Upcoming AutoTrading Changes

C2
1

Over the next few days we are rolling out a change in the way C2 AutoTrading works.

We will no longer support “manually-opened positions” in the same broker account as C2 AutoTrading. To say it another way, your broker account will need to be 100% dedicated to C2 AutoTrading. You can no longer use your broker software platform to open some positions manually (for example, by using Interactive Brokers TWS to open a position) while also AutoTrading C2 strategies in the same account.

The change will be immediate for all new AutoTrade accounts. Current AutoTraders now using the “Allow Manual Trading” feature will be able to continue using this feature until they stop AutoTrading their strategies or stop/restart trading.

What this change means

To be clear, you will still be able to “adjust” AutoTrade-created positions through the use of the Collective2 web site. Things like setting your own customize stop losses, increasing or decreasing AutoTrade positions, closing AutoTrade positions early, etc., are features that we are proud of, and which will not change.

What is changing – and what will no longer be available – is the ability to AutoTrade Strategy X while, at the same time, doing your own discretionary trading on the side… in the same account.

What if I want to continue placing my own discretionary trades?

Of course you can. Obviously, we are not telling you to stop your own trading. :slight_smile: If you want to continue managing your own discretionary trades while also enjoying C2 AutoTrade, you’ll need to open a separate account for manual trading (or a separate account for C2 AutoTrading).

Fortunately, for many brokers, once you have already opened one account, the process of opening a second account is very simple and “paper-work light.” For example, Interactive Brokers allows you to open what is called a “linked account.” Instructions for how to open a second IB account are here.

Why are we making this change?

We worked hard to be able to support manual-positions-side-by-side-with-AutoTrading-in-one-account. It was, perhaps, our “most requested” AutoTrade feature. So it’s with some sadness that we are turning it off. The reason is that it was never quite as simple and easy-to-understand as we hoped.

While removing this feature makes the start-up of AutoTrading a bit more difficult for new members (a completely separate, virginal, AutoTrade account is required), we think it makes the AutoTrade process – once begun – much simpler, more pleasant, and more reliable.

If you need help opening a second account for AutoTrading, please contact us at help@collective2.com. If you’re a customer of IB, you can go directly to this link:

https://collective2.com/additional-account-ib

  • Matthew
3

What if you’re one of the “current Autotraders” and you keep your current strategies and also add a new one? Then can you still keep manual trading open?

4

Matthew, I saw on the Forum a while ago that you were going to change the pricing for autotrading in 2017 to allow subscribers and system developers who are only autotrading one or two strategies to pay a reduced monthly amount, rather than the current $99 each month, no matter how many strategies you are autotrading.

Is that something that will be done soon?

Thanks! Jim

1 Like
6

What if you’re one of the “current Autotraders” and you keep your current strategies and also add a new one? Then can you still keep manual trading open?

7

Nothing will change until you turn off your final strategy in your broker account.

If you are currently using the “Allow Manual Trading” feature, and you add a new strategy to your AutoTrade broker account, the feature will continue to be available to you.

When you stop AutoTrading altogether (and then perhaps decide to start again, sometime later) the feature is no longer available.

1 Like
8

For new users. if someone turns off a strategy and leaves the positioins open. now it’s consider manual, will they be able to close those positions at a later time through the IB software?

also if they turn back on the strategy, is there a way to assign those open positions back to the strategy?

1 Like
9

Can you be more specific about this? What problems did you experience or what problems did users complain about? Maybe there is another way to solve these problem.

It is indeed relatively easy to open a linked account at IB, but for margin calculation purposes it is a separate account. E.g. I have PM at IB that is not carried over to linked accounts. So my leverage would be quite different. Even with regular margin, my manually traded equities may serve as margin to my C2 trades as long as they are in the same account.

I have the impression that with this and with the recently introduced 500% max scaling you are re-positioning your business model. I just don’t quite understand the direction. Can you please elaborate?

Thanks,

Joseph

While at it (call me paranoid): how committed are you to keep e-mail signals and API available? Is it conceivable that they are next on the chopping board? Maybe they overload your servers? Or it is not secure?

3 Likes
10

As pointed by others above this will reduce buying power and flexibility, especially for subscribers who follow system/s that don’t trade frequently. Almost all of my trading is done by running automated Multicharts strategies that obviously cannot be managed by your web interface.

Having said that, if your technology can’t manage it without issues, by all means this is a necessary step.

And while you’re improving things to be more clear and tidy, consider again to send your orders as native OCA/OCO on broker side. I would never keep two pending orders unattended with any meaningful amounts if they are not grouped as OCA on broker’s servers.

Not supported by all brokers? Ok, start with C2’s preferred broker.

11

I agree with the sentiments below, the main issue is that slower trading manual equity systems could provide collateral for faster moving automated strategies to trade with. Removing the manual positions to a separate account means you need to reduce the exposure to the automated strategies, reducing profits. However, I have personally lost about $500 through auto-trade issues caused specifically by having manual trading open in our account. Very rare instances where Collective did not talk well with IB and ‘orphan positions’ were created. These normally would have been flushed out by auto-sync, but the computer thought they were manual positions and we incurred quite significant losses in the end. I’m also sad about the end of manual trading (and I take my hat off to Collective for the ingenuity to get it working so far), but understand Collectives reasoning in this case. I agree with the comments below - for small accounts (e.g. I only have $50,000 total) can we pay less than $100 per month. Should someone with $50,000 pay as much as someone with $500,000? Thanks! Greg

1 Like
12

Will this change result in the Auto system interfering in other trades when you are subscribed to multiple strategies?

13

WilliamMaynard - not entirely sure I understand your question. But the change described above will not interfere with your ability to AutoTrade multiple strategies in a single broker account.