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OmniVest Optimized Allocations
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JimDean
Posted 3/27/2014 7:07 AM (#5716)
Subject: OmniVest Optimized Allocations



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This thread is focused on the general purpose of OVest - that of keeping you as fully vested as possible, using strategies that fit your goals, and the investment rules you apply. This thread is intended for "big picture" comments regarding how OVest works - please start different threads if you want to focus on specific details. Thanks.

Thread moved by JimDean on 8/4/2014 8:53 AM from Markets & Methods > OmniVest, Money Mgmt & Risk Control > OmniVest Optimized Allocations

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JimDean
Posted 3/27/2014 7:14 AM (#5717 - in reply to #5716)
Subject: OmniVest Optimized Allocations



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Posts: 3925
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Recently someone asked:
I have looked around in the forums and read as much as I can (time permitting) about V2 and migration and I seem to recall that one of the issues with the practical use of OV is being able to use all the trades generated within an account. I'm guessing that if this is true then account size($) and account settings would be significant contributors to difficulties getting fully invested in a real trading scenario.

My questions are:
1. Does this new V2 simulated performance mean that the gap between simulated performance and actual practical trading performance, has widened?
2. Is it possible to utilise all trades generated? Under what conditions/settings would that be possible?

OVest is designed with the primary goal of making your money work for you as continuously as possible. Many of its general settings as well as individual allocation factors are designed for that purpose.

You are in control of the factors that determine what percent of all the possible trades are taken. It depends largely on the characteristics and number of strategies you select, and on your account settings. The historical simulation applies those settings accurately.

If your selected strat's all tend to fire at the same time, then it's more likely that there will be occasions when you have inadequate funds to take full advantage of them all. That's part of the simulation too. In that case, V2 has added options for selecting between the trade opportunities that are competing for your avail buying power - based on volume or price etc rather than alphabetic - and additional options are planned for greater "intelligence" to be applied in that process. So, yes, V2 is getting better in that regard, re both of your questions.

Also, Ed has said that near term plans include additional "smarts" on the TP side to help unclog the bottleneck that can occur at the Open. Various alternatives are being considered such as repeated attempts for entries, if closing prior trades are delayed, as well as a definite inclusion of Limit Order options. These features also help address your two concerns.

If "taking all the signals" is truly important to you, then the key to that is in your own part of the process. Your choices of strategies and portfolios and account settings are the factors that affect this. Historic simulation uses the same factors. Of course, simulation never is a predictor - rather, it's a comparator. If you have two simulations and one has significantly better stats than the other (however you consider "better"), then the future performance of that one is likely to continue to be better than the poorer one. But the absolute numbers can and will change. That's the nature of all backtesting. And I should also add that the test period you use, and any filtering conditions you assign, are big factors too.

Summary: OVest is designed to optimize the use of your money, but you are in control of how it goes about that. V2 most definitely gives you greater control.




Thread moved by JimDean on 8/4/2014 8:53 AM from Markets & Methods > OmniVest, Money Mgmt & Risk Control > OmniVest Optimized Allocations

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