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No. of Recommendations: 6
So this past quarter, I made a change to force all accounts into exact / near-exact allocation.

So I have two reference accounts now*:
1) Accounts with margin which include shorting
2) Accounts with no margin

And I use IB's rebalance tool to set these allocations exactly (at least within a single share for percentages). I'm not sure how often I will rebalance fully across all investments (probably once each quarter), but whenever I make a trade I use the rebalance tool, so each time I trade it's shifting every account back into balance. For new clients I am thinking I will now force them fully into the allocation day 1... this has obvious draw backs (and benefits) but I think it's the way to go.

Anyway, I have a few immediate takeaways after being in this new space for a few weeks:

1) I'm SO MUCH HAPPIER.

2) My executions are much better (and of course more uniform) --- I can now always add liquidity with my trades (use limits 100% of the time), and I can lighten up on big quick moves (if I happen to see them, and be looking to sell down)... because it's really trivial to lighten up everyone 20bps or or something.

3)Same benefit on the buyside of course.

4) There are some small investments I don't think I would have been able to make before (due to logistics of trading, not for any other reason), but now I can because everything is so much simpler.

Anyway, if you like me had a legacy of all accounts being slightly different... think about it... it's a pain to transition (took me 1 month or more) but once you get here, it's better.

My 2 cents,

Ben

* - I have 6-7 accounts not at IB which are problematic still, but easy to deal with, I just make sure I check them once each quarter... and many will be migrating to IB soon as IB increased the number of account types they support. :)
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No. of Recommendations: 3
Congrats on the successful migration to this approach. I have used rebalance tool from day 1 almost. i asked IB when i was starting as i thought of this issue. got lucky to get good advice.

I still do not migrate new clients into allocation day 1. it can go either ways. i am also debating what you just said. get them in day 1. that way you dont have to worry about forgetting and also going back weekly or worse trying to get each stock 3-5% or some random % below the price since their account started. your mind can play all kinds of games on you...

I do not rebalance quarterly but when i trim / add a position i use it and that helps.
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