We do our best to find the best stocks for you to buy based on the specified parameters and target allocations in your portfolio.
You can set the following parameters:
- Top-up amount is the sum you are willing to deposit to your portfolio
- Consider the price - whether or not you would like to consider the current deviation of the stock price from the average when selecting the optimal stocks to buy
- Fractional shares - whether or not you would like to replenish your portfolio using fractional shares (if your broker allows it)
- Minimum per share - the minimum sum you want to spend on 1 share, with fractional shares included. The deposit amount for each holding will be calculated as a multiple of this value
- Holdings balance allows the recommendations to be carried out considering just the final target allocation of each holding
- Category balance allows the recommendations to be carried out based on the target allocations of categories. For example, if the real share of the current category in the portfolio exceeds certain limits but there is an imbalance within the category, the assets from this category are still not recommended for purchase
How it works
If Consider the price is off, we calculate the share that the stock should take up in the portfolio and compare it to the percentage it takes up at the moment. If the current percentage is less than the desired one, this share will be recommended for future purchases. Recommendations will be sorted from top-ranked to low-ranked ones - the more % of the desired holding is missing, the higher on the list this share type appears.
If Consider the price is on - in this case, we will also try to balance the portfolio based on the % of shares in the portfolio, but when allocating funds we give preference to those whose current price is lower than the average.
- The top-up amount is $5
- Asset 1 – its share is 50% of 50%, average price is 20$, current price is 20$
- Asset 2 - its share is 10% of 11%, average price is 20$, current price is 21$
- Asset 3 - its share is 11% of 10%, average price is 20$, current price is 15$
- Consider the price is OFF 🔲.
Recommendations would be as follows:
- Asset 1 - 0$
- Asset 2 - 5$
- Asset 3 - 0$
Consider the price in ON ✅. Recommendations would be as follows:
- Asset 1 - 0$
- Asset 2 - 0$
- Asset 3 - 5$
Note that despite the fact that you have a larger share of Asset 3 than it is planned/desired, you are recommended to buy more of it because its price is currently lower than the average. It happens even in such cases when there is Asset 2, the share of which is lower.
BUT, if the share of Asset 2 were 5% out of 11% - that is, MUCH less, we would advise you to buy it, even though its current price is higher than the average.