How do you put together strategies such as "High Performance Small Cap"?
Does your backtest include delisted stocks to avoid survivorship bias?
Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
301–310 of 434 posts
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#302Earlier quoted context omitted.
Order flow in dark pools does impact the price of a security. The market maker will eventually need to trade out of that position. If there is aggregate buying pressure in the dark pool, they will adjust their quotes in both dark and lit markets.
> The market maker will eventually need to trade out of that position This is why Citadel has $60+ billion dollars of "securities sold not yet purchased" on their financial statements. They have sold $60+ BILLION of shares to investors and not yet bought the underlying securities. So when exactly will that $60 billion of buy pressure hit the market?
If you actually don't understand why that citadel statement said that you should read up on how market makers work. Any given snapshot in time for them would have enormous quantities of securities on both sides because they have to hedge all of their activities to remain neutral to any price movements.
>So when exactly will that $60 billion of buy pressure hit the market?
it probably did shortly after the statement, coupled with a likely similarly sized "sell pressure". They're constantly buying and selling things that's how the business model works
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#303Earlier quoted context omitted.
> They have sold $60+ BILLION of shares to investors and not yet bought the underlying securities. > So when exactly will that $60 billion of buy pressure hit the market? Citadel needs to deliver the stock they sold on T+1 as of May 28, 2024. There's some allowance for failure to deliver, but the data is out there, if Citadel is routinely failing to deliver, you should be complaining about that, not about their finan…
they can keep failure to deliver forever until the market moves in their desired position to actually send orders to lit market. they use derivatives and heavily recycle buy/sell shares to keep kicking the FTD can down the road for as long as the market returns to their desired position.
No they can't. They can keep a short position but that isn't failure to deliver.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#304Earlier quoted context omitted.
A naked short on their own account would be illegal. A time-bound naked short to fulfill their role as market maker would be acceptable. But even then, all trades are either eventually settled at some time t, or fail to settle, e.g. if the seller is not good for the shares. Any of these 2 events happening is reported outside of a single broker-dealer, i.e. public info. And to settle a trade, you will need the actual…
Well we all know financial institutions never do anything illegal. https://www.sec.gov/newsroom/press-releases/2023-192 https://www.sec.gov/newsroom/press-releases/2017-11 > But there would be so many other parties discovering it way before their annual financials are published. Looking at Bernie Madoff I'm not sure this is really the case...
Bernie didn't trade. That's why no one has anything to report.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#305Services like this can be very, very difficult to leave. Be aware that if you are doing direct tax indexing with tax loss harvesting, you are increasing your tax liability in the future. If you invest in direct indexing here, you have three choices if they tack on fees or you are unhappy with their service: 1. Take a random assortment of 300+ stocks and watch your portfolio become unbalanced over time 2. Liquidate yo…
Under 2, why would you end up worse off? I'm decidedly unsophisticated in this domain.
Because liquidating / selling your shares is a taxable event. If you purchased a simple ETF to begin with, your tax burden would have been lower.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#306Earlier quoted context omitted.
> SIPC protection covers against a brokerage firm failing, which in our case is Apex Clearing. We are not currently a brokerage so SIPC would not apply if Double goes bankrupt. I thank you for being upfront and honest about this. The tough spot you'll find yourself in, then, is that if any money goes missing between you and Apex, customers are completely SOL. This is not a theoretical risk, this is exactly what happe…
I'd argue the specifics are quite a bit different than Yotta/Synapse. We do not hold any funds ourselves. You connect your bank and ach/wire money to an Apex bank account. You can verify your holdings via apex anytime (see: https://help.double.finance/en/articles/10262406-how-can-i-v... )
Yotta does not hold any funds themselves. You connect your bank and ach/wire money into an Evolve bank account.
The problem is that unbeknownst to users, Evolve had no record of what belonged to which user—it all came via Synapse on behalf of Yotta. And when Synapse went bankrupt, everyone pointed fingers about where the money is and who it belongs to.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#307I would need to know where your revenue comes from before I would consider putting money with you. Clearly $1/mo is not going to be the only revenue opportunity you go for. It's good that my assets are safe if you go under, but with direct indexing I'd be left with a giant mess of thousands of individual stock positions that would be very difficult to unwind manually. I don't care that much about saving .03% over SCH…
We choose to lead with the expense ratio savings in this marketing push, but I really think the platform allows for the best investment account out there with tax loss harvesting built in, dollar cost averaging between positions and stock or sector customization.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#308Any relation to Boldin Financial Planner? Your sites and logos are extremely similar.
No relation but I have shared some emails with the founder and we are both in SF I believe.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#309> There are a number of robo-advisor products out there, but none that we know of offer direct indexing without expense ratios or AUM fees. Yeah, I'm a little confused at what you're offering over existing options (e.g. Wealth front, Betterment, M1). If the answer is just "it costs less" won't you raise prices when it comes time to make money? I suppose "the thing that already exists, but slightly better" is not nece…
Other than fees, we are also quite a bit more customizable than most other options you mentioned. We let you do things like rebalance between positions and pick your optimization type, and backtest a screened portfolio. More customizable than most robo-advisors out there and more powerful than brokerages like M1.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#310Earlier quoted context omitted.
I'd argue the specifics are quite a bit different than Yotta/Synapse. We do not hold any funds ourselves. You connect your bank and ach/wire money to an Apex bank account. You can verify your holdings via apex anytime (see: https://help.double.finance/en/articles/10262406-how-can-i-v... )
Yotta does not hold any funds themselves. You connect your bank and ach/wire money into an Evolve bank account. The problem is that unbeknownst to users, Evolve had no record of what belonged to which user—it all came via Synapse on behalf of Yotta. And when Synapse went bankrupt, everyone pointed fingers about where the money is and who it belongs to.
Will reply directly to your comment, as I started the concern in this thread, and I think it's important to point out that the situation is materially different based on what jjmaxwell4 has responded.
With Evolve, money was just pooled into an "FBO" ("for benefit of") account, and not ledgered directly to individual users. This is apparently not the case with Apex since you can verify your balance with them directly. They report your balance, so if any money goes missing, you should have an insurable case with them directly.