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Creating your first automated STRATxAI portfolio
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STRATxAI

February 2024 · 5 min read

How to create an automated stock portfolio

Getting Started

At STRATxAI, we empower anyone to build and manage their own quantitative investment portfolio. With an automated portfolio simply pick a strategy, create a portfolio and the trades are sent straight to your broker.

In order to enjoy the benefits of an automated stock portfolio, you will need to subscribe to an Established or Xplorer plan with the augmentation of Connect.

Stockbroker

STRATxAI offer seamless integration with Interactive Brokers and Alpaca for now (with other brokers in the pipeline). If you do not use one of these two brokers already, you can easily start now.

Before you can create your first automated portfolio, you will need to link your broker account.


Start trading

If your brokerage account is connected successfully and the market is open, then you can create a fully-automated quantitative portfolio.

This guide will help you get a portfolio set up in less than 5 minutes. First go to our catalogue of strategies and choose the strategy that best suits your investment idea (learn how to create a risk budget here).

1: Find a trading strategy that you want to use

Log in or Launch App to go to your personal dashboard and browse the catalogue of stock strategies and search for a trading strategy that suits your risk tolerance.


In this example, we want to find a strategy which contains companies that have mid to large market cap, nice earnings and trade with a slight discount. We will choose STRATxAI's "Deep Quality" strategy.

We choose the Aikido Deep Quality strategy and can click "Create Portfolio +"

2: Create portfolio

Click on your selected strategy or 'create portfolio' to start Portfolio Creation.

In the first step of the flow you will see two buttons: ‘Manual’ and ‘Automated’. Click Automate.

For the automated option to be unlocked

  1. you must have an Established of Xplorer account with Connect
  2. you have successfully linked your Interactive Brokers or Alpaca account
  3. the market must be open.

Automated portfolios can only be created when the markets are open

NYSE/NASDAQ open 9.30AM to 4.00PM EST Mon-Fri

Automated option is unlocked for Premium users connected to their broker
3: Name portfolio

Choose a new name for your portfolio or stick with the auto generated name pre-populated for you.

4: Fund portfolio

Choose your base currency and decide the amount you want to invest. You can invest up to the amount you have available in your Interactive Brokers account.

The amount you decide to invest is equally weighted over each holding in the portfolio.

Currently STRATxAI offers US-only stocks, so the conversion value from your currency to USD($) is shown below the amount you input.

You will need US dollars in your broker account. The easiest way to do this is to execute an FX trade with your broker so the US dollar funds are ready (some brokers may allow you to buy US stocks using funds in a different currency).

Enter your level of investment for this portfolio
5: Confirm portfolio and send orders to your broker

Review the list of stocks generated by the strategy. Once you click Confirm Purchases, the market orders are sent to your broker. They should normally execute within a few seconds. You will know when each trade has executed when it gets the status Filled.

Click X to be offered an alternative stock. Click Buy All to execute the lot.

Next comes the confirmation page which confirms how many stocks were bought.

Click "Next" to be taken to final confirmation page.

Final confirmation page allows you to review the list of stocks for the last time, once you click Confirm Portfolio the process is complete and the orders will be executed.

You are presented with the last confirmation page, click "Confirm Portfolio" to finish.
6: View your portfolio

From Portfolio Overview you can view performance, check out key metrics and view your holdings.

From the Transactions tab you can view transaction level data (every buy or sell you have ever made). If a stock in your portfolio goes through a stock split, delisting, name change, or any other event, it will be handled automatically.

From the Orders tab you can seeing any outstanding, unfilled orders that are yet to be executed.

7: Rebalancing

To keep an eye on your portfolio health, you need to log in periodically to rebalance and keep it in line with the strategy. This is usually monthly. You will be notified via email when your rebalance is due (ensure you are subscribed to our mailing list to receive this).

When a rebalance is due, you will return to STRATxAI, navigate to the relevant portfolio and click the Rebalance button. You will be taken through a wizard to buy and sell stocks and shares in your portfolio. It should take all of about 60 seconds.

You can read a full guide on how to rebalance an automated portfolio here.

2% portfolio creation buffer

When creating and rebalancing your portfolio, 2% of the portfolio amount is held in cash within your broker. This small cash buffer is used to cover slippage, spreads, market volatility, commissions, transaction costs, and any other fees incurred by your broker.

For example, if you are creating a portfolio with a total value of $5000, $100 will remain in your brokerage account to cover any costs associated with the transaction.

STRATxAI do not apply any additional fees to the transactions.

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