Basic Search

Basic Search

Basic Site Search

 

 

 

We speak
 

 Contact me for Custom work
or One on One Platform Instruction 

follow me on: 


Monday
Apr012013

But I don't want to Day-Trade

Before you start trading live with any robotic system or even a manual trading platform, you should know that the SEC places limits on accounts under $25,000.  
One of these is to limit the number of "Day Trades" to four trades bought and sold on the same day, in a five day period. 
 
Prodigio does not have any direct way to control the number of day trades but there are a number of ways to keep it under control.
 
Number of Positions:
One way is to limit the number of positions you buy to one or two and strive to not exit them on the same day unless really necessary.  If you get close to the day trade limit just disable Auto Trading and don't buy any new position until you have more days built up again.  If you set your Max Number of Trades/Positions in Settings so that the number of trades is set to no more then the number of day trades you have left.  You could increase the number of position each day in your settings by the number of day trades you have available. As long as you never buy more positions in a day then you have left in available Day Trades, then you should be able to keep control and never exceed the limit and trespass into the Pattern Day-Trader realm.  But also remember to reduce the number of Trades/Positions in settings when you sell positions.  The idea is to never be able to buy more postions then you have Day Trades avavaible.
 
Using rules to stay in control:
Well Prodigio doesn't yet have a way to actually know when we enter a position, this is something that the Prodigio team has said we will be getting soon but until then there are still a number of ways to control exits using rules.  
 
 
Slow it down:
If you stay away from fast charts in your decision tree of rules, or at least make sure that you have a longer time frame rule that is a condition of both your Buy and Exit rules then you can control how long a trade lasts before it is sold.  Even a simple Daily OHLC could be used as the control.
 
  
By using a Daily rule as a condition of your Buy signal and using the inverse of that signal as a condition of the exit.
 
 
It should be impossible for the position to exit on the same day as you entered the position.  Since the daily bar doesn't change until the close, the exit rule could not possibly be true until the next day.  
     Note: An exception to this could possibly occur if you have the Forming Bar turned "ON"
 
Subscribers continue to page 2
 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.
Member Account Required
You must have a member account on this website in order to post comments. Log in to your account to enable posting.
« Give away Amazons Cash! (and they won't mind) | Mind the Gap! part 1 »