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Stockfuse for Android v6

Our one-month-old Android app received a major upgrade this week, bringing a slew of new features and enhancements.

Portfolio Analytics, which provides interactive charts of your cumulative returns, Sharpe ratio, rolling equity beta, daily Value-at-Risk (VaR), etc. are now available on Android, providing deep insights into your trading performance and the risk/reward of your strategies. We’ve also added the much requested Leaderboard, allowing you to easily view the top performers in each game.

Notifications are there too. Now you can get notified whenever other Stockfusers follow you and whenever a new badge is awarded.

We’ve also taken the opportunity to streamline the UI of our App, providing you easier access to the Feed and the Portfolios.

This is without a doubt our best Android app yet, and we can’t wait to hear your thoughts on it!

Announcing Stockfuse Champions for March 2015

We’re excited to welcome the third group of stockfusers into the Stockfuse Champions Program:

  • @poochan delivered a whopping 55.8% return in February. His short $VXX trade worked out splendidly as volatility declined substantially over the course of the month.
  • @kmhiggins85 was up 29.8%, driven by his successful bet on a temporary relief in Greece.
  • @pmcneil24 generated a 29.4% return and has proven himself an astute energy trader. The gains are distributed across several positions, including $REXX and $AREX.
  • @26Mets26 generated an ROE of 28.3% with some very well timed $NBG trades.
  • @lk30696 returned 27%, riding the (mini) recovery in oil prices and profiting from the repricing in $FXEN, $AMRN, $EXXI, etc.

Other traders in the top ten list include @pg, @Evgeny, @zjyangela, @frankro, and @davidjacobson28.

Meanwhile, the selection process for April 2015 is underway, and you’re automatically eligible. Keep up the great trades and the next champion could be you! For more information about the game, check out stockfuse.com/champions/.

New @ Stockfuse – P&L Attribution, Better Leaderboards & More

Over the weekend, we deployed a huge upgrade to Stockfuse and we’d love to discuss some of the most notable changes.

Stockfuse has always provided a slew of data on your investment returns, but it’s not particularly easy to figure out how you made or lost money historically. To address this, we’re introducing P&L Attribution, accessible under the “Analytics” tab on your Dashboard. This new tab provides a detailed breakdown of your profits and losses on each position and on each day. You can even toggle between the daily or cumulative P&L across different investment horizons, gaining deep insights into your profitability.

Stockfuse P&L Attribution

We’ve also taken the opportunity to significantly enhance our Leaderboards. It is now super easy to see the top traders for common investment horizons, such as one day, one month, month to date, and so on. Leaderboard has also taken on a more prominent location on the home page, allowing faster access.

For administrators of premium games, we have significantly enhanced our Pulse report to provide more accurate analytics for both web and mobile activities in your games. And for our corporate clients, we’re introducing an enhanced Compliance page, helping you manage trades in your games more efficiently than ever.

Stockfuse has been growing at an astounding pace (thanks to all of you!) and we’ve taken measures to improve the efficiency of our backend. Several of our most computationally intensive routines are now at least 100% faster. We also added servers to support our growing user base. These efforts should make our website and apps snappier than before.

We’re fully committed to making Stockfuse the best simulated trading game platform in the world and we hope these changes further improve your experience on Stockfuse. Per usual, please share your feedback with us!

Stockfuse for Android

We are excited to announce that Stockfuse is now available for Android!

The Stockfuse for Android app allows you to view the timeline, review your performance and ranking, and even submit new trades – now from the convenience of your Android phones.

Give it a try. We hope you enjoy it as much as we do! And if you have any feedback/requests, do let us know in the comments or you can always email us at [email protected]!

Stockfuse for Android

New @ Stockfuse – Transaction Cost Model

Most virtual trading games execute orders at the last observed market price. This can be problematic if the security being traded is illiquid or the size of the order is large. As many readers may know, stock trading involves a bid/ask spread – investors buy at ask prices and sell at bid prices. Of course, the ask price is higher than the bid price, allowing market makers to capture a profit. On many simulated trading game platforms, however, it is possible for investors to buy at bids and sell shortly afterwards at the slightly higher asks, producing risk-free profits. Stockfuse mitigates this issue by incorporating bid/ask into our execution prices, but we can do a lot better.

It is well known that even large cap funds lag their paper portfolios by 0.5% a year on average, because of a myriad of implicit transaction costs. At Stockfuse, we are committed to providing accurate and realistic trading performance that’s reproducible in the real market. To that end, we are introducing a suite of proprietary Transaction Cost Models (also called implementation shortfall models). These new models enable us to calculate the “market impact” for each order, allowing us to provide far more realistic execution prices. To our knowledge, such advanced models have never been used by simulated trading game platforms before.

