It appears the margin issues with Ox Securities are reaching a “better” resolution. Better meaning 1:200 is better than 1:100. Yet, it is a far cry from 1:500.

Within the NURP community, they are suggesting a very positive outcome if an email is sent to Ox Securities. It appears a little groveling while muttering, “NURP” will get you 1:200 leverage. Obviously, this is not a return to 1:500 leverage. Since the bots need 1:200 to work, it will at least keep you and your tractor in the field.

The big lesson I have learned from this is don’t let your account get too big. What are the pros and cons of having a big account?

Pros

1. When using a NURP bot, you don’t pay an additional monthly software fee. In my case, I pay $297/month. This is if I have $20,000 or $200,000. Quickly, you realize the benefits of a larger account. [NURP has some plans that have different monthly fees for larger accounts. EFX does grow the monthly software fee when the account grows.]
2. Having all of the money in one account keeps the other stressors low, too. You only need one VPS and you don’t need to to transfer money to a large number of brokerage accounts.

Cons

1. If brokers change the rules, you don’t have much you can do. If your account leverage is changed to 1:100. Your bot won’t work effectively, and your account could become dangerously close to the “heart attack” zone.
2. Limiting yourself to one account leaves you vulnerable to bot issues. If you have one bot and it gets distracted by trades that reverse slowly, you may have some slow months. And, you could be in drawdown for a few weeks. When a trade lingers too long, the swap fees also increase. Unfortunately, not all bots factor in the swap fees when calculating the “take profit” price.

The news from Ox Securities is a positive thing for investors with well-funded accounts. My strategy remains: I would rather have a few good tractors than one that is top of the line.