Oranj allows you to manage 3 groups of Trade settings across your firm:
- Cash Settings
- Model Deviation Tolerance
By managing these trade settings, it helps you establish settings unique to individual strategies, or how you prefer to handle trades across your entire business.
Account Cash Minimum
The Account Cash Minimum settings allow the firm admin to control the minimum amount of cash all accounts should have. You may enter a dollar ($) value or a percentage (%) of the account value. Oranj will automatically select the higher of the two values for all of your firm's accounts. These fields are optional.
Include Margin Balance in Cash Balance
To activate this feature, click the toggle next to Include Margin Balance in Cash Balance to On. Once activated, Margin Balances will be included in an account's available cash and rebalances. The cash values within the account detail may differ from those on the grid and the card views. If this feature is not activated, Margin Balance values will be excluded from available cash calculations and rebalances.
Model Deviation Tolerance
Model tolerance bands are used to control the amount of drift that is permissible within a model assigned to an account. You can set the High and Low tolerance bands to a default value when any custom model is created or when a strategist model is added to My Firm's Collection.
Once a model has been created, the tolerance values that were present upon creation are assigned to that model. If you would like to edit the tolerance bands for a model you have already added to My Firm's Collection, you will need to edit each model individually.
Setting the Tolerance Type allows you to better control the way your model's tolerance bands are applied. There are two choices: Relative or Absolute.
Using a Relative tolerance type will minimize the size of the tolerance bands relative to the weight of the security or class within the model. Example: If a model with security XYZ has a weight of 10%, a high tolerance band of 10%, a low tolerance band of 10%, and is using a Relative tolerance type, the security will be allow to deviate as low as 9.9% or as high as 10.1%.
Using an Absolute tolerance type will maximize the size of the tolerance bands relative to the weight of the security or class within the model. Example: If a model with security XYZ has a weight of 15%, a high tolerance band of 10%, a low tolerance band of 10%, and is using an Absolute tolerance type, the security will be allow to deviate as low as 5% or as high as 25%.
Trading settings impact how and when trade orders are created, including the ability to turn on the Buy Optimization features which allows you to rank which securities are placed in specific account types (Taxable, Non-Taxable - Roth-IRAs, and Tax Deferred).
Mutual Fund Automatic Sell-All
This setting will automatically generate sell-alls for mutual funds whose values are less than a given dollar amount. After a rebalance is calculated, if a mutual fund value is less than or equal to the set value, sell-all trade orders will be created for those mutual funds. This field can be used to limit your exposure to carrying small quantities of mutual funds.
|Method Name||Buy Trades||Sell Trades||Description|
|Round||Rounded||Rounded||Applicable trades are rounded|
|Ceiling||Round Up||Round Up||Both buy and sell trades typically increase.|
|Floor||Round Down||Round Down||Both buy and sell trades typically decrease.|
Mutual Fund Trade Round Amount Size ($)
You can use this field to round your mutual fund trades to the nearest dollar value. After a rebalance is calculated, Oranj will round your mutual fund trade amounts to the nearest value. Using rounding may result in your rebalance actually creating a deviation between your account and the model assigned to it.
Stock Trade Round Lot Size (Units)
You can use this field to round your stock trades to the nearest unit value. After a rebalance is calculated, Oranj will round your stock trade amounts to the nearest value. Using rounding may result in your rebalance actually creating a deviation between your account and the model assigned to it.
- Stock Trade Example: If you would like to make sure that securities are set to trade in units of 25, you can set the lot size to 25. Once this is set, if a security trade of 39 units was to be generated, Oranj will automatically round up to 50. Similarly, if the trade generated was for 31 units, Oranj will round down to 25.
- Mutual Fund Example: If the lot size is set to 100, and a mutual fund trade of $150.00 is generated, Oranj will round the trade to $200.00. Conversely, if a mutual fund trade of $149.00 is generated, Oranj will round the trade to $100.00.
Activate Buy Optimization
Buy Location Optimization gives you the flexibility to specify which securities are placed in specific account types. This logic is based on the idea that (from a taxable standpoint) there are 3 different account types: Taxable, Non-Taxable (Roth-IRAs) and Tax Deferred. When activated, Oranj will attempt to place the specified securities in the specified account types according to their rankings (explained in the Buy Location Optimization Logic section).
To activate this feature, click the toggle next to Buy Location Optimization to On. Once activated, when you create or edit a model, you will see the rank columns for Roth IRA, Tax Deferred and Taxable. If this feature is not activated, Buy Location Optimization to a household portfolio rebalance. You perform the ranking while creating a model. See the Buy Optimization section of this Help Center to learn how to enact this process.
For more information related to tax-loss harvesting, click here.