This strategy was started to copy what I do in my HSA. See the similarity with my HSA results from Schwab below.
There are some minor differences, but the idea was the same. In a way, this strategy was always a Trades-Own-System strategy, but there was no way for Collective2 to verify that. Due to this, I have opened another Interactive Brokers Roth IRA to connect to Collective2 and set up my algorithms to automatically submit the orders to IBKR (though I still have to manually enter them at Schwab). All that to say, soon you will see a TOS (Trades-Own-System) badge coming to Easiest. This also means that when I place a stop order at IB, you won’t see it as a subscriber until it gets triggered and will appear as a market order. The only downside I see is that you won’t see the stops. But you can always set your own stops as a secondary backup. I wouldn’t set them too close. Generally, I would keep them at about 10% for an unleveraged position and 30% for something with 3X leverage or similar. I know, I know. Those are huge, but if you want, you can use tighter stops. Price stops are not, in general, the main way I exit positions. My algorithms usually trigger before my stops are hit on any position. I know this may seem crazy, but think of it this way: If you and your neighbor bought homes at the same time for $500,000 each, but your neighbor a few months later suddenly sold for $250,000, would you want that to mean you automatically sell your house for $250,000? I wouldn’t! I always place stops, but my aim is to rarely, if ever, have them trigger.
Recent Blog Post by Me on Drawdowns
Embrace the Pain – How I Invest
