- ago
Today I had a constellation within my limit-system whitch I think is an error.
I had 4 limit orders filled and 1 active (and alredy routed to IB). Then another limit was triggered but only PartialFilled - this was the fifth Position (my maximum as specified in the Trading Thresholds).
Problem:
1. The Counter for filled Entries still was '4'
2. The remaining active Order wasn't cancelled in the Order Manager and even not in the IB Account. So if this limit would have been hit, there would have been 6 Positions in the IB account
In my point of view the PartialFilled Order should bring the Counter for Filled Entries to 5 so that all pending Orders would have been cancelled.
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Cone8
 ( 27.64% )
- ago
#1
Then it wouldn't be the number "Entry Orders Filled".
Everyone's going to have their own opinion about edge cases like this one.
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- ago
#2
I've been trading a dip buyer for several weeks. I haven't had the problem mentioned here yet - but it is indeed a problem.

Because with a position sizing with n percent of equity, the maximum number of trades must not be exceeded. In this case, a partial execution counts as one trade - regardless of whether the desired position size has been reached or not.

Suggestion: would it not be conceivable to install an additional check box (at preferences/thresholds) that looks something like this: "count a partial execution as a full trade" (yes/no)?

That would be a solution that covers all posible cases and everyone can decide how it is used. Because if (worst case) you only buy 99 shares instead of 100 and this does not count as a full trade and the slot remains free, this is not good at all.
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- ago
#3
I'd say considering partial fills may be quite error prone, don't you think so?
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- ago
#4
how else could you solve the problem described above? The way it works now, I think it leads to massive problems as well, right?
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Cone8
 ( 27.64% )
- ago
#5
Here's the main Point - Thresholds are only a tool that can help stop trading when one is detected.
Thresholds will not prevent your account from exceeding them.

If you're account is so sensitive that you cannot exceed a threshold, then you probably shouldn't be trading that account, or, you should give your thresholds more leeway. For example, if you can only hold 5 positions, make 4 trades the maximum instead. Even so, it's still possible 10 other trades trigger precisely at the same time.

QUOTE:
I think it leads to massive problems as well, right?
Let's go into these massive problems. Like what exactly?
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