#9 Nov-23 Month Report

📣 IMPORTANT! Please read the two following points CAREFULLY:

🅰️ I’m still ❗️MAX-AUM-BLOCKED❗️ even though I passed the exam, and my unblocking should be imminent. ⚠️ Copiers, please think twice before leaving the copy, as you won’t be able to re-enter. ⚠️ Prospective copiers, just follow me, and I’ll notify you when I’m unblocked.

🅱️ Figurative dividend only for the moment; it will be distributed as soon as possible, pending clarification on the “Automatic Reallocation System” and its effect on PI withdrawal on copier portfolios.

Good weekend, copiers and prospective copiers. November has been a busy month as I managed to pass the “CISI Level 3 Certificate in Wealth & Investment Management.” This means that I will be upgraded to Elite Level and unblocked as soon as the eToro PI team receives the official communication from CISI. November has not been a bumper month, but the portfolio still managed to pass the 2% psychological milestone, and that is quite gratifying. The positive weekly streak now extends all the way to March for a nice 39 positive weeks. Even if this month, we only had 0.x percentage growth each week, it keeps the portfolio on course for a 40% finish for the year.

The big news this month is the implementation of the “Automatic Reallocation System” on the part of eToro. For those who have not followed, eToro has implemented a new way of managing the copies; this includes, among other things:

• Automatic rebalancing of the copy upon opening, adding, withdrawing, or pausing of the copy on the part of the copier.
• Change from the invested to present value as the anchor of the balancing.

The aim of this change is to make copy trading even more passive (i.e. copy and forget), which is something that most copiers seem to want. However, this is a problem for those that copy and then want to fine-tune the copy with the expectation that they can improve on the performance of the PI. As for my portfolio, the only doubt I have, which I am in the process of clarifying with the PI Team, is the effect that my practice of withdrawal/dividend has on the rebalancing of the copiers. For this reason, I will hold this month’s withdrawal/dividend until I get clarity on the downstream effect my actions might have.

It is too early to express an opinion so early in the implementation, but I see why this change has been put into place. I fail to understand why people use the copy-trade option when their interest is actually active trading. Very often interfering with the PI strategy, for example, by removing cash from the cash balance, unbalances the copy, and I found myself having to advise against it several times. In my portfolio, the large amount of unused cash resources is the only thing that allows me to achieve my returns, by allowing me the freedom to work at 10x leverage with reasonable safety. Anyways, I’m sure many keyboards will be consumed on this topic, and we haven’t got all the data yet to give us a solid platform upon which to make a judgment on this change. Let’s wait and see.

Minor note: I made a small decluttering change to the charts. I believe the percentage chart is sufficient to provide a return overview, while the other one offers a panoramic view of the portfolio and dividends without the need for the incorporation of projections or benchmarks, as they are already set in the percentage chart.

Have a great build-up to the holidays, and good investing.

💰 The dividend for this month will is $2,118.00 (2.12%), which will be issued as soon as possible