The inner workings of the model is beyond the scope of this blog post, but intuitively:

  • Stocks with larger bid/ask spreads are more costly to trade;
  • If you buy or sell a large quantity of a stock at once, the execution cost tends to be higher;
  • If a stock is illiquid (i.e., trading volume in the market is low), the trade will be expensive;
  • When volatility is high, execution costs tends to be higher as well.

For most users, this new model will not make much difference, if any. However, if you execute 100,000 shares of a penny stock, you’ll see the execution price deviating from the last observed market price, just like in real life. As a simple example, buying 100 shares of Morgan Stanley can be easily absorbed by the market, but buying 50,000 shares of MS at a rapid pace will result in some temporary supply/demand imbalance and raise the execution price by about 0.08%.

We expect these new models to completely remove unrealistic liquidity arbitrage trades on Stockfuse. Your P&L will also be much closer to what you’ll actually be able to accomplish in the real market, providing you with more confidence in your strategies.


Appendix: The Stockfuse Transaction Cost Model accounts for the following components:

  • Instantaneous Impact: The cost associated with spread crossing. This is approximately half the bid-ask spread if you always buy at asks and sell at bids; however, we account for the fact that most investors can execute at better levels than bids and asks.
  • Transient Impact: This reflects the temporary imbalances between supply and demand caused by the trade. Intuitively, a buy order raises a stock’s price temporarily in order to attract sellers.
  • Permanent Impact: This is the final change in the equilibrium price caused by the trade. Intuitively, if you buy a stock, other market participants may perceive your action to indicate that you believe the fair value of the stock should be higher. As a result, the equilibrium price, after the trade has completed, will not return to the original level, but should stay slightly higher.

Stockfuse provides Transaction Cost Models for different trading styles, such as VWAP and With Volume. We also allow customization of trading horizon (for VWAP) and participation rate (for With Volume).

New @ Stockfuse – Report Card & Visual Tweaks

It’s been just eight days since 2015 started, and we’ve already added a slew of new features and enhancements to the Stockfuse platform.

One of the most important features is our new “Trader Report Card.” The report card provides an overview of your investment performance, trading styles, even your behavioral biases and overall engagement level. This is just one example of Stockfuse painting a more comprehensive picture of you as a trader. And we’re just getting started! There will be a lot of exciting additions coming to the report card in the future.

Stockfuse Trader Report Card

We’ve also made sweeping changes to the visual styles of Stockfuse. The web platform and our mobile app now share the same design principles and look-and-feel. The two platforms will continue to converge in the next few weeks.

As we refresh the appearance of the web app, we’ve also taken the opportunity to redraw all the charts, making them more visually attractive and interactive.

We hope these enhancements make your experience on Stockfuse more enjoyable. Per usual, if you have any feedback, please let us know!

Our First Ever Stockfuse Champions

Happy new years from Stockfuse! As we start the new year, we’re extremely proud to announce the first batch of the Stockfuse Champions:

  • Steven_SAS (38.11) shrewdly shorted oil throughout the month and benefitted substantially from the whopping 22.6% decline in OIL price last month. This is without a doubt THE best macro trade of the year.
  • kashtrader (27.13) held a portfolio with both macro positions as well as individual stock picks. Like Steven, kashtrader also generated substantial returns from his OIL shorts. In addition, his negative bet against LOCO is one of our favorite trades this month and worked very well in his favor.
  • skywindwolf (23.12) maintained a short-only portfolio, benefiting from the sharp decline in oil prices, as well as continued depreciation in yen and euro.
  • yungspecter (19.23) is a contrarian and put on a levered short position in AAPL. AAPL had a rough month, declining 7.2%, driving yungspecter to the #4 position on our leaderboard.
  • phillipd (14.66) held a portfolio across sectors. His best trades include longs in RFMD, HD, and ANW.

These Champions will be trading in our exclusive Stockfuse Champions Contest and will receive cash rewards tied to their trading performance going forward. Please join us in congratulating them for their excellence in investing!

The rest of our users are automatically eligible for selection in the Champions Program next month. If you’re not familiar with the program, please refer to this page!

Stockfuse for iPhone v2.1 is now available

Stockfuse for iPhone v2.1 is now available in the App Store!

In this new release, we continue to refine our innovative “Stack” user interface, making it super easy to flip through related trades, while gaining a strong sense for the historical context of each trade.

We also provide more detailed account information on your Portfolio Dashboard. You can now view your account value, P&L, leverage, buying power, as well as margin requirements on the go.

