Hi,
My live algo just got stopped because of a potential pattern day trade.
Here are the choices I need to do:
1) Increase my account to over $ 25'000 .
2) Trade with Quantconnect as they support CFD.
3) Change my algo to keep position overnight.
As I can't increase my account yet, I don't have time to learn C# and I like my algo. Is there any other choices I can make ?
Thanks
Chris
Potential pattern day trade -- that's interesting. The pattern day trading rule is actually enforced on the broker level; I'd recommend asking your broker about this feature. Perhaps you can tweak your algo a bit so it will run, after learning some specifics about the rules from your broker.
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.
Hi Nathan,
My algo takes position at the open and close that position before the market close and this is why it has been flagged as a day trading account.
Official definition:
FINRA and the NYSE define a Pattern Day Trader (PDT) as one who effects four or more day trades (same day opening and closing of a given equity security ("stock") or equity option) within a five business day period.
More info for those who are interested:
https://www.interactivebrokers.com/en/index.php?f=4745&p=daytrade1
Chris
I know this thread is a few months old, but I'd like to add that I have Robinhood Instant and I'm running into the exact same issues. What I have decided to do is alter my program to allow the purchase and sale of a single security in a single trading day, but restricted any further transactions until the 5 day waiting period has past. My trading strategy requires the ability to sell a security the same day it was bought, so It will execute trades similarly to the following example:
Monday - BUY & SELL SPY
Tuesday - BUY & SELL AAPL
Wednesday - BUY & SELL F
Thursday - Buffer... no trading - 3 day trades in the last 3 days
Friday - Buffer... no trading - 3 day trades in the last 4 days
---Following Week---
Monday - Buffer... no trading - 3 day trades in the last 5 days
Tuesday - BUY & SELL CAPN - because there were only 2 day trade in the last 5 days
Wednesday - BUY & SELL ALPH - because there were only 2 day trade in the last 5 days
Thursday - BUY & SELL TRA - because there were only 2 day trade in the last 5 days
Friday - Buffer... no trading - 3 day trades in the last 3 days
Maybe the OP has figured this out in the intervening months, but for reference, if one is live trading with an Interactive Brokers account, Quantopian appears to offer the context.account.day_trades_remaining method to see how many day trades are left. This is currently unavailable for Robinhood. I imagine one could condition trades on an if statement incorporating this information, although I have not tested this personally.
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.
In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.
