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OmniVest User Forums User-Created Portfolios Strategy for Open/Close intraday trading		Last Activity 7/22/2015 8:11 AM 9 replies, 1199 viewings

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TomTwiford

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Subject : Strategy for Open/Close intraday trading
Posted : 7/28/2014 9:58 PM
Post #32260

Is there a possibility that a strategy could be developed that would buy an equity MOO, coupled with an order to sell such stock at near EOD?

If such a profitable strategy could be developed, it would allow for margin accounts in IB to expand use of margin equity from 200%, for present strategies holding overnight, to 400% (for intraday trading.)

Such strategies would essentially double market leverage, with overnight margin reduced to max 200% for all strategies without coupled MOO/ Exit at EOD.

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Jim Dean

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 5:04 AM
Post #32265 - In reply to #32260

Are you asking if it's possible to buy at the open and sell at the close on the same day? The answer is yes. It's referred to as "day-trading".

I think I must be missing something about what you are asking.

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Herm

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 7:20 AM
Post #32266 - In reply to #32265

I think he/she is asking about OV/TP coding scripts for day trading. I'm sure there are members that have been day trading with OV most likely manually at this point. It's possible OV will evolve in that direction in the future.

Herm

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Jim Dean

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 7:45 AM
Post #32267 - In reply to #32266

To do this in OVest, it would require a few enhancements, all of which are planned afaik:

1. Elite Trader - ability to upload custom OT strategy as an OV system
2. Intraday bar support for strategies - or implementation of MOC orders

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TomTwiford

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 9:41 AM
Post #32270 - In reply to #32267

Jim, yes I day trade manually using the same account that is traded by OV. While my account is fully(190%) margined for overnight trading, the account has an additional 200% intraday margin equity that goes unused by OV.

Without the need for OV to use intraday data, with the design of potentially profitable strategies that would place MOO orders,(just as is presently done) but also coupled with a MOC order, (to reduce margin at close to the required 200% or less) would allow an investor using OV to expand by 200% the use of his capital, as well as potentially significantly increase the CAR of his account.

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Jim Dean

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 10:00 AM
Post #32271 - In reply to #32270

Placing MOC orders using daily bars requires premature assessment of the bar a half our or so before the end of the day. That's easy in OT. Not so sure that the OV servers are timely enough for it, yet. But I'm confident that they will be eventually.

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TomTwiford

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 11:09 AM
Post #32272 - In reply to #32271

Jim, assessment of intraday bar activity would not be needed. The strategy, properly designed, would initiate trade based on prior data, and on a specific strategy setup, would enter mkt (L or S), hold the position for a intraday period of time and exit at some time during same day of entry, prior to close, or at a strategy directed time during the day.

Result would be to allow use of the additional margin capital (200% of equity) for trading the intraday strategy.

Requirements:
1. Strategy designed to enter mkt at open, hold for an intraday period up to closing, and exit during the day but prior to closing. (MOC or a specific time prior to close)
2. Trade processor would process entry order, as well as send an order for a timed, same day exit of the position.

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Jim Dean

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 11:31 AM
Post #32273 - In reply to #32272

Gotcha. Strategy designed for single-day hold. MOC exit based on trade plan. Possibly with intermediate Limit order profit or SM order loss exit on same day.

Needs Elite Trader so custom Strat can be uploaded. Needs support for additional order types.

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Don Salsman

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 11:50 AM
Post #32274 - In reply to #32273

Would it not also be effected by adding an option to the trade settings in the TP to "Close All Trades" at some specified time? It already is an option to close unmanaged and orphaned trades. If you right click on the Broker tab, there are other options to close trades as well, including close all trades.

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TomTwiford

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Subject : RE: Strategy for Open/Close intraday trading
Posted : 7/29/2014 11:56 AM
Post #32275 - In reply to #32273

Sorry I was not clear, but we are on the same page now. This type of strategy would allow use of a large amount of presently unused daily equity. To get started would at least need some type of exit order, MOC or timed, with strategy designed to exploit short term oversold or overbought situations based on prior data.

I trade intraday manually, using unused intraday equity, as many do, but would be great to allow OV to use this intraday capital, and improve even further the CAR on non-IRA account.

Concerning an additional post, I would NOT want to close ALL trades at EOD,
just those using strategies that use margin equity above 200%. All other positions, based on strategies holding overnight or longer positions, would not be closed. (These positions would be using margin equity of less than 200%, and can be held overnight)

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