Order Management - futures io
futures io futures trading



Order Management


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one togier with 2 posts (0 thanks)
    2. looks_two Quick Summary with 1 posts (0 thanks)
    3. looks_3 revtrader with 1 posts (0 thanks)
    4. looks_4 bnichols with 1 posts (0 thanks)
    1. trending_up 2,961 views
    2. thumb_up 0 thanks given
    3. group 2 followers
    1. forum 4 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Order Management

(login for full post details)
  #1 (permalink)
Boston, MA
 
Experience: Advanced
Platform: NinjaTrader
Broker: IB
Trading: EUR/USD
 
Posts: 42 since Apr 2010
Thanks: 1 given, 3 received

I algo trade using NT and the algo that I use has 5 entry orders with a profit target for each entry order. Five in five out. However, I've come to realize that my commissions are really taking a bite out of my returns. Is there any way to enter with 1 large lot and scale out with 5 different smaller lots? 1 in 5 out? Thanks.

Started this thread Reply With Quote

Journal Challenge February 2021 results (so far):
Competing for $1500 in prizes from Topstep
looks_oneSBtrader82 's Trading Journalby SBtrader82
(151 thanks from 28 posts)
looks_twoJust BEING a Trader: Letting Go!!by iqgod
(106 thanks from 27 posts)
looks_3Wisdom is Emptinessby Mtype
(66 thanks from 24 posts)
looks_4Deetee’s DAX Trading Journal (time based)by Deetee
(31 thanks from 15 posts)
looks_5Journal for peanuts1956by peanuts1956
(23 thanks from 13 posts)
 
 
(login for full post details)
  #3 (permalink)
PA
 
Experience: Advanced
Platform: NT
 
revtrader's Avatar
 
Posts: 57 since Jul 2009
Thanks: 177 given, 43 received


If you are trading futures, I do not know any broker that offers the commission structure you want. The commission are based on 1/2 of the commission PER contract when you enter the trade and the other 1/2 of the commission PER contract when you exit the trade. So if you are trading 5 contracts - it will be 5 in and it will be 5 out. Many brokers will negotiate lower commissions based on the volume of contracts you trade on a monthly basis. However, if you find a broker that will accommodate your desired commission structure please let us know. I for one would be very interested if a broker would offer this structure.

I cannot comment on trading forex, options or stocks as I do not trade those markets.

Happy Trading.

Reply With Quote
 
(login for full post details)
  #4 (permalink)
Boston, MA
 
Experience: Advanced
Platform: NinjaTrader
Broker: IB
Trading: EUR/USD
 
Posts: 42 since Apr 2010
Thanks: 1 given, 3 received

I've now come to realize that what I want to do is accomplished through unmanaged orders. Once you turn your orders to unmanaged = true, then you can submit your orders the way you want. I trade forex and I have been submitting 5 entry orders so that I could attach 5 profit targets. However, given that I am placing 10 - 12 trades a day, the commission really eat into my profit. Now I just have to learn the nuances of unmanaged orders. Any help out there would be highly appreciated.

Started this thread Reply With Quote
 
(login for full post details)
  #5 (permalink)
Dartmouth NS
 
Experience: Intermediate
Platform: MC, MC.Net, NT, TWS
Broker: IB / IQFeed / Kids
Trading: Forex, stocks
 
bnichols's Avatar
 
Posts: 638 since Feb 2010
Thanks: 64 given, 460 received

If I understand the question correctly, with IB as far as I know there's no way to reduce the Forex commission by restructuring the trade since commission applies to what traders tend to consider execution quantity.

Whether you buy/sell 250,000 units all at once or in 5 installments of 50,000 units the commission is the same. In other words we pay at least minimum commission upon entering a trade and upon exit, no matter how we enter or exit.

Specifically, for monthly trade amounts < USD $1 billion, when IB states that commission is " (0.2 basis point) * (trade value) with a minimum of USD $2.50", the word "trade" in the phrase "trade value" refers to sale/purchase of the quote currency and purchase/sale of the base currency of a given currency pair and applies the commission to the transaction.

Therefore as far as I know there are only 2 ways to reduce the commission burden with IB; namely,

1. avoid entry / exit quantities less than 50,000 units (number of units corresponding to the $2.50 minimum commission)

2. trade more than $1 billion / month for the 25% discount, which depending on our circumstances may not be as much of a stretch as it might seem. In concrete terms this amounts more or less to moving an average 50 million units a day, or 25-50 executions involving 1 - 2 million units each. In terms of in/out currency day trades this means 13 trades of 2 million units each or 26 trades of 1 million units each, which even with IB's relatively low leverage ought to be accessible to an experienced, active retail trader with a $50,000 account.

Visit my futures io Trade Journal Reply With Quote


futures io Trading Community Traders Hideout > Order Management


Last Updated on April 10, 2011


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1500 prizes from Topstep!

February
 

Identifying Setups & Targets Using Profile Charts w/Trevor & Tradovate

Feb 25
 

Battlestations! Show us your trading desk - $1,500 in prizes!

March
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts