The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss is not indicative of future performance or success. There is a substantial risk of loss in trading. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading. Most people who trade lose money.

Smart Portfolio - scaling question/feature request?

C2
#1

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

#2

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.

#3

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!

Back to C2 Platform