Position Size Limits Broker Transmit vs Auto Trade

C2
1

I know there are position size limits for futures enforced by C2. If I run a futures strategy with BrokerTransmit and I try to open a position that would go over the limit would C2 just record a part of the position.

For example, if I were to open 10 contracts and the limit was 5, would subscribers simply see it as though 5 contracts were opened?

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2

I believe the entire order would be rejected.

3

As in I wouldn’t be able to enter it in Interactive Brokers or C2 wouldn’t relay the order or show it as a part of the system? I am assuming you are saying that it wouldn’t appear on C2, but that I would still be able to enter it at IB and get it filled. Is that what you are saying?

4

thats how id interpret it. C2 has no control over your actual orders and fills. itd be the subscribers order that they could control (i.e. allow or not allow a future trade)

5

Correct. The order would be filled in your personal IB account, but would be rejected by C2 before it got transmitted to your strategy, and thus to your subscribers.

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6

Thank you. Do you think it’s possible that C2 would at some point make a scaling factor that could be used for broker transmit?

For example, if I bought 10 contracts in my IB account and had a “broker transmit scaling factor” of 50% then only 5 contracts would be considered as a part of the C2 strategy.

Basically the same concept as AutoTrade scaling factor. I would like to have that if it’s possible. That way trade leaders that want to withdraw or add money to their trading account without causing a problem for subscribers can do so.

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7

ive emailed C2 about this. why is this scaling feature not implemented on brokertransmit already? It would solve this position limit issue or at least help managers have more room to continue trading their strategy on C2

So for example, if I’m a TOS manager, i put up my first trade @ 5 contracts

you can have couple of scaling settings:

  1. % scale - ex 50% would put out 2 contracts on the c2 signals
  2. fixed contract - ex 1 contract would always put 1 contract for every signal from the TOS account