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Smart Portfolio - scaling question/feature request?

Hey guys - I’m new to smart portfolios and I’m trying to figure out if I should try them or just stick to the regular auto trade strategy selection. The one advantage I see with smart portfolios is the daily rate/switch option, but it doesn’t look like it may smart scale yet?

If you watch the video that Matthew Klein posted:

  1. There is no way to scale strategies individually within a smart portfolio, they all have equal weights. Yes there is a way to scale each trade but that doesn’t translate to custom scaling.

  2. What I’m looking for is a way to scale the strategies the smart portfolio picks automatically to my broker account balance. Let’s say my balance is 250K, and the smart portfolio picks up 3 strategies A, B, C with model account sizes 100K, 50K and 25K.

What I need smart portfolios to do is smart scale that with equal weights to “fill” my entire brokerage account balance. Thus it should scale trades within A to 1x, B to 2x and C to 2x automatically

We need a way to specify the brokerage account balance percentage that we want a smart portfolio to “smart” control automatically (obviously most people would want to max this out).

Feedback welcome thanks

Hi, Mandar -

Your suggestion is a good one. SmartPortfolios are pretty early in development, so we’re just trying to make sure we get the basics done right. But, yes, I can see why some kind of automated scaling-equalization would be interesting in the future.

One of the reasons I didn’t pursue this in these early days of SmartPortfolios is that there are inherent challenges in implementing it. Keep in mind that scaling must be done in whole-number increments to prevent tracking errors from creeping in to your AutoTrading (to understand why, just recall that you can’t trade 0.5 of a futures contract).

This means that scaling could become large very quickly for those “small” strategies with relatively smaller Model Accounts. So we’d need to figure out a way to make sure people fully understand the implications of turning on a feature like this. (Thus the main challenge is user education and risk mitigation.)

Anyway, thanks for the suggestion. It’s something I’ve been thinking about as well.

Thank you - I look forward to improvements. Can you also please publish a timeline of upcoming smart portfolio features? A milestone roadmap would be greatly appreciated and will increase usage. Thanks!

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