Firm Trade Settings

Oranj allows you to manage three groups of trade settings across your firm: Cash Settings, Model Deviation Tolerance, and Trading. This helps you establish settings unique to individual strategies, or how you prefer to handle trades across your entire business.

Screen_Shot_2019-03-27_at_4.10.11_PM.png

Cash Settings

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.

Screen_Shot_2018-11-27_at_2.43.06_PM.png

Model Deviation Tolerance

Tolerance Bands

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.

Tolerance Type

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.

Relative

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%.

Absolute

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%.

 

Screen_Shot_2018-11-27_at_2.43.13_PM.png

Trading

Trading settings impact how and when trade orders are created.

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.

Screen_Shot_2018-11-27_at_3.10.14_PM.png

 

Rounding

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.

 

Screen_Shot_2018-11-27_at_3.14.41_PM.png

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.