After a scale out cash is lower than expected

AFL Programming
1 
Date	Information

19/11/2008
	Entry signals(score):
	Exit signals:
	1 Open Positions: , SPY (+5035.24), Market Value: 396275.06, Equity: 397216.42, Cash: 941.35, Margin: 0.00, Net Cash Balance: 941.35, 

20/11/2008
	Entry signals(score):SPY=Buy(1), 
	Exit signals:SPY=Scale-Out, 
	Scale-Out Long SPY, Price 54.88146, Shares 32.90377, Fx Rate 2.35, Number of shares - Current: 5002.332, Exited: 241.935, Total Cost: 999630.1, Avg. Entry Price 107.0865, Avg. Exit Price 87.34509, Avg Fx. Rate Entry 1.78, Exit 1.783393, Entry+scaling commission 383.8071
	1 Open Positions: , SPY (+5002.33), Market Value: 339580.00, Equity: 342755.01, Cash: 3175.01, Margin: 0.00, Net Cash Balance: 3175.01,

Using AB 7.00 64 bits
EOD database where the base currency is NOT USD.

Above you can see a scale-out of SPY , which has USD set as it's currency
the scale out is doing everything as expected, but in the end my cash is lower than I expected.

19/11 the cash is 941.35

20/11 scale-out 32.90377 x 54.88146 = USD 1,805.81 x 2.35 (fx) =

BRL 4,243.65 - 1.57 (comission is ok with scalling comission) =
4,242.08 + 941,35 (cash 19/11) =
5,183.43 (this is what I expected to see in cash)
but got 3,175.01
diference 2008.42

What am I missing ?

2

Are you using Account Margin (leverage)? If so, a portion of the sales proceeds will be used to pay off the margin used at entry.

1 Like
3

Thanks for helping, but no, I am not using Account Margin

5

Do not know what it does exactly, but it seems that in my case this option must be enabled

image
image517×610 18.6 KB

looks like now the cash is ok

6

It is explained in the guide:

and release notes (changes for v5.71):

Currency tab, option "Trade using FX cash conversion" allows to handle different ways to calculate profits depending on whenever foreign currency is borrowed or cash actualy exchanged

When you actually exchange the cash when entering a trade on security traded in foreign currency then you should have this option turned ON
when you use a loan in a foreign currency, turn this option OFF (the pre 5.71-behavior)

2 Likes
7

Thank you, I saw the image of the tab without the option FX rate conversion, and wrongly assumed that the text explanation was outdated, sorry for that