Security equivalents allow you to protect low cost basis positions in client accounts while simultaneously considering these holding towards your target allocation. Autopilot allows you to specify equivalents at a global level - meaning equivalents only need to be set once and will be applied to any target model where an equivalent is found.
Creating New Equivalent Rules
1. First, navigate to Settings > Autopilot.
2. Click + NEW SECURITY EQUIVALENT to add your first equivalent rule.
NOTE: By default, only firm administrators have permission to set security equivalents. If you don't see the option to add equivalents, please contact our support team.
3. To create a rule, start by selecting the model security you'd like to set an equivalent for.
4. Next, select one or more equivalents. Equivalents are account positions to be traded in place of the specified model security.
Next time you trade an account, the Autopilot trading engine will check the securities within the target model to see if they have an existing rules. If an equivalent rule is found, Autopilot will take the target allocation of the model security and make this the target allocation percentage for the security equivalent instead. You can verify that an equivalent is being used by looking for the equivalents-in-use icon in the trading dashboard.
If you add or remove a security equivalent that is being used in a pending trade list, it may take up to an hour for the trade list to update with the updated or deleted equivalent.
Frequently Asked Questions
Can I set a security equivalent but still prefer the model security when I'm buying to target?
We'll be adding support for this soon, but right now we always chose to buy/sell the equivalent regardless of whether or not the current holding is overweight or underweight of the target.