Forum: Collective2 Suggestions, Feedback, Questions
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| Subject: | Issue with buy power |
| Posted by: | Daniel Ekstrand ( C2 Score: 575 ) |
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| When: | 7/21/12 (10:05) | |
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| | One of my systems shows over $9K of buy power, yet when I tried to purchase an additional $2K worth of shares, an invalid signal error popped up stating that I have insufficient cash. Am I unable to borrow against equity gains?
Thanks,
Dan |
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| | In response to post by Daniel Ekstrand of 7/21/12 (10:05) One of my systems shows over $9K of buy power, yet when I tried to purchase an additional $2K worth of shares, an invalid signal error popped up stating that I have insufficient cash. Am I unable to borrow against equity gains?
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Because the C2 margining simulation tries to account for margining across multiple instrument classes from a single "bucket" of margin, it can behave in ways that are a bit perplexing and mysterious.
But, basically, what you need to know is this: you must have both enough buying power andenough cash (assuming you are trading an instrument that requires cash outlays for purchase, as stocks do).
We do allow the use of margin for stock purchases. You are allowed to borrow up to half the purchase price (for stocks $5 or greater). So, if you have (for example), $10,000 in cash in your C2 Model Account, you are typically allowed to purchase $20,000 worth of stocks. But having enough cash for the 50% purchase is one constraint that must be met. |
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| Subject: | Issue with buy power |
| Posted by: | Daniel Ekstrand ( C2 Score: 575) |
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| When: | 7/21/12 (13:23) | |
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| | In response to post by Matthew Klein of 7/21/12 (10:20) Because the C2 margining simulation tries to account for margining across multiple instrument classes from a single "bucket" of margin, it can behave in ways that are a bit perplexing and mysterious....
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Thanks for the quick response.
So if I understand this correctly, say I purchase $20,000 of XYZ stock using all of my cash ($10,000) and the value of XYZ goes up to $30,000. I am unable to purchase more XYZ - since I have no cash - but if I sell it all and immediately repurchase it, I can buy $40,000 worth.
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What is the C2 Score?
Collective2 rates every trading advisor in its database and assigns a score between 100 and 1000.
In general, a rating above 500 is good. A rating above 700 is excellent.
Collective2 Ratings are recalculated daily based on the entire performance history in our database. The exact formula we use is proprietary, but there are several key variables that go into the Collective2 Rating. One of the most important factors is the length of time we have been able to observe the performance of the trader. Another key factor is the amount by which the trader over-performs or under-performs the S&P 500 index. Finally, the choppiness of the trader's results is taken into account. Certainly a more consistent trader will be rated more highly than a trader with erratic results.
