To get started, begin by creating a model on the Create Models page found in the Advisor Broker Portal under Menu > Trade > Models > Create Models. You can later invest a given portion of one or more clients’ funds to it. Every model is referenced by its name. This cannot be changed once set. The description can still be changed.
You can then add instruments and set target investment allocation percentages (also known as 'targets') for each one. The target percentage field is edited directly. When setting a target for each instrument, note that:
- The lock icon can be used to prevent any further changes to its target.
- The ‘Clear’, ‘Rescale 100%’ buttons will act on all unlocked targets.
- More than one target can be locked at any time.
- A very small target may not result in an order.
For example:
If your model comprises five instruments, you might set your target percentages to:
-
- Instrument A: 10%
- Instrument B: 15%
- Instrument C: 15%
- Instrument D: 25%
- Instrument E: 35%
It is also worth noting that the currency for a model is fixed and gets set with the addition of the first instrument.
You also specify the type of model to be either a static or a dynamic model.
- Static: If you set your model to 'Static', these targets are saved and applied each time you invest in the model, and are used as the targets when you rebalance the model. Note, you can edit these targets at any time.
- Dynamic: As prices change, the targets you defined initially will also change. For example, they might have now drifted to:
-
- Instrument A: 12%
- Instrument B: 22%
- Instrument C: 7%
- Instrument D: 33%
- Instrument E: 26%
If you have set your model to 'Dynamic', the next time you invest in the model it will aim to get as close to the latest targets as it can.
Once you have finished creating the model, click 'Save Model'. The new Model is now :
- Available for making investments
- Visible in the 'Models' tab of the 'Accounts - Portfolios' page and in the 'Models' page (under 'Trade' in the menu).