Report on Broker's profitability on Algorithmic trading in general or on FX margin accounts?

Blonde

Blonde

Hiya,




Is there any report on Broker's profitability on Algorithmic trading in general or preferably on FX margin accounts? e.g. I want to know in IB, NinjaTrader(as broker), and IB trading by NinjaTrader8(as a platform) how many of the Algorithmic traders do have profitable accounts? If there isn't any general report around, is there any way to get an analysis of some of the available reports and conclude an approximate result on in what percentage the IB, NinjaTrader(as broker), and IB trading by NinjaTrader8(as a platform) Algorithmic trading accounts are profitable?

How can I find out which reputable broker like IB, the bank(bank or bank associated brokers like Merrill Lynch), etc has the highest percentage of profitable Algorithmic trading in general(any asset class) or highest percentage of profitable Algorithmic trading on FX margin accounts?


Tnx and best of luck
 
Blonde said:
Hiya @fan27



Thanks. I have seen this, but this isn't about algorithmic trading and I don't know if it's possible to get an understanding of algorithmic trading profitability in general or Algorithmic trading on FX accounts from this report?


Tnx and best of luck
More...

Nobody is going to get that granular.

FX has some of the absolute lowest levels of profitability for trading though.
 
Blonde said:
Is there any report on Broker's profitability on Algorithmic trading in general or preferably on FX margin accounts? e.g. I want to know in IB, NinjaTrader(as broker), and IB trading by NinjaTrader8(as a platform) how many of the Algorithmic traders do have profitable accounts? If there isn't any general report around, is there any way to get an analysis of some of the available reports and conclude an approximate result on in what percentage the IB, NinjaTrader(as broker), and IB trading by NinjaTrader8(as a platform) Algorithmic trading accounts are profitable?
More...
IB can not see whether you use a computer program to place your trades, or that you point your mouse and click to place a trade. To IB this is the same: a customer places a trade.
I do not know what you mean by "FX margin account". There is no FX-specific account at IB. You can request trading approval for multiple categories (e.g. stocks, bonds, futures, options, etc).
 
HobbyTrading said:
IB can not see whether you use a computer program to place your trades, or that you point your mouse and click to place a trade. To IB this is the same: a customer places a trade.
I do not know what you mean by "FX margin account". There is no FX-specific account at IB. You can request trading approval for multiple categories (e.g. stocks, bonds, futures, options, etc).
More...

I wouldn't say they "can't" see... the platform does log API calls. I wouldn't be surprised if they tag actions initiated via the API. I imagine some compliance and regulatory bodies expect brokers to know how their clients are trading during an investigation. It's not a big deal, at least, I really don't care if they track this.

Perhaps @def can chime in on the technicalities of it all.
 
HobbyTrading said:
IB can not see whether you use a computer program to place your trades, or that you point your mouse and click to place a trade. To IB this is the same: a customer places a trade.
I do not know what you mean by "FX margin account". There is no FX-specific account at IB. You can request trading approval for multiple categories (e.g. stocks, bonds, futures, options, etc).
More...


Hiya @HobbyTrading


Thanks. I see maybe IB does not offer on his portal about FX reports whether if the trade is done by API/Strategy or manually, but I think as the compliance consider this in tx calculation(I'd prefer if someone explain this) they may have internal access to detailed reports that are not available in our portal on IB.

I shall mention that there may be three categories of trades,
1- Manual
2- Automated strategy run inside the platform(Like NT8 strategies).
3- Automated strategies inside a native programming language(Like Java-based standalone trading application and strategy)
Thus they shall have a procedure to recognize these three categories from each other, while Cat-2&3 is API based, Cat-1 is not API based and it's pure manual.

Some brokers mess with the trades that are Algorithmic based and leave manual trades intact, thus the outcome of manul trading in brokers have higher profitability than automate strategies that they are much easier to mess up really in a way that regulator even can't figure out what happened to the trade in case of loss if you know what I mean? I wanted to analyze the IB data separately to be sure if the manual trading in leveraged FX has the same profitability as automated trading, in case they give out such a report or if it's possible to analyze the reports available and conclude on the possible outcome?

