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Bring FM to a new level with calculated investments

Comments, critical feedback, praise, or suggestions for new features.

Postby Djobydjoba » Sat Nov 21, 2015 10:20 am

Hi Mark,

I re-open a topic (with a catchy title) for improvements I would love to see in FM on the subject of calculated investments.

Already discussed here : viewtopic.php?f=7&t=2936

But I think the request needs more visibility. I can't imagine be the only one who sees great value and great potential in this.

In fact there is two parts in this request :

1) The minor one : An automatic update of the new prices for an investment created with the "Create Investment from Investments" command.
I would love that. Currently I have 90 investments created with this command (for relative strength) that I have to refresh manually (re-execute the command 90 times / week), and it's very tedious.

2) A more powerful command to create calculated investments.

With the command "Create Investment from Investments" we can create a calculated investment from 2 other investments only. With a more powerful command it would be possible to create an investment from many others investments, for example calculate a custom index from a dozen stock investments. This command could be quite similar to the User-defined Custom Report Fields, with a equation to enter, but at the investment level.

The new prices for the calculated investments would be calculated automatically (with the Retrieve price commands for example) -> we are back to the request #1 here.

The potential of such a command could be very important, and would bring FM to a new level of powerfulness, IMO.

I hope some others FM users will see the value of such an idea and will support it.

PS : really hope to see at least 1) in the next major release :!:

Thanks
Djobydjoba
 
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Postby Mark » Sun Nov 22, 2015 6:10 am

Hi Djobydjoba,

I understand both of your ideas, and they make good sense. We will consider these. Thanks for the feedback/ideas.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby Djobydjoba » Sun May 08, 2016 5:47 am

Be able to generate charts of relative strength with the Create Investments from Investments command (investmentA divided by investmentB) is totally awesome in Fund Manager. In fact, I don't know any other software affordable for a personal investor that offers this. Trading softwares generally offer the relative strenght as an indicator at the bottom of the charts, but it's just an indicator, not a chart. Relative strength charts in Fund Manager allow to do technical analysis on them, supports, resistances and so on.. like a classical chart, and, this is a secret, TA in relative strength graphs works !! I think the Metastock software (for example) offers this too, but it's much, much, much more expensive and a dedicated technical analysis software.

There is no limit to the imagination when comparing assets. Here's a few examples of relative strenght charts :

1) XAG / XAU (i.e. silver / gold) :
XAGXAU.png
XAGXAU.png (23.1 KiB) Viewed 6099 times

A reversal signal in the relative strenght after a contact on a multi-years support. Prefer now to buy XAG than XAU !


2) XAU / S&P 500
XAUS&P500.png
XAUS&P500.png (20.38 KiB) Viewed 6099 times

A reversal in construction. Risk off to come on the markets ?


3) S&P Consumer Discretionnary / S&P Consumer Staples
DiscretStaples.png
DiscretStaples.png (20.71 KiB) Viewed 6099 times

When the relative strenght is breaking supports, be careful, a correction on the market could follow.

4) Russell 2000 / S&P 500
Image

When the stock market goes up, invest in the small caps world when this thing goes up !


And so on... I have a hundred of relative strenght charts, to compare index countries versus the S&P 500 (the reference I like to use), the emerging world versus the developped one, a stock versus its sector, a sector versus the S&P...

Relative strenghts graphs available in Fund Manager is an extremely valuable tool to analyse and select the markets, decipher assets strenghts and for market timing. A tool that very few personal investors know and can use as in Fund Manager.

So, this software is great for this, too.

And, you see me coming, that's why an automatic update of relative strength investments prices in the next version of Fund Manager would be so great ! :)
Djobydjoba
 
Posts: 711
Joined: Tue Mar 09, 2010 9:39 am

Postby Djobydjoba » Sun May 08, 2016 6:58 am

Here's another example of the use of the relative strength in Fund Manager.

