Friday, October 1, 2010

It wasn't my fault


I don't like losing.  I've said this before, but a few losses lately have really upset me.

And now I've discovered that the 'errors' are not my direct fault.  Let me explain:  As clients come and go in my Managed accounts, I've done dozens of re-proportions to involve clients in trades at the risk levels they've indicated, and to share the returns accordingly.  The last two re-proportioning exercises have been very complex, with multiple trades open, some with unrealised losses, and some with unrealised profits, and where some clients are adding funds, and some are de-allocating from their balance.

I've discovered that the action of re-proportioning has a few flaws, and in these last two events, we ALL lost money un-necessarily.  Staff at OANDA are looking into the matter, but initially they say I changed a setting (which I didn't).

Anyway, from now on, I'm only going to re-proportion when all trades are closed.  Sometimes this may be weeks or months apart.  Expect this please, and don't add money that you will need in the short-term.