Wednesday, November 24, 2010

New Covestor Feature

Now that my brokerage account is synced up to Covestor, you can view all the trades I've made and see how I'm performing vs the S&P. A couple warnings about interpreting the results shown on Covestor:
  • Covestor does not include cash holdings, so it takes my positions and assumes that I'm 100% invested. To view my cash allocation, you have to go to the site directly and select the option to include cash -- I think. I'll need to see how this works myself. I'm rarely 100% invested in anything. However, for this kind of scalping strategy, I do take rather large positions.
  • All information is delayed by one day, so there is no way to see when I'm entering or exiting a position, although the next day you can see what I bought and what price I got. The day after that you can see the price at which I sold it.
It's important to note that I cannot manipulate the results shown on Covestor. That's one of the reasons it's useful for tracking if you want to see how other people are doing with their strategies. All my trades are tracked in Covestor automatically behind the scenes. I don't manage it at all. Their philosophy is that the results should be transparent and honest, and also that if someone has a strategy, they should be willing to put their own money on the line if it's any good.

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