Q:I downloaded the trial version and produced a report that is not accurate with many errors. The account I’ve elected mark to market is with mb trading/apex. If I purchase your software will I be able to produce a Form 4797 that is accurate without the need to correct errors? I want to keep this as simple as possible.
A:TradeMax use matched Trades to calculate capital gain&loss.(Long/CloseLong)(Short/CloseShort)
If TradeMax reports an Unmatched Trade in the Scan Information tab(part 4), this means you have closed some securities, but you do not have any open position.
Please fixed these warning first,then use Trademax to generate your Form 4797
Unmatched Trades may be caused by 3 conditions:
1) You do not have FY2011’s Baseline (Baseline position is the holding open position from the previous tax year).
This can be rectified by importing the Baseline function or by manually enter the Baseline one at a time.
2) The Trade sequence is wrong
Some times, Brokers will send one day’s trade sequence en masse, without proper chronological ordering, which will cause problems.
TradeMax allows you to adjust the sequence of the transaction records traded on the same day by moving each transaction up or down the records.
3) Some Corporate Events mightcause the unmatched Trade Error.
In-built functions like the Stock Split, Merge or the Spin-off Action will help you change the stock quantity.
For example, these are some Unmatched Transactions that can be found in a database.
Clicking on the ‘Unmatched Quantity’ (highlighted in blue), will trigger TradeMax to move the transaction to the Unmatched Records.
This error may be caused by missing Baseline Positions. (You should have 17296710’s Baseline Position on FY2011)
You can use the Import Baseline function or manually enter the Baseline one by one.
In this case, please make note of the Split Event, since if the Sell Stock is implemented after the Split Event, TradeMax will split it 1 to 10.
Whereas, if Sell Stock is before the Split Event, you must use the Move Up function to adjust 1251 and 1376’s sequence.
In this case, EEM has a “Div Event” on 2011-01-05 and has the Close/Long action on 2011-02-26, which implies there may be a Baseline Position error.Please check your Monthly Broker Statement.
Case 3 (F)
If you do not have enough stock, executing a Close action will cause an Unmatched Error.
In this case, 2400 shares were bought, whereas 2410 are to be sold, which is not possible. Hence TradeMax give you a warning.
Please check the trade history (Income reinvestment can help add 10 shares and thus avoid the error).
In this case , the Trade sequence is wrong. Sometimes, Brokers submit one day’s trade sequence without time ordering it and this will cause the problem.
If your Broker’s Trade History provides a Trade Time column, you can import it into TradeMax and it will automatically sort the sequence by the Trade Time.
Alternately, TradeMax allows you to adjust the sequence of the transaction records by moving up or moving down each transaction. (Select record and use the Move Down function to move it under record)
If you recieve a “Tolerance Warning” in TradeMax, Click the Tolerance Warning Records in theinformation bar andTradeMax Data gird will move automatically to the warning records
buy amount = qty* price +commission +fee
sale amount = qty*price – commission – fee
This warning implies that Quantitty, Price, Commission, Fee and Amount Datafields have some problems like a hidden fee not being listed in the trade data csv file.
This problem can be viewed in the warning records
TradeMax has a default tolerance value of 0.5.
In some cases, Microsoft Excel’s column number format might trigger this warning.(When you import excel file)
Consider this record #1505.
||BARCLAYS BANK IPATH NEW IPATH S&P 500 VIX SHORT
Excel displays the first two digits after the decimal point under default settings.
Similarly, If the actual price is 24.491 and TradeMax is set to use xls API to import the data by default, TradeMax will read the value as 24.50.
The number of places after the decimal point can be adjusted in the Excel “Price” column format which will change it to the first three digits after the decimal point.
Excel can format numbers any way required using the “Format Cell” feature. Select the cell with the number to be formatted and press CTRL+1 (or right mouse click > format cells) to go to the Number tab in the dialog box. Select “Number” category and change 2 digits to 3 digits. This will force Excel will show the correct value.
Once saved, the excel file can then be used to import correct datafields to TradeMax again.