Is it possible to live trade an IB model portfolio? That way someone (friends, family members, investment club, investment advisor, etc.) could trade multiple accounts via the IB model portfolio with only one single algorithm. The algo trades the model portfolio and IB automatically places trades in the actual accounts in order to match the model portfolio.
Here's some more info on IB's model portfolio feature: https://www.interactivebrokers.com/en/index.php?f=3354&ns=T
Graham
My understanding is that (unfortunately) you have to have your algo tied with each individual IB account.
So my understanding is that you can't really use IB's model portfolio feature with Quantopian algos.
It would be very nice if you could run your algo on one account, set it up as an "IB model portfolio," then have every other account follow it......but like I said, I don't believe that is possible.
Somebody please double check this and please tell me if I'm wrong.
Thanks for your response Jeff. That's kind of the way I assumed things worked too. Can anyone from Quantopian chime in with a definitive answer?
Hi Graham,
Jeff is correct. The way our IB trading integration works allows you to link one algo to one trading account. We don't support broadcasting trades out to sub-accounts. Part of the reason for this constraint is that the design of our integration is bidirectional, we send trades from your algo over to your IB account, and each minute we also check your IB account portfolio status and update your Quantopian live algo dashboard accordingly to keep the two in sync.
In order to trade the same algo against multiple accounts you need to duplicate that algo and link individually to each account in a 1-to-1 fashion.
Best, Jess
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.
Couldn't you just set up an 'advisor' account in IB and then link the auto-trade signals to this, and then anyone who is a 'sub account' of that advisor would auto-track the trades? IB has auto batch trading for advisor accounts, so if this account could be autotraded, seems like it could then be traded by IB for the others accounts? I haven't looked into this, but seems like it should be doable (might need some integration, I don't know). The model builder would then need to either a) register as an advisor or b) have under 10 accounts (or whatever the legal exemption is).
I am not an expert in IB's advisor account structure, but I can say that in my experience linking a Quantopian algo to an advisor account that ONLY broadcasts trades to subaccounts and doesn't actually hold a portfolio itself can result in un-expected behavior by your algo, specifically if it contains logic that depends on referencing account variables either directly like portfolio value, position symbols or sizes, fill prices, or indirectly for example via using order_target_percent.
My best advice would be to test this use case carefully and reach out to our support team directly at [email protected] to confirm your results before trading live.
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 Tom, as Jess said, I would be very concerned about "percent of equity used." For example, based on existing positions you may want to leave untouched, one of your accounts might want the algo applied to 100%, another only 10%, another only 33%, etc. So, while I would love to do what it is you're saying, I don't exactly understand how it would be possible/safe. Not saying you're wrong...I'm just not sure.
I guess it could possibly work if you had (for example) 100 sub-accounts that were all cash coming in that started following a 100% "percent equity used" algo??? Every account would be 100% invested in the algo.
I don't know how IB handles algo's in advisor accounts, so you'd need to research it. However, if you manually trade a position in an advisor account, they handle all this for you - for example, they will adjust the amount that should be traded for all the sub-accounts and then trade them all for you - and everyone gets a blended average of the fill prices. I would also say, that it should be doable on Quantopian's end, as other sites like Covestor are doing this. I haven't spent more than 1 minute thinking about it, and there may be big issues - I was just offering something that you could research. I would just call IB and talk to them about trading an algo in an advisor account structure to see if that's a work around.
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.