In the 20 October 2014, stock markets are really oversold. I'm interested in buying because the Stoxx 600 Europe index is now on a big support (in fact, two supports with the trendline) :

Stoxx600Index.png
Stoxx600Index.png (23.34 KiB) Viewed 6093 times

The question now is what sector is the most interesting to buy. Relative strength graphs can help.

The auto & parts sector catches my attention, because at that moment the relative strength of this sector is really oversold too, and has begun to bounce after a big support level has been reached :

AutoStoxx600RS.png
AutoStoxx600RS.png (23.69 KiB) Viewed 6093 times

So I choose to buy ETF Stoxx 600 Auto & Parts. Bingo ! This sector what one of the top performer of the next rally (driven by European QE)
Djobydjoba
 
Posts: 711
Joined: Tue Mar 09, 2010 9:39 am

Postby Mark » Sun May 08, 2016 9:49 am

Hi Djobydjoba,

Thanks for sharing, I find it interesting to see the different ways Fund Manager gets used. I hear you on the automatic updating of calculated investments feature...
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby Djobydjoba » Fri May 20, 2016 1:30 pm

Hi Mark,

Another thing about calculated investments : the currency of the investments used to create the calculated investment.

For example, I have some investments in USD and some others in EUR, and before I create a calculated investment I sometimes need to change the current default currency (or currency template) to have the investments in the desired currency.

In the "automatic updating of calculated investments" feature, do you think the currency of the investments involved in the calculation could be chosen ?
Djobydjoba
 
Posts: 711
Joined: Tue Mar 09, 2010 9:39 am

Postby Mark » Fri May 20, 2016 5:12 pm

Hi Djobydjoba,

Yes, that would make sense. Currently the updating is done using the current state of the currencies. We'll have to think through all of this before implementing.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby Djobydjoba » Sun Jul 31, 2016 4:18 am

Hello Mark,

I'm sorry to post again. I hope it doesn't bother you too much. If so, don't hesitate to tell me. I'm so excited currently with Fund Manager which allows my savings to take a very good direction. This software is so strong to manage investor's ideas. I'm blown away by the currency templates implementation. The relative strength graphs are so important too in an investor's methodology. When I have ideas or requests (good or not so good) I prefer to write them down here when they are hot. I guess the more feedback the better, and I know ideas will be heard at least. My posts will decrease soon, but maybe this can look too insistent for you at the moment.

I would like to share a view about relative strengths and currencies.

Relative strength between an investment A in a XXX currency and an investment B in a YYY currency.
Do we want to take into account the currency effect, in which case we calculate invA(XXX) / invB(YYY), or not, in which case we calculate invA(XXX) / invB(XXX) (or invA(YYY) / invB(YYY)).

In fact the both are interesting depending on the situation.

I've noticed that relative strength graph with no currency effect is cleaner, better to do technical analysis on. But an investor can be interested to add the currency effect in the RS graph. In fact, and that's the idea, it would be great to go back and forth between "currency effect included" (= "no adjusted by exchange rate") and "no currency effect" (= "adjusted by exchange rate") in a calculated (i.e. relative strength) investment without the need to create two different calculated investments.
Djobydjoba
 
Posts: 711
Joined: Tue Mar 09, 2010 9:39 am

Postby Mark » Mon Aug 01, 2016 7:14 am

HI Djobydjoba,

Please feel free to post as many ideas as you want, they are helpful to improve the product. We greatly appreciate feedback/ideas.

I can see this being something where you define whether or not currency adjustment is on when the calculation is performed. Maybe it could be remembered on a per-calculation basis, so you could define some with and some without currency adjustment. That seems it would give the greatest flexibility.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Posts: 11252
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Postby Djobydjoba » Mon Aug 01, 2016 8:41 am

Hi Mark,

I don't know if my last post was so clear. To be more precise I was thinking (dreaming...) of the implementation of the "automatic updating of calculated investments". My dream would be :

1) We can create a calculated investment. For example : investA in currency XXX / investB in currency YYY. OK, we can do this already :) .

