For the ISA and Invest accounts it would be useful to have a section called “Strategy” or something similar in the Portfolio tab. Currently there’s pies but it’s restricting. There are work-arounds that you can do to use pies as strategies feature that I have in mind but going through these hoops is inconvenient.
Idea of strategies is very simple. You can create a strategy with name and allocate certain amount of funds to it. What the user does with the funds is completely up to them. The app keeps track of history for each strategy which makes it easy to measure the success of each strategy. You can “deposit” into a strategy and “withdraw” from a strategy but withdraw would require strategy to have some free funds in it.
So this is not a feature for automated investment as the name might suggest but it is a feature for making it easy for users to manage their funds across different strategies that they use and keeping track of each strategy’s success. So “Strategy” might not be the best name for it but you guys can decide on the name.
Hi bunderbah and welcome.
I very very much doubt this would happy but personally I’d like a system to differentiate between different “strategies” but would perhaps suggest a different way to do it. I have different strategies in part based on the reason for a particular buy. Thus something could be a long term investment or a trade… I would not allocate funds necessarily to a particular strategy but each order would be for a particular strategy. Thus I am buying more nvda for my core (long term) or buying xyz for a medium term trade.
Thus what I would like to see if for a particular company the amount (shares/value/profit) I’ve got for each strategy and when I do a buy I simply say what strategy its for. This is relatively simple to implement and doesn’t involve anything to do with cash/free funds accounting or management. Simple for each company there is a value pair for each strategy used for that company consisting of quantity & cost. Personally I’d like four values for each strategy/company combination - quantity, current avg price, money in and money out. If I buy 1000 shares at £1000 and sell them for £1200 and then buy another 1000 shares at £1000 (if it dipped again) I’d like to see that I’ve got 1000 shares, current avg cost/share and I’ve put £2000 in and taken £1200 out. I can then see that although the current shares cost me £1/share (avg cost/share of current holding) the reality is that I have put a net £800 in (£2000 in - £1200 out) and have £1000 of shares so my all time P&L is £200 (even if my current holding is saying its flat - I bought the current shares for £1/share and current price is £1/share).
There are lots of ways that this could be enhanced but just a simple thing of keeping track of a few data values per company/strategy combination and being able to say what strategy each buy and sell is for would give the basis for some useful insight and tools
The values you want for strategy/company combination is similar to what I want for the strategy feature that I am suggesting. Except, a strategy will have multiple instruments in it. So I want current value of the portfolio within that strategy, together with the money in and money out. Then the return of the whole strategy would be
current value + money out - money in
Trading212 already shows the profit/loss for each company in the Investments and Pies tabs. Strategy tab would also show it.
Being able to easily manage funds across different strategies is really important for risk management. That’s why I want the deposit/withdraw features for strategies. Otherwise, you would have to do the management manually.
Let’s say you use strategies that allow free funds as part of the portfolio (which is viable as you get interest on it) and you have 2 such strategies. When you deposit £1000 in your ISA, you want to allocate 300 of it to strategy A and 700 of it strategy B. Strategy A says invest 250 and keep 50 as free funds, Strategy B says invest 400 and keep 300 as free funds. So now you have 350 free funs in your ISA but you don’t know how much is allocated to Strat A and how much is allocated to Strat B unless you were keeping track of it using a 3rd party software.
With the feature I am suggesting you would do the allocation of cash into these strategies in the beginning by moving the funds into the strategy when you deposited the 1000. It just makes it easy to manage your funds across different strategies.
Also selecting a strategy every time you buy would be very inconvenient and error prone.
Second also, implementation of this feature would be very simple as there is no complicated logic that needs to be implemented.