I have an idea that could take Trading 212 pies to the next level! It’s about enhancing the current Pies functionality and transforming it into a more powerful, user-friendly, and accessible alternative for the eToro Portfolios.
Here are my Ideas :
Smart Diversification:
Introduce algorithms that automatically recommend the optimal allocation within a Pie based on risk tolerance, sector preferences, and historical performance. This will make it easier for users to build well-balanced portfolios.
Community-Driven Pies Search Functionality:
I propose creating a search engine that lets users find Pies tailored to their profile, sorted by risk, sector, and performance, similar to eToro’s classifications for portfolios but than More advanced.
Advanced Analytics:
Provide users with in-depth performance analytics, such as risk-return ratios, volatility, and correlations, enabling investors to make more informed decisions.
Real-Time Updates:
Ensure that Pies receive automatic updates when ie Owners change their strategies or performance, keeping users informed in real time.
Educational Integration:
Combine Pies with educational content within Trading 212. This will help users learn about the underlying strategies and financial concepts while they invest.
Low Minimum Entry Barrier:
One of the key strengths of Trading 212 Pies is their accessibility. It’s crucial to maintain a low minimum investment amount from today so that anyone can start building their portfolio, no matter their budget.
With these improvements, Trading 212 can not only compete eToro Portfolios but surpass them through innovation and ease of use.
Why would a subscribe for changes/updates not happen? It wouldn’t take much to rebalance either, allow a new pie of the new make up to be funded by the old pie, and select rebalance now, or rebalance on future investment?
It encourages more trading so more profit to 212 in fx fees, and users can choose to follow or not model pie updates?
Particularly useful if the wisdom tree etc pies change the make up.
Getting a notification is the right strategy and a click to update. An automatic update is an abomination.
Say the Dividend Experiment pie with it’s 100’s of thousand copies decides to sell the lot and put the whole fund into a penny stock going into earnings in 5 mins. Everyone loses ■■■■ loads.
I understand your concerns about the risks of automatic updates, but I disagree with your position that this would only be negative. The idea of an automatic rebalancing function actually offers advantages that the current system lacks. If we create a mechanism where rebalancing is not only optional but also automatic and intelligent, we can increase efficiency without users constantly having to worry about manual adjustments.
The scenario you describe, where a fund reallocates into a penny stock, is theoretical. Such risks can be mitigated by implementing safeguards within the automatic updates. Think of limits on how risky the reallocation can be or a quality filter for rebalancing choices. Automatic updates don’t have to be inherently dangerous if they are well-designed.
Additionally, there could be an option to split automatic rebalancing across individual stock or sector categories. Users could, for instance, view real-time changes and decide which categories they want to update automatically and which to manage manually. This keeps control in the hands of the user while making the process more efficient.
For active investors who prefer automated management, the groups proposed in a previous discussion could be introduced. This allows them to select which parts of their portfolio they want to adjust while keeping the rest unchanged. The pies, therefore, remain manual and fully under the user’s control.