Double gives you control over your investment portfolio by adjusting the target weights of your chosen Strategies, rather than making individual stock trades. When you "Buy" or "Sell" on Double, you're providing instructions for these target weights. Double's automated system then calculates the optimal trades given your target weights (along with other factors) and executes those optimal trades during the daily Trading Window.
How to Buy on Double
Select a funding source.
Buy with Cash: Deploy from the cash balance in your Double Account.
Note: This option is only available when Cash weight is above 0%. A fully invested portfolio may still have a cash dollar amount. This is required to ensure optimal performance of direct indexing and tax loss harvesting. Another instance would be if there are recent cash dividends, that have not yet been re-invested.
Deposit New Funds: Transfer in new money from your linked bank account into Double for investment.
Define amount to buy and allocation
Enter the dollar amount you want to invest
Decide how these funds will be allocated to your strategies
Proportional: Deploy across all active strategies by their current weights. This helps maintain your established portfolio balance.
Custom: Specify the dollar amount to allocate to each strategy. This allows you to actively increase your investment in particular areas.
Review and confirm
Projected Target Weights: Before finalizing, you'll see a summary of how this buy order will adjust the target percentage weights for each strategy affected in your portfolio.
Wash Sale Consideration: Choose how you'd like upcoming trades to be executed to meet these target weights.
Prevent Wash Sales (Default): Double's generally recommended setting for tax efficiency. If a planned purchase could create a wash sale, Double will work to avoid this. This might lead to being under-weight vs your targets for up to 30 days until the wash sale period(s) pass. Your funds are still put to work, just with this tax optimization rule in mind.
Allow Wash Sales: This options is available if your priority is to have your new target weights achieved as quickly as possibly (typically in the next Trading Window), regardless of potential wash sale implications (which could mean a tax loss is deferred).
Once you've reviewed the details and confirmed, your weights will be updated for the upcoming Trading Window.
How to Sell on Double
Specify amount of cash to generate and where funds are sourced from
Enter the dollar amount you wish to generate
Decide where these funds are sourced from
Proportional: Sell across all active strategies by their current weights. This aims to raise cash while maintaining overall portfolio balance as much as possible.
Custom: Specify which strategies to sell from and how much from each. This gives you direct control if you want to reduce exposure in specific areas.
Review and confirm
Projected Target Weights: Before finalizing, you'll see a summary of how this sell order will adjust the target percentage weights for each strategy affected in your portfolio.
Wash Sale Consideration: Choose how you'd like upcoming trades to be executed to meet these target weights.
Prevent Wash Sales (Default): Double's generally recommended setting for tax efficiency. This might lead to being over-weight vs your targets for up to 30 days until the wash sale period(s) pass. Your targets are still set, but just with this tax optimization rule in mind.
Allow Wash Sales: This options is available if your priority is to have your new target weights achieved as quickly as possibly (typically in the next Trading Window), regardless of potential wash sale implications (which could mean a tax loss is deferred).
Once you've reviewed the details and confirmed, your weights will be updated for the upcoming Trading Window.
Key Reminders for All Portfolio Adjustments:
Trading Window Processing: All "Buy" and "Sell" instructions you confirm are changes to your portfolio's target weights. Double’s optimizer uses these new targets to plan and execute trades during the next available Trading Window. These changes are not instantaneous market orders.
Wash Sale Option Explained:
The "Prevent Wash Sales" default is designed to help you maximize potential tax benefits by avoiding the wash sale rule (which defers tax loss claims if you buy a substantially identical security within 30 days before or after selling at a loss).
Opting to "Allow Wash Sales" prioritizes achieving your new target allocations in the very next trading session, even if it means a specific transaction might be classified as a wash sale.
Your Strategy, Our Execution: Your role is to define your investment strategy through target allocations. Double takes on the complexity of trade execution, ongoing rebalancing, and working to optimize for factors like taxes.