Interactive Brokers - How to handle orders on reversals

[Spiderbird]

Hi all,

This might not be the right place to post this. Apologies in advance if that's the case.

I'm putting the fInishing touches on an automated strategy that sends two seperate orders on trade reversals. For example, if I'm long SPY 50 shares and my stop price is hit, my strategy sends one order to close the existing trade, waits till that order is filled, and then places a second order to short SPY for 50 shares at market.

I originally coded my strategy this way to ensure proper order fills and market management at the cost of multiple broker fees (one for entry, one for exit).

However, could the above be achieved by simply sending a 100 share SPY short order to IB? It would, in theory, sell the existing 50 share SPY order, and leave the remaining 50 shares in the order for shorting.

Outside of Ninjatrader, this can be done in IB, and I *believe* the above example (selling 100 shares short) results in a single transaction fee in IB.

Can anyone at NT or another forum poster confirm this?
Thanks in advance as always for your time!

- SpIder

[NinjaTrader_AdamP]

Spiderbird,

This wouldn't be possible with the managed approach, however you might be able to do so with the unmanaged approach.

http://www.ninjatrader.com/support/h...d_approach.htm

[Spiderbird]

Hi Adam,

I forgot to mention in my original post that I'm currently using an unmanaged approach to send orders to IB. What I'm trying to do is confirm that the scenario I described in my original post was possible (i.e. has anyone had experience doing this).

The only other example I've seen of it being done is referenced on another website:
http://www.onestepremoved.com/category/ninjatrader/

[NinjaTrader_AdamP]

Spiderbird,

Yes, this appears to verify it is possible. I would assume so as well just judging by what I know of the unmanaged approach. You should be able to test it with the SIM101 account with commissions.

[Spiderbird]

Hi Adam,

Yep, I've tried this in the Sim101 environment, and am going to test drive it tomorrow in the AM on the market open. Thanks for your input!

- Spider

[NinjaTrader_Bertrand]

Should be working as intendend Spider, at least from your reading your implementation in unmanaged. Please let us know should you see any issues and a good start into the week.