2) The new prices for the calculated investment are updated automatically (or on demand, via Retrieve prices for example) without the need to recreate the calculated investment -> It is the main request for this topic.

3) A new "dream" would be : on this calculated investment, for which the prices are automagically updated, we could dynamically change the "adjusted by exchange rate" state, and maybe the currency template too, and the computations of prices would be redone live. That means that the currency settings would not be fixed at the moment of the creation of the calculated investment, but could be change on demand after the creation, like any standard (non calculated) investment.
Djobydjoba
 
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Postby Mark » Mon Aug 01, 2016 9:10 am

Hi Djobydjoba,

Thanks for the clarification, I understand. That is starting to add a good amount of complexity for #3. We may be able to improve the situation with some intermediate level solution. We can give this some thought.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby Djobydjoba » Mon Aug 01, 2016 10:57 am

Extra thought : the relative strength is the same whatever the currency template (because InvestA(EUR) / InvestB(EUR) = InvestA(USD) / InvestB(USD). So, at least for relative strength, the currency template is not a parameter to consider in the idea #3. However, the "adjusted by exchange rate" state would be interesting, because we could see the relative strength with or without the currency effect without having to create a second calculated investment.

Calculated investments open doors beyond the unique relative strength (custom indexes, etc..). There is a lot to imagine. But I think the relative strength in itself is so useful for an advanced investor that it could be brought more to light in Fund Manager. I think people don't probably realize that the Create investments from investments command leads to such a tool to analyze markets. They even probably don't know well what is the relative strength and how to use it, and the benefit of it.
Djobydjoba
 
Posts: 711
Joined: Tue Mar 09, 2010 9:39 am

Postby Djobydjoba » Mon Aug 01, 2016 1:05 pm

A practical example of relative strength use with exchange rate.

We want to compare the strength of the European stock market versus the US stock market.
For the European stock market we will use the Stoxx 600 Europe index (it's an EUR investment)
For the US stock market we will use the S&P500 index (it's an USD investment)

Relative strength : Stoxx 600 Europe / S&P500

When "adjusted by exchange rate" is on, we compare the two stock markets without the exchange rate effect (the two markets have the same currency, so we can compare the "intrinsic" strengths). On the other hand, when "adjusted by exchange rate" is off we compare the two stocks markets included the exchange rate effect (the "overall" strengths, that the overseas investor must take care of too).

So, both relative strengths (with and without exchange rate effect) are interesting to analyze when comparing with this tool two investments (indexes, sectors, stocks...) in different currencies. Reason for the request #3 above (that is, to make it simple, the possibility to toggle on and off the exchange rate adjustment for a dynamic recalculation of the relative strength investment).

I probably should have start with this example, my request would have been easier to follow.
Last edited by Djobydjoba on Mon Aug 01, 2016 2:32 pm, edited 1 time in total.
Djobydjoba
 
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Joined: Tue Mar 09, 2010 9:39 am

Postby Mark » Mon Aug 01, 2016 2:31 pm

Hi Djobydjoba,

Thanks, I do believe I understand your request.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11252
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby Djobydjoba » Sat Sep 17, 2016 5:33 am

Hi Mark,

With more than 100 calculated investments I manually refresh each week (you know, a candle is burning for the next major update :mrgreen: ), would it be possible in a next (minor) update to do a minor change to the Create Investments from Investments window : the manual refreshing would be twice as fast if the last values selected in the six dropdown lists could be pre-selected when the command is recalled in a same Fund Manager session.

Currently only the two dropdown lists in the "Destination investment" works that way, which is good. For relative strength, the denominator ("source investment 2" values) is often the same (S&P 500 for example), so if the last values used could be pre-selected that would save a lot of clicks. An for "Source Investment 1" this would be faster too to navigate on a large dropdown list that we have to handle sequentially.

Thanks.
Djobydjoba
 
Posts: 711
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