Portfolio Automation

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The TurboTrader Portfolio isn't just a container for your Holdings and a way to break down your investment performance. It's also the cornerstone of the Automated Portfolio, the ultimate combination of Live Searches and Paper Trading.

By feeding your buying criteria through some customisable rules to determine a good entry point and investment, the Automated Portfolio can take your own individual trading style and apply it to the entire market, in real-time. The Automated Portfolio never sleeps, never goes to lunch, and never takes its eye off the market.

Contents

What is the Automated Portfolio

All the features of TurboTrader (Live Searches, WatchLists, News Filters, etc) still don't achieve what a lot of people want - a way to have their own personal trading style and rules expressed without emotions, and without tiring. A human will miss things, make mistakes, grow tired or get sick, and when that happens you can miss opportunities to make money.

It is for this reason TurboTrader began development on the Automated Portfolio.

The Automated Portfolio is a service you can select as part of your TurboTrader subscription, which allows you to enable one or more of your Paper Trading Portfolios for automation. The TurboTrader Portfolio will then apply the settings you've selected to live market data, place orders into our Paper Trading simulation, and manage the resulting holdings all the way through to sale. It's the most powerful tool in the TurboTrader suite by far.

The Like and Keep Lists

While the Automated Portfolio utilises both the Like List and the Keep List as part of its processing, they are considered default parts of the TurboTrader Portfolio suite.

They do not require an Automation Slot to function, and you can have as many as you wish.

How does it work

A chart showing the lifecycle of an Asset through the Automated Portfolio

An Asset goes through three main phases in the Automated Portfolio life cycle:

  1. An Asset that has met your initial criteria starts off as a Potential Buy.
  2. Once an Asset has been purchased, it becomes a Holding.
  3. Finally, when the criteria for sale have been met, it becomes a Sale

Potential Buys

There are many steps and filters that an Asset must pass through before an order will be placed on the market.

  1. A stock must first come up on your Like List, by meeting both your Like Criteria and the minimum threshold for the Like Score.
  2. It must meet your Entry Rules, which determine the minimum and maximum price ranges and share amounts that you are willing to invest in.
  3. Your Price Rules must select an ideal entry price for the Automated Portfolio to target.
  4. A Buying Strategy must then select the Asset for purchase, by comparing all the other Assets available and selecting the best based on your Like Score and available funds.

Once these filters have been passed, an Order will be placed on the market according to your Buying Tactics.

Note: If at any point, an Asset no longer meets any of the above rules, the Order will be immediately pulled from the market. The Automated Portfolio is constantly evaluating these rules as the market moves, even after it's placed an Order.

Holdings

Once an Order is filled, it transitions to the Holding stage and appears on your Keep List.

From here, there are two parallel tasks that will be watching this Asset:

  1. Your Holding Strategies will be monitoring the performance of the investment over time (via the Keep Score), deciding whether to continue holding, to sell out, or (optionally) to transition to a more long-term strategy.
  2. Your [Exit Rule]]s will determine both your Stop Loss prices and any Profit Targets you have set.

Selling

The results of the holding phase will be passed to your Selling Strategies, which will determine if and where in the market to place an order.

Some of the conditions that can place an Order are:

  1. If you have a Profit Target rule in effect, an Ask Order will be placed at your target price.
  2. If your Holding Strategy decides to pull out because your Keep Score has dropped below the threshold, or because the maximum investment time has been reached, an At Market Order will be placed.
  3. If a Stop Loss rule (or other, more advanced sell criteria) has been met, an At Market Order will be placed.

Once a sell target has been determined, an Order will be placed on the market according to your Selling Tactics.

Turning on Automation

To enable the Automated Portfolio, first you need to have a free Automation Slot.

Automation Slots are purchased on a monthly basis as part of your TurboTrader subscription. Each slot you purchase allows you to switch one Portfolio to Automated mode. By switching a Portfolio back to merely Monitored mode, you can enable a different Portfolio for automation - this is not a permanent setting.

When you have a free slot, select the Portfolio you wish to enable, switch to the Manage area, and then select Edit. Look to the Automated Trading Status, and change it to Automated. Click Apply/Save, and you're done - the TurboTrader Portfolio will now begin placing Paper Trading Orders based on your rules.

Note: You will be notified if you have any free slots on your Trading Summary page.

See Also: Portfolio Settings gives details on how to configure your automation rules.

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