, the price history may have changed so drastically that the original buy signal is no longer even valid. Users/traders will need to make their own choices on how to handle these situations. But this is the case with any trading system, and not just StrataSearch.

If you want to track your live trades, you should enter them manually into the Portfolio Manager, which is a tab on the Daily Signals Listing. That is the only way for StrataSearch to know what stocks you actually bought, and what the exact buy and sell prices actually were. There is no direct link with the Signals being run, but it is where you can track and compare live trading versus what happened in the PF columns of the Daily Signals.

Hopefully that all makes sense.

Pete
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Re: syncing StrataSearch's portfolio with brokerage portfoli

Postby timr411 » Sat Sep 13, 2014 1:34 pm

Great reply, Pete, thanks.
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