Handling Cash Flows

[blogle]

How do we handle when clients add money to our fund or conversely, withdraw. This needs to be handled in such a way that a client redemptions are not influencing performance reports. As if we simply subtract from the portfolio value, it will show as a substantial drop in our strategy not attributable to performance.

[blogle]

I think this is avoided simply by reconciling the account with IB periodically, then simply using the results in performance tracker vs the returns on cash_value or something similar.