Buckets in IB for multiple strategies

[kcgoogler]

Hello all,

As i am expanding with my derivative trading in ib, i want to create separate buckets for various strategies i am trading. Reporting is useful if possible on individual groups; but it makes it a lot easier when i have to do adjustments to various types of strategies.

Is there a way to do that in IB while still staying in only one account. Multiple accounts means i will loose some margin efficiencies (apart from market data cost - which is not really a concern).

So really i want to create subaccounts; also want my trades show up on the ladder on a per account basis.

ps: In tos, i used to create groups and move them but its not perfect too because on the ladder they are not distinguished.


Any pointers would be appreciated.


Regards!
-gariki

 

[rmorse]

gariki,

I can do master/sub accounts at Apex Clearing. The cash stays in the master account and the sub accounts are used to monitoring P&L per trader or per strategy. Margin is only calculated based on the net positions for ALL sub accounts combined, as you desire.

Unfortunately, we are not registered in Canada.

Bob

 

[xandman]

You probably need a Friends and Family account.

Btw, I think IB requires margins in excess of exchange minimums as opposed to some futures brokers who practically subsidize your margin.

Additionally, you might face yourself with some really stiff fees based on a risk level deemed by IBKR to be "high". I forgot what they call it.

Maybe an IBKR rep will chime in to correct me if necessary.

 

[volpunter]

rmorse,

Does your firm provide clearing and execution capabilities for futures products, only, or for cash equity as well? What about futures and cash equity exchanges in South East Asia (Malaysia, Thailand, Singapore, Indonesia, ...)?

Thanks

gariki,

I can do master/sub accounts at Apex Clearing. The cash stays in the master account and the sub accounts are used to monitoring P&L per trader or per strategy. Margin is only calculated based on the net positions for ALL sub accounts combined, as you desire.

Unfortunately, we are not registered in Canada.

Bob

 

[newwurldmn]

I do it in excel.

 

[kcgoogler]

@newwurldmn: i currently do it in excel as well (for the tos trades - which mirror my ib trading as well; so i use it as proxy). But i am looking at adding a couple more strategies to ib (since in tos i need to do 4x size for commission efficiency in canada), and am not comfortable tracking ib trades on a per trade basis (in excel). Worst case scenario i will probably have to do that.


@rmorse: i am currently only interested in somehow accomplishing this in ib - as i am kind of getting comfortable using ib and their margin rules as well. The interface is a bit cluncky for someone coming from tos but i am loving their reporting features.

@xandman: its not a concern for me right now xandman because i trade mostly options and the margin requirements suck on any platform - unless you have riskbased/portfolio margining. And its not even possible in canada; so for now thats out of the question.

I wonder if an IB rep can chime in and see how this is possible in IB.

 

[volpunter]

you can set up an F-type advisor account and create several groups to which you allocate sub-accounts. It also works with just one single sub account. If I am not mistaken then margin will be satisfied from the aggregate of all sub accounts regardless of which group you allocate trades to, but worthwhile checking with someone at IB. Chat with them, much better than asking here.

@newwurldmn: i currently do it in excel as well (for the tos trades - which mirror my ib trading as well; so i use it as proxy). But i am looking at adding a couple more strategies to ib (since in tos i need to do 4x size for commission efficiency in canada), and am not comfortable tracking ib trades on a per trade basis (in excel). Worst case scenario i will probably have to do that.


@rmorse: i am currently only interested in somehow accomplishing this in ib - as i am kind of getting comfortable using ib and their margin rules as well. The interface is a bit cluncky for someone coming from tos but i am loving their reporting features.

@xandman: its not a concern for me right now xandman because i trade mostly options and the margin requirements suck on any platform - unless you have riskbased/portfolio margining. And its not even possible in canada; so for now thats out of the question.

I wonder if an IB rep can chime in and see how this is possible in IB.

 

[kcgoogler]

you can set up an F-type account and group several sub accounts under that umbrella. If I am not mistaken then margin will be satisfied from the aggregate of all sub accounts, but worthwhile checking with someone at IB. Chat with them, much better than asking here.

Thanks volpunter. Agreed; i will chat with them.

First posted here as it sometimes opens to related discussions that might be useful.

 

[volpunter]

I just checked in my advisor account and added some additional info to my previous post. It should work as you desire.

Thanks volpunter. Agreed; i will chat with them.

First posted here as it sometimes opens to related discussions that might be useful.

 

[IB-AN]

As point of clarification, the advisor (or "F" type) account is intended to accommodate an arrangement whereby individuals provide discretionary trading authority to an advisor who, through his master account, pre-allocates and enters orders on behalf of those individual clients. As the client accounts typically represent distinct ownership interests, the is no pooling of assets across for purposes of margin (i.e., each individual client account must maintain equity in an amount sufficient to meet the margin requirement of their positions).

We do offer an account type which likely meets the requirements of the original poster, but which introduces other considerations that may or may not be desirable. It's a proprietary trading group account referred to as a Separate Trading Limit Account (STL). Similar to an advisor account, it consists of a master account and subaccounts referred to as service accounts. The purpose of the service accounts is to hold positions associated with a given strategy and/or a given trader. As positions and assets have common ownership, they are aggregated for purposes of determining compliance with maintenance margin requirements, although initial margin must be met at the individual service account level.

Other things you may want to be aware of:

- As this is an institutional account structure it is not available to individuals; your account would need to be formed as an organization.

- The minimum funding requirement is USD 10,000, or equivalent (in aggregate not for any service account or the master)

- The master and service level accounts are each subject to the monthly activity fee, although this fee is eligible for offset based upon commissions aggregated across all.

- As market data is subscribed to at a user level and each service account requires its own user, you may be subject to additional subscriptions and costs than you would in your existing account. Moreover, as this is an organization account you will be classified as a professional for market data subscription purposes which itself infers higher costs.

Below is a link to our website where you can find additional information on the STL account along with a detailed users guide. Should you have other questions, please contact our Professional Services Desk at 866-694-2757, menu option 3.

https://www.interactivebrokers.com/en/index.php?f=648