Pair Trading Lab Helpdesk & Forum
PTL Trader => Questions & Answers => Topic started by: Anthony Sichi on February 21, 2014, 09:53:39 am
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What is the cooldown period for re-entry? Is that related to the PDT (Day Trading) protection?
Anthony
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Hello,
after a pair position is closed, it reaches the "cooldown" state for few minutes (I think 3 minutes) before it starts to process entry strategy again (and potentially open the position again). The reason is that immediately after closing the position, IB often reports positions in transient, inconsistent state for few seconds and this used to confuse the PTL Trader position management logic. So it waits few minutes to prevent this.
This also applies to users with PDT protection (daytrading disabled), because even with PDT protection you can still close your position and open it again (once) the same day, as this is not considered as PDT violation from the IB side.
It is funny, open-close is considered daytrading, close-open is not. I am not making these rules, US regulation offices do :)
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That makes sense.
Also, I did not know that rule about day trading ie. you can close a position and reopen it and that is not considered a day trade.
Anthony
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Yep, check examples here:
https://www.interactivebrokers.com/en/index.php?f=margin&p=daytrade2
On Thursday, customer buys 500 shares of YZZ stock. On Friday, customer sells 500 shares of YZZ stock. Later on Friday, customer buys 500 shares of YZZ stock. This is not considered to be a day trade.