Several systems at one account

[SergeyKlyuev]

Hello,
Could you help, how can I organize accounting if I trade several systems at one brokerage account?
Each system has it's portion of money for some period of time.
I think of having cash-investment #1 for broker-portofolio and cash-investments for each system (sub-portfolios in broker-portofolio). cash-investment #1 will get money and then transfer it to sub-cash in my proportion.
After some period of time I can rebalance proporions between systems by transfering cash from one sub-portoflio to other.
Am I right?

If every system have fixed-percenage of entire equity on every-day-basis I can use just one cash-investment #1. Then I can calculate the next trade for each system as:
equity * portion of equity for system[n](%) * risk per one trade(%).
Am I right?

Thank you,
Sergey

[Mark]

Hi Sergey,

You can have as many sub-portfolios with as much hierarchy as you want. You could do something like this:

Code: Select all

- Brokerage Account
  - System 1
  - System 2
  - System 3

Each sub-portfolio could have it's own default cash, and you can transfer cash (or securities) between sub-portfolios. When you graph/report you can select any level in the sub-portfolio hierarchy. Whatever you select includes everything beneath it, so if you were to report on "Brokerage Account" from the example above, it includes everything in all your included System sub-portfolios.

I'm not sure I follow exactly what you're doing, but if you want to be able to report on the performance of each system separately, and have the effects of cash included, you would want to divide the cash up appropriately into each of the system sub-portfolios.

I can calculate the next trade for each system as:
equity * portion of equity for system[n](%) * risk per one trade(%).

I didn't follow this equation, but hopefully the explanation on how to use sub-portfolios above will help you to determine how best to utilize them for your needs.