price.date, transaction.post_date and neutral time

Alen Siljak alen.siljak at gmx.com
Tue Feb 13 04:12:06 EST 2018



> Sent: Tuesday, February 13, 2018 at 8:13 AM
> From: "Wm via gnucash-devel" <gnucash-devel at gnucash.org>
> To: gnucash-devel at lists.gnucash.org
> Subject: Re: price.date, transaction.post_date and neutral time
>
> That is interesting.  There has been quite a lot of enthusiasm for 
> mobile / gnc interaction.  Have you written about this before and I 
> missed it ?  If MMEX for Android is working well with gnc I think you 
> should make a wiki entry and ignore my view on MMEX as an accounting app.

Done. https://wiki.gnucash.org/wiki/GnuCash_and_Mobile_Devices

> Aside: I am completely confused how MMEX for Android could be used for 
> Asset Allocation, MMEX doesn't understand Assets and Liabilities and 
> Equity!  Looking at the forums, the dev's of MMEX haven't realised that 
> prices aren't available from Y! any more, etc.  Crazy.  If the MMEX for 
> Android app is moving beyond MMEX itself and may be working better with 
> gnc then please let us know,

It's very simple really. MMEX schema supports Asset and Investment accounts. For me, AA is really very simple: 

- we set the allocation. I.e. 10% stocks, 90% bonds.
- we enter the investments we own, i.e. Stocks Fund, Bonds Fund, Direct Bond, favorite company ABC stock, etc. 
- we link the investments (by symbol) to the allocation classes above.
  Stocks Fund => stocks
  Bonds Fund => bonds
  Direct Bond => bonds
  ABC => stocks
- we get the latest prices

All that computer software needs to do (and, deep into 21st century this is the least I'd expect my personal finance app to do) is to calculate the current value of the holdings, therefore asset classes, and say:
"you have 50K in investments, out of which 30% is in stocks and 70% in bonds, while your allocation is 10%/90%".

> Asset Allocation is indeed simple, the problem is that no two people 
> agree on how to do it :)
> 
> Further, most AA models are USA biased, I don't think gnc needs any more 
> USA bias and any model that includes a stock allocation along the lines 
> of "domestic / foreign" is rubbish if you live outside of the USA so 
> let's not go there! [1]

OK. This is an interesting distinction. Are we talking about AA as a concept or a concrete AA implementation (values)? This is kinda class/instance relationship. I'm strictly interested in providing a tool that allows working with AA as a concept, and leave the actual implementation to the user. They can work out their allocations in any way they prefer but the tool should be accessible and use the portfolio data from a GC book.
Just like a text editor, it does not tell you how to write but lets you write some text, save it, view/edit it later, and share it with someone else.

> for a sanity check, I am certain the good people that maintain the code 
> that allows us to get prices do *not* try to maintain a complete db of 
> prices themselves.  there is, quite simply, too much information.

Nobody mentioned a complete db of prices but separating Price information from the rest of the book. Prices are expendable and, as you say, can be retrieved independently. As they are independent of a book, they can be shared across multiple books and/or applications. Which is where I'm coming from. And price information is pretty much the same for any application. It has basic properties of Date(/Time), Symbol, and Value.

> you haven't been looking, there are hundreds of AA implementations, 
> maybe you mean you haven't found many that agree with your 
> preconceptions ? AA is often about preconceptions.

Good advice. I see a few implementations, thanks to Python being so accessible. However, it seems that most of them are dealing with calculating an optimal allocation rather than letting the user manage it, the way ledger-cli (or MMEX 4 Android) does.

> Heh, you just outed yourself as a bad trader :)  A "good" trader doesn't 
> care about capital gains :)

I don't really. But I have to report on it to the tax authorities every year. ;)

On a side note, I'm pretty amazed how few people are interested in AA considering that they are the masters of their own fortune in countries with private pension funds. In countries like Australia, each person is responsible for choosing their superannuation fund, including the asset allocation.


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