Author Topic: Engine Status: entry: cooldown  (Read 2215 times)

Anthony Sichi

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Engine Status: entry: cooldown
« on: February 21, 2014, 09:53:39 am »
What is the cooldown period for re-entry?  Is that related to the PDT (Day Trading) protection?

Anthony

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Re: Engine Status: entry: cooldown
« Reply #1 on: February 21, 2014, 12:24:39 pm »
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 :)

Anthony Sichi

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Re: Engine Status: entry: cooldown
« Reply #2 on: February 21, 2014, 03:52:47 pm »
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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Re: Engine Status: entry: cooldown
« Reply #3 on: February 24, 2014, 05:35:05 am »
Yep, check examples here:

https://www.interactivebrokers.com/en/index.php?f=margin&p=daytrade2

Quote
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.