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Has anyone figured out how to select a specific smart routing algorithm such as SMART MaxFill using the TWS API? Using contract.exchange="SMART MaxFill" instead of "SMART" prints an error at run time. I`m using REL orders to add liquidity, with a one cancels the other STP order to take...

Here are my results using unbundled pricing and relative orders. The 0.0037 per share orders are a bit weird, I thought I would be charged 0.006 or so for removing liquidity. UYG: 0.0012 per share 0.0037 per share 0.0037 per share Average comission 0.00288 per share FAS: 0.0037...

Bolimomo, chances are we`ve exchanged a few shares ;) I just added support for relative orders to my system and that seemed to work well with the 5-20 cent spreads on SKF, I`ll be interested to see if I get any quick fills on the low dollar ETFs using a relative offset of 0, the rebate for...

That was the problem I ran into, plus you needed a lot of them for the low dollar stocks, which racks up the commissions, and cancellation fees if you try to haggle with the market maker. And funnily enough the market maker isn't as willing to meet you in the middle 60 seconds before the...

I close out my trades at the end of the day, but if I wanted to hold for a few days to a few weeks, shorting a double short ETF is something I would look at due to how they under perform on a longer term basis. I would definitely not go long an ultra long ETF for too long, IYSWIM.

I ruled out the Ultra Long ETFs because last time I looked they were around a dollar, where per share commissions and spreads ruin things, but FAS is above $5 today, so if I change the system to go long FAS instead of short FAZ it should work until FAZ is shortable again, thanks!

I wrote an automated trading system, and have been trading it live for about 6 months. It works significantly better on the 2x and now 3x ETFs, more than 2x or 3x better than the underlying. The problem is my broker, IB, has no shares of the ETFs I trade available to short this week, so after...

I understand my risk is going to be higher, but I also know that my risk is going to directly depend on which method I choose, which is why I`m evaluating all the tools at my disposal.

I want a long term buy and hold style portfolio that is leveraged as much as possible, with a little risk as possible. Yes, I want my cake, and I want to eat it too :) Ideas so far for achieving this goal: - Rolling ITM LEAP calls for minimum interest expense but only around 5x leverage -...

Serious question, not trying to be rude, but do you have an actual real life analysis of the differences? With portfolio margin being so new, I was not able to come up with much, I figured I`d have to do the calculations myself. My concern with a portfolio that consists solely of calls is...

That's what I thought, it was really bugging me that I couldn't see a flaw in my idea. Moving on, this portfolio margin system is really interesting. For example: Start with $500,000 Buy 400 DIA 120 puts. Buy 40000 shares of DIA Pay 6.5% interest on only $444355 margin...

I need to rethink this idea then ;) Next idea is to model purchasing the underlying stock using portfolio margin vs purchasing options (I only recently discovered portfolio margin). I`d be paying margin costs on a portion of the stock position, but this would be offset by the dividends...

Exactly, but how can I get close to the same kind of behavior with regular LEAP options?

Found real pricing for SPX chains at optionsxpress. That isn't going to work, is it ;) Back to LEAPs, is it possible to buy a 200-150 put spread in a way that reduces my chances of being exercised? Would I be better off trading the legs separately rather than as a spread?

But on the subject of bull put spreads, I`m using IB's demo system to obtain pricing. I`m not sure where it is getting the prices from, but presumably these prices were available at some point. Buy SPX Dec 2009 1500 put for 130 Sell 2000 put for 588 Credit received: 45800 Value at...

Thank you both for clarifying! My goal is to simulate a buy and hold stock portfolio using options to increase my leverage, while keeping my risk to tolerable levels. If I buy and hold a deep in the money call for one year, I will have paid less in time value than if I had bought an ATM...

I`d like to clarify a few of the finer points of Bull Put Spreads. I am a beginner, so please go easy ;) My account is with IB. Starting with just cash in my account, say I buy a XYZ 100 put and sell a 110 put. I receive say $900 credit, and have a margin requirement of $1000. Do I earn...