I manage funds of multiple clients and find Stratzy worth trying. However, the Lower Limits of Max. Capital Allocation of an Algo(Say, Just 3.20L to Curvature) is causing me to think of shifting to some other Algo platforms where there is only Min. Capital Limit but no Max. Allocation Limit.
Please consider this a necessary requirement:
Removing the Upper Limit will let a user decide the amount s/he wants to chip in, instead of compelling them to put money in low performing algos in the name of Diversification.
You’re likely managing large HNI fund allocations. If the capital allocation limit is increased, slippage for smaller trades may rise due to higher-value/volume orders impacting the market. I support strategy of capping this at Rs 3,20,000.
When I subscribed to stratzy there stand point was for making algo trading avilable for retail traders and investors, capping capital per algo at 3.2 still aligned with that physoclogy, from a retail who trade on his own money only and leverage technology for algo it seems right thing to cap it . Otherwise it becomes kind of institution algo system ,which I don’t think is correct of stratzy as a organisation or atleast I understood them that way , a organisation who brings algo trading for retail traders
@Shiv_Kumar, Nope. They’re just regular people with decent income I am managing portfolios of. I second your point of slippage for smaller trades but that would anyways be there even if Stratzy increases its allocation limit.
@M_P_Patil It’s not just Stratzy but some other algo trading platforms as well which have mentioned their Min. Allocation Amount but honestly, 3.20L feels too less.
My Personal Experience: Another concern is when I tried diversifying the managed portfolios, many of Stratzy’s algos overall caused me good loss in a couple of portfolios whereas it managed to squeeze some decent profit in some. This wouldn’t have been the case had I invested the amount in just my favorite algos which I knew would have made profits more.
PS. There’s no plan to invest a huge amount but a very decent one but restricted it to just 3-4 algos.
We completely understand your concern, and we’ve received similar queries regarding the maximum capital limit.
Our intention is to emphasize overall portfolio allocation rather than encouraging investors to deploy a larger amount into a single algo. Instead, we recommend diversifying your capital across multiple algos.
Allocating a significantly higher amount to a single algo can sometimes lead to higher exposure to a particular strategy, which may also result in deeper drawdowns during adverse market conditions.
That’s why we recommend combining multiple uncorrelated algos. A diversified portfolio of uncorrelated strategies can help improve risk-adjusted returns, reduce overall portfolio volatility, and provide a more stable investment experience over the long term.
Our objective is not just to maximize returns, but also to help you build a well-diversified and resilient portfolio.
Additionally, if you have a larger amount of capital and would like to discuss how to structure and manage your overall portfolio, we’d be happy to help. As you mentioned that you also manage funds for your clients, please feel free to send me a DM. We can have a detailed discussion on portfolio allocation, diversification, and building an optimal combination of algos based on your investment objectives.