All of the charts throughout the app have been updated as well. Slide two fingers on a chart to see absolute and percentage changes between any two dates. For example, you can see how much money you made between any two dates with very intuitive gestures.

For new users to the stockfuse app, there’s now a short tutorial to get you up and running more quickly.

It’s hard to believe this, but the Stockfuse app is less than two months old, and we’ve already released five updates. This is likely the final release for the year, so we’d like to take the opportunity to wish everyone a happy holiday!

stockfuse for iPhone v2.1

New @ Stockfuse – Social Stock Screener

We are really excited to introduce the Stockfuse Social Stock Screener!

There are many awesome stock screeners out there already, so we don’t want to reinvent the wheel. Instead, we’ve created a “user-centric” screener that let’s you look for stocks based on who’s trading them.

With a few clicks, you can quickly filter stockfuse users based on their investment performance, Sharpe ratio, beta, risk-adjusted excess return, as well as reputation. We then present a beautiful rendering of who these traders are, their average performance, as well as an interactive graph of their most recently traded stocks.

Stockfuse Social Stock Screener

The securities are represented by colorful bubbles, and can be grouped dynamically by a number of attributes, such as market cap, sectors, dividend yield, etc. We also let you adjust the size of the bubbles based on different attributes. This allows you to, at a glance, see what the biggest movers are today, what the highest dividend stocks are, etc.

Stockfuse Trading Game FAQ

This blog post is outdated. Please refer to the Stockfuse Wiki for the latest FAQ.

Where can I find tutorials on using Stockfuse?

Please visit the Stockfuse Wiki!

What happens if I submit a trade outside of market hours?

Your trade will be queued for execution when the market reopens. For US equities, this is 9:30 a.m. EST on the following business day. Since all trades are executed at the latest market price, it is not guaranteed that you’ll receive the exact opening quote.

Can I have multiple trading portfolios? I’d like to test different strategies.

Absolutely. By default, everyone is enrolled in our flagship Stockfuse Continuum Game. If you need a different portfolio, just create a new game for free!

Why is the price I received somewhat different from the current market price?

Stockfuse uses proprietary Transaction Cost Models to account for market impact and to quote more realistic prices. This market impact tends to be close to zero for most trades executed on Stockfuse. However, if you purchase a large quantity of an illiquid stock, the market impact can be substantial. Intuitively, if you execute a large buy order, the market will not be able to absorb it and the execution price will rise in order to attract sellers. This market dynamic is accurately reflected on Stockfuse. For more information about our Transaction Cost Model, please refer to New @ Stockfuse – Transaction Cost Model.

Does Stockfuse charge commissions? Are there bid/ask spreads in trading?

Sometimes – commission and slippage vary from game to game. When you are on your game Dashboard, click on the “Action” button in the top-right corner, then select “Game Rules” to see the trading costs for the game.

What is price target? Why are some of my price targets hidden?

Price target is where you think the stock is headed. If your price target is “irrational” (e.g., you’re buying a stock but your price target indicates that you think the stock is going down), then the price targets will be hidden.

It’s cumbersome to type in rationale. Can it be made optional?

Investment rationales are as important as your trading performance, if not more. Performance can be driven by luck, but investment rationales more accurately reflect your thought process and analytical skills.

Investment rationales are particularly important if you are trading in one of our bank-sponsored trading games. Administrators read and score your rationales and identify trading talent accordingly. So take your write-ups seriously!

Does Stockfuse pay dividend?

Yes. Dividend is automatically added to your cash balance on the payment date.

Does Stockfuse adjust for stock splits?

Yes. When a stock split occurs, we automatically adjust the number of shares, average cost per share, and your price target.

How come cash can be negative?

Stockfuse provides Regulation T-compliant margin accounts. Stockfuse Continuum, for example, provides $100,000 in initial cash, but allows you to purchase up to $200,000 worth of stocks. This is called “trading on margins.” For more information, read Understanding Stock Margin Account.

Does Stockfuse issue margin calls?

Yes. If we project that your SMA (Special Memorandum Account) will be negative at the end of the day, we’ll send you an email alert. You should take action to ensure margin compliance. If your SMA is less than –$3000 at 4:00 p.m. EST, we’ll liquidate some of your positions to bring your SMA positive.

Why can’t I trade micro-caps?

Stockfuse Continuum only allows you to trade stocks with a minimal market cap of $100 mn. However, you can create your own game and set the minimal market cap to any number you want!

I don’t want others to see my trades. Is that possible?

All trades in Stockfuse Continuum are public – after all, stockfuse is an idea sharing platform! If you’d like some privacy, just create a new game and email us at info [at] stockfuse.com to make it private.