Currently there is a mechanism in place that allows sold stocks to be re-bought. The results are reported as a buy/sell difference. I think this is a great feature but it only works if the broker's fees are set to zero. Otherwise the fees cause a significant drag on the system performance. The drag is caused by many trades with very low volume (down to 1 share).

The problem is magnified when trying to rebalance a port while rejecting small buy/sell differences. The rebalancing algorithm is not equipped to handle this very well.

I would like to see an important refinement made as follows:

The user should be able to set a threshold value. If the buy/sell difference is less than the specified threshold then the stock should be re-bought in its original quantity and not register as a trade. Therefore no commissions, no slippage for trades of trivial value.

For example, I may want to ignore buy/sell difference if the $volume is less than say $500, thus eliminating trades that would generate commission but unlikely to provide a profit.
Results: Total score: 50, # of Votes: 15, Average: 3.3
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Requested by: InspectorSector
On date: 05/31/11
Category: Portfolio

9 comments