The "FX margin account" is in my term Leveraged FX account that we do Leveraged Forex trading. As it's possible to trade in the market without leverage(in case you have a big capital that you may not need to use leverage at all, as positions can be as small as possible to don't exercise any leverage). But I want to leverage as much as possible from a reputable broker like IB, as I personally believe the high leverage that other brokers offer is proof that they may be a MM broker(before EU reformation on the leverage this was the case, now after EU reformation on leverage, even MM brokers have 1:30 leverage like IB).

The more leverage, the more profit that an experienced trader can gain. And I do like 1:100 leverage but I think IB can't provide this? But again I prefer to stay with IB as its reputable broker.

You can request trading approval for multiple categories (e.g. stocks, bonds, futures, options, etc).
More...
I do like Futures after leveraged FX, but the Futures have lower leverage than FX in IB, and the rest of the financial markets have about 1:4/1:2 leverage, thus while I do like to trade them, but as IB does not have leverage, I may decide on another broker for rest of financial markets trading concept and only keep the leveraged FX with IB. Maybe another IB grade bank or broker that has higher leverage on the rest of the financial markets can be an option for non-FX trades?

Best of luck
 
Jack_Larkin said:
I wouldn't say they "can't" see... the platform does log API calls. I wouldn't be surprised if they tag actions initiated via the API. I imagine some compliance and regulatory bodies expect brokers to know how their clients are trading during an investigation. It's not a big deal, at least, I really don't care if they track this.

Perhaps @def can chime in on the technicalities of it all.
More...


Hiya @Jack_Larkin


Thanks. I had an account with different banks and they do have sophisticated reports in the trades and they do recognize the manual trading from Automated-strategy/algorithmic-trading as also this report was available on the client-side reports.

I know this is not the right sub-forum for this question, but as this concept of compliance comes up, I do have a question about keeping trading company tx-optimized and avoid unnecessarily tx burdon, how the compliance and local tx office and court/judge(in case we refer to court to solve the tx avoidance dispute between the local tx office and trading corporate in leveraged FX), thus this corporate tx is based on, e.g. in case of trading corporate and director and shareholder are in Dubai(resident ad citizens), EA/Robot runs on a server near to IB servers in the US, do corporate are subject to US state-corporate tx rate(depending on which state the EA/Robot is running)? And what is the best scheme to minimize the corporate tx and avoid it as much as possible? And how to practice avoiding the tx as much as possible in this tx minimization scheme overall?


Tnx and best of luck
 
Blonde said:
I shall mention that there may be three categories of trades,
1- Manual
2- Automated strategy run inside the platform(Like NT8 strategies).
3- Automated strategies inside a native programming language(Like Java-based standalone trading application and strategy)
Thus they shall have a procedure to recognize these three categories from each other, while Cat-2&3 is API based, Cat-1 is not API based and it's pure manual.
More...
There is also a fourth category: a customer can use automated trading and manual trading at the same time. In the past I have done item #1 and #3 in parallel via TWS.

About your comments related to FX leverage: you have received a reply from @def in your other thread. It is rather confusing if you discuss the same topic in multiple threads. It is better if you refrain from doing so.
 
HobbyTrading said:
There is also a fourth category: a customer can use automated trading and manual trading at the same time. In the past I have done item #1 and #3 in parallel via TWS.

About your comments related to FX leverage: you have received a reply from @def in your other thread. It is rather confusing if you discuss the same topic in multiple threads. It is better if you refrain from doing so.
More...


Hiya @HobbyTrading



If you are a professional profitable trader, how do you manage the margin while mixing trade #1-Manual and #3 -API-based_Automated-Strategy?

And what about your broker's compliance as to how they see your trades? And how do you do your trading annual tx filings? e.g. you made 100K manual trading and you made 100K by automated strategy EA/Robot that you run on a server on the US-based server, how this annual tx will be calculated?

My questions are sophisticated and not a single user can answer all of one question, thus if I break into new questions, it makes it bite-size for users with limited knowledge, otherwise, these questions may never get any answer or advice.


Tnx and best of luck
 
You must log in or register to reply here.
Back
Top