[#REF!McGrath]

general advice only

[#REF!McGrath]

For those with a cash account using market orders i had 3 trades rejected on NYSE because I had exceeded the 5% buffer. This is for a monthly momentum system on the Russell 1000.

For those of you who have a cash account do you use market orders or another order type to gets fills but not exceed the buffer? The other way I suppose is I just put some extra cash in the account & just have it sit there to cover the buffer.

From IB website:
FAQ: My Cash account has plenty of cash – why is my MKT order rejected?

A Cash account must have enough cash to cover the cost of a position plus commissions and can never hold a negative cash balance. When placing a Market order (or Stop order), the order value cannot be known with certainty prior to execution as the market can move in any direction at any moment. Because of this, an extra 5% is added to the order amount at the credit check step for Market type orders to account for market movements. If you receive an order rejection for not enough Settled Cash when you do in fact have the Settled Cash to execute your order at your desired price and quantity, try using a Limit order (or Stop Limit order for a Stop) or reduce the MKT order size.

[#REF!McGrath]

June 19

ASX Growth 3.0%

[#REF!McGrath]

May 19

ASX Growth -0.95%
R1000 Mom 0.71%

[#REF!McGrath]

thanks that worked. got a fill last night.

[#REF!McGrath]

Hi Glen/Nick

When I used the API last night as a test I got the following error message “Error ID: 6 Error Code: 354 Error Message: You are trying to submit an order without having market data for this instrument.IB strongly recommends against this kind of blind trading which may result in erroneous or unexpected trades.Restriction is specified in Precautionary Settings of Global Configuration/Presets.” Is this just a warning message not an error?

After I send the order from the API & I go into TWS in the API tab the order is sitting there but with the blue Transmit button (do I need to hit transmit in TWS – I thought the orders were placed automatically?)

After 23.31 has passed the order is still sitting in TWS. The API is connected to TWS & TWS is not shutdown. Not sure why the order is not executing maybe I’ve missed something in the settings.

Any ideas?

[#REF!McGrath]

I have had some further correspondence with IB on this topic:

“Please be advised that your SMSF account is under our Australian entity. The free riding rule is not applicable to the Australian entity. Hence, that rule is not applicable to your SMSF account with us.”

“So can I sell and use those proceeds for a buy order (once the sell order has executed) on the same day? This is what I was advised previously.”

“Yes, you can. You can use unsettled cash to open new position.”
IBKR Client Services

[#REF!McGrath]

Excellent. Much appreciated.

[#REF!McGrath]

Hi Glen

Thanks for the suggestion for the added feature of the API. This will also help me with a similar situation I have been facing with my US momentum system as I have a cash account.

Can I ask how did you test that the orders were placed as expected. (sorry I’m new to API’s)

[#REF!McGrath]

Nick, did you take a look at Open Markets? if so what were your thoughts.

I use my work super fund which has a self invest facility which I use for the Growth Portfolio. However their brokerage rates have increased such that they are charging brokerage $29.50 (order value up to $10,000) & $46.50 (order value $10,000 to $27,500).

I now have to option to move funds from my work super fund into my SMSF so was also looking at Macquarie.

[#REF!McGrath]

For those of you that operate monthly rotational systems on a cash account how do you deal with your buy & sell orders.

Assume you have 5 buys & then 5 sells & your account is fully allocated. When i went to place the orders for the monthly rotation IB restricted me from placing the buys at the same time (ie I could not transmit the orders as no available cash at the time). So I then waited until the market opened & the sell orders were executed & then I was able to execute the buy orders with those proceeds.

So long as not selling the securities that have been bought before the sells settle then I thought this is not a violation of the free riding rule. Is this correct or do I need to wait for settlement of the sell orders before I can place the buys orders? This is not how my system was tested & I don’t think there is a delay settlement function for rotational systems.

Have others experienced this problem & if so how do you deal with it?

[#REF!McGrath]

I have a US momentum system that I have been trading with a small allocation now for 3 months. I am ready to allocate the full allocation to this system. I currently have 10 open positions. I’m not sure how to scale up to the full allocation given the current open positions. Was thinking:

1. Wait for index filter to switch off all current positions & then use full allocation (however don’t know when that will happen)
2. As stocks rotate off the list & replaced with new buys, those new buys are given the larger allocation.
3. Close all open positions & just start a fresh from next month.

[#REF!McGrath]

can I check that the trading P&L column should include unrealised gains/losses for the month. In STT it calculates on realised gains/losses. So to get the realised & unrealised P&L do I need to calculate the portfolio value at the end of the month & compare to the previous month?

[#REF!McGrath]

Just following on from the above post for AUD cash a/c buying US stocks I received the following advice from IB:

“Please know that due to ASIC regulatory restriction, IB LLC is not able to offer Australia clients FX conversion that will increase exposure in currencies that are not AUD. This means that you will not be able to convert from AUD into USD.

Having said that, you are still able to trade US securities and any debit cash balances will be converted as you have a cash account. Selling US securities will leave the proceeds in its denominated currency. For example:if you bought AAPL shares, we will automatically liquidate AUD into USD on your behalf as the purchase creates a debit cash in USD. When you sell AAPL shares, the proceeds will remain in USD.

to convert USD back into AUD, you will need to place a BUY trade. If you are using TWS, you can simply search for AUD.USD on your watchlist, right click and select Trade > Order entry > BUY > quantity is the equivalent of the AUD value.

Alternatively, you may also perform this conversion via TWS > Account > Account Window > Under “Market Value – Real FX Balance”, right click on USD and select “Close Currency Balance” > Select Variables and transmit order.”

[#REF!McGrath]

I’m curious as to how anyone with a SMSF who is trading US stocks is hedging their US exposure & which broker/method you are using to facilitate this?

I’ve been looking at IG who offer multi-currency balances for Share Trading accounts. They also offer FX CFD’s for SMSF which is what you would use for the hedge.

Does anyone have experience using IG for this purpose?

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