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First off, this IS possible, under certain conditions. @syswizard says "you cannot trade the same instrument (QQQ) with two separate trading systems in the same account." This is not entirely true. I will explain below.
Second, @OccamsRazorTrader makes the point that trading 2 strategies "could throw the program into a weird loop??" If things are set up correctly, this will not happen. If you do it incorrectly, you can indeed "throw things into loop." I once did this, and was responsible for 25% of MES volume because of it (trading with myself!).
When done correctly, you can trade 2,3 or 10 strategies with the same instrument. The equity curves will all add together. And if the strategies are uncorrelated, the combined effect is a smoother equity curve - since profits for all the strategies are additive, but the drawdowns are not.
So, how do you do it?
With stocks like QQQQ, in Tradestation you cannot automate strategy A in Chart 1, and strategy B in chart 2. I don't know if this is a Tradestation limitation or an exchange limitation.
With futures like NQ, in Tradestation you CAN automate strategy A in Chart 1, and strategy B in chart 2. This works really well in Tradestation 10.0, not as well in Tradestation 9.5 and earlier.
So, with futures it is relatively easy. I do it all the time without a hitch. With stocks though, there are at least 3 alternatives for trading QQQQ simultaneously in Tradestation :
1. You can use order tickets and order providers to trade as many strategies as you want. This is advanced Tradestation stuff (called Object Oriented Easy Language). I can put you in touch with a programmer who is really good at this, and has done work for me.
2. You can use something called "Global Variables" in Tradestation, which allows strategies to "talk" to each other. So, you'd have 3 charts: Chart 1 would trade Strategy A, chart 2 would trade strategy B and chart 3 would "take" to 1 and 2, figure out the net position and trade the net. Chart 3 would be the only chart automated. I have used this approach, and it is generally pretty good, but not 100% foolproof. It will take time and effort on your part to learn how it works, and then to actually work it and maintain it.
3. There are other possible alternatives, but to avoid self promotion I can't post the link to the article I wrote (on my website). For example, you may be able to combine the code for 2 strategies into one "master" strategy. The efficacy of this is HIGHLY dependent on the core strategies though. And there are other possible workarounds, too.
There really is no need to segregate into long account and short account (although psychological benefit might help you - being long/short and flat are psychologically the same for me), and actually being long and short will eventually lead to compliance questions from your broker. They will think you are trading against yourself, which violates exchange rules. I had to explain my trading to the CFO and CCO of Tradestation to get them to allow what I was doing. But then they upgraded their software, and I did not need to do separate accounts.
It was more a way to see if the fast or slow system was doing better at any given time, being flat a position while being the same portfolio wise- was different system wise.
I'd chalk that up to just another of the misgivings I have with Tradestation, starting with their crappy customer support ..... (Waited 2 weeks for a call back- and finally received an e-mail saying they tried to call me, they didn't, they just didn't have the balls to confront me with a phone call!)
TradeStation sucks- I've had issues in the past but yesterday was the worse experience ever. Obviously during days of increased volatility you really need a broker you can trust- TradeStation is NOT that broker. I place orders for the following day …
You should have been able to see performance of each strategy by looking at the Strategy Performance report, that is what I do.
For Tradestation support, post the question here or at the Tradestation forum. That is what I do. I haven't called a Customer Service person at TS in years, and I am doing just fine with the platform.
Yes Kevin, I would like to contact the programmer for help with this. Please let me know if you can post the information here, or I have to PM you. Thank you very much.
It was a trade issue that started at the trade desk but was escalated to customer service, as I laid out in the attached post. With that in mind, I feel more secure having an API programmed to trade an algorithmic strategy on IB. I have done this in the past, and while more difficult, will lead to more confidence going forward. But I appreciate your advice.
I had a previous post about the obsession with trading fees, dominent with older traders that were used to $120 round turn trades, placed by phone btw. In any other industry margins are low because expenses are high. In trading we're all looking for a 2 to 1 return on winning trades/ losing trades to cover the cost of commissions (+ exch fees). My system, live account, real trades, has placed over 5,000 trades this year with an average cost of ~$36 a trade (commission + fees + slippage). My profit is slightly less then the total trade cost, so we're looking at a net margin of ~48%, in the restaurant business they would kill for a 48% margin, net margin in a Dunkin Donuts franchise is ~17%.
Would I rather my system place less trades? Of course, but as long as the system is profitable, and stays that way I'm fine with it. A discussion with my son lead to the theory, that I could get my trade cost to zero- by placing NO trades and NOT trading my system. Some in the industry would scoff at these results (and my system), but it is what it is, and I'm OK with it .....
I track the % of commish+fees of the gross profit.
As soon as the % hits 50%, it's time to disable trading for that instrument.
You've got to do this intelligently...i.e.require a minimum # of trades, etc.
My system is an absolute return system. I've tried equity curve trading for each market and also for the combined portfolio, I've attempted to filter trades based on 10 or so different factors, I've tried standing on the sidelines during the beginning of a draw down .......... each time it results in less gross, yes less cost, but in the end ..... less net.
It feels like throwing the baby out with the bath water.
I've resolved to trade it as is, or develop something else. My returns are outrageous (November +13%, +81.83% ytd), and yes so are the resulting expenses .... but it is what it is!
Again comparing the margin of my daily system to any other industry it's a no brainer, but financial services seems to be a different beast. I do track the trade cost per instrument (market), and will add and ongoing trade cost as a percent of gross for each market to the spreadsheet for 2023. (Not sure what the minimum trade # would be, I'd probably have to commit to the first 3 months of trading minimum.) Commissions and fess are not the problem - slippage is the bigger number, and I'd have to use the average for 2022 until I have enough data in 2023.
Average trade costs skyrocket in drawdowns then temper in the up phase- like all systems.
But I've committed to the system and it is what it is ..........
