- 1. QiT basics
- 2. Trading Basics
- 3. Member's Club
- 4. Portoflios
- 1. How to Exit with a Limit OrderAuthor: admin 13.09.18
Exiting with a Market at Open is easy enough because you just place an Exit at Market for the next morning. However, exiting with a limit order is a little more involved. Here is how to do this.
- If the signal is to place a limit order to exit tomorrow X% below/above the close of today. (We will do optimizations on this percentage to ensure we use the best one).
- Place a MOC order to exit the position if the limit does not execute.
- Both 1 and 2 need to be tied together with a One Cancels All (OCA) order. Some brokers call this a One Cancels Other, or One Cancels Another but you get the point. I’m sure it’s obvious as to why these two orders need to be tied together. If the limit order executes intra-day, you don’t want to Sell at the Close, so the MOC order has to go away when the limit fills.
I know this sounds complicated (it’s really not) but what it does is add more reality to your trading. It’s a lot easier to just exit at Market the next morning but by just adding one more order – the OCO/MOC order – you are taking more control of your trading and that is always a good thing.
Was this answer helpful ? Yes / NoViewed 1138 Times - 2. How to Get StartedAuthor: admin 14.09.18
Once you log in you will be taken to the Signals Page. This is where all the signals will be posted each night. It is important to realize the signals are typically posted between 8:00 PM EDT and 9:00 EDT each night for the next trading day.
Pay attention to the date to ensure you are placing trades for the Opening Bell of the correct day.
When you are just getting started, we suggest – suggest very strongly – you only take new trades. It's as simple as only putting on the trades that are BUY or SHORT.
It will only take you a few days to be totally in sync with the rest of us.
Once you are filled, the signals page each day will tell you what to do next:
- If long you will see either Hold – Long or Sell At LIMIT or Sell at OPEN
- If short you will see either Hold – Short or Cover at LIMIT or Cover at OPEN
- Just follow what the signals page tells you to do.
Was this answer helpful ? Yes / NoViewed 670 Times - 3. Number of Shares CalculatorAuthor: admin 14.09.18
At the bottom of each Portfolios Signal Page, you’ll see a Number of Shares Calculator.
- Enter your account size in the Account Size field
- Enter the Limit Price from the Limit column on the above Signal SpreadSheet
- Enter the Percent from the Percent column the above Signal SpreadSheet
Once you enter these numbers hit enter and you will have the number of shares to open a new position - BUY or SHORT.
Was this answer helpful ? Yes / NoViewed 616 Times - 4. What determines when we use an exit at Open vs exit at Limit?Author: admin 30.12.15
Algorithms are backtested with both exits and we use the one with the best results for the portfolio’s ruleset. My back testing has shown some portfolios, an Exit at Market results in the best set of stats, whereas with some portfolios the Exit at Limit gives the better results. Please remember that this may change as I optimize the algorithms.
All nBAR exits will always be Exit at Market.
Was this answer helpful ? Yes / NoViewed 2208 Times - 5. What is a Slot?Author: admin 30.12.15
If there are more trades than the algorithms will allow, QiT uses a technology called “Slots” where each position in the portfolio is allocated a slot. All trades that fit the rules are sorted on their respective HV(100) and the trades with the higher HV will be put into a slot. This means we trade the more volatile stocks for research as shown us those to be the better candidates for trading.
Was this answer helpful ? Yes / NoViewed 2373 Times - 6. What is an nBar?Author: admin 30.12.15
The nBar is the circuit breaker we use on a trade. It is the number of days a trade will be allowed to stay open before we exit. Each portfolio will have a different nBar stop based on the optimizations.
Was this answer helpful ? Yes / NoViewed 3681 Times - 7. What is a Trade Through?Author: admin 30.12.15
Trade Through? What the heck is that?
QiT uses a limit order to enter all positions, which requires us to handle Trade-Throughs.
We identify a candidate, according to the rules of the algorithm, then we make the market come to us by setting a limit order to enter below the close of the day (above the close for shorts).
Our limit orders don’t get filled at least 70% of the time. For the simple reason, the market didn’t do what we asked it to do. So we just walk away from it and go on the next trade.
However, there are times when our limit order is the daily low (daily highs for shorts) and we end up buying at daily lows. There isn’t a trader out there who wouldn’t identify this as a very good trade. Unfortunately, not everyone will get filled at those daily lows. Some QiT members will be, some will get partial fills and some will not be filled at all.
As a service what do we do? We originally thought we wanted to be as fair as we could to all members so we implemented a rule that required everyone who got a fill at daily lows to exit the position the next morning bringing all members back in sync. This seemed to be the fairest way to handle it.
Well, we’ve come to realize this is not the fairest way to handle it. These trades are typically very profitable and they were potentially leaving money on the table. "Punishing" members who were filled at daily lows is not our mission.
So we will consider all fills at daily lows as a valid trade. The algorithm will manage all filled positions until they're closed. However, if you are not filled, just watch it. I know it will be frustrating to “watch it” but recognize when you are filled, and others are not, they will be “watching” you make money. Believe it or not, it all works out even.
ALWAYS FOLLOW THE RULES
Check our out the Performance Matrix for our algorithms and sign up today.
Was this answer helpful ? Yes / NoViewed 2099 Times - 8. What happens when all Slots are filled?Author: admin 30.12.15
If the algorithm’s rules are 10 positions maximum it will try to fill all those “slots.” Let’s say 6 of those slots are already filled so it will try to open 4 more – this is very straightforward. But what about the slots that are filled today but have been signaled to exit tomorrow? If the exit is a market at open, the slot will become available right away but a limit exit becomes a little trickier. There could be more than 10 open positions for part of the day, or until the limit exit is reached. This is not a problem with a margin account but it is with a Cash account. The algorithm will recognize a cash account and not allow more than the maximum number of slots to be filled.
Was this answer helpful ? Yes / NoViewed 2534 Times - 9. What is an Open Cross?Author: admin 30.12.15
The Opening Cross is a process that generates a single opening price reflective of the true supply and demand of a particular stock as the market opens each day. The Opening Cross improves upon the current market open and resolves natural stock buy and sell imbalances at the open.
From 9:28 a.m. to 9:30 a.m. (the two minutes prior to the Open), the exchanges gather and publish information about buy or sell interest in a particular stock, including an indicative opening price.
Was this answer helpful ? Yes / NoViewed 9833 Times - 10. If I’m buying, do I have to wait for the limit price?Author: admin 30.12.15
Yes, we only BUY or SHORT at the posted, or a better, price on the day of the signal.
Was this answer helpful ? Yes / NoViewed 2328 Times - 11. Do a lot of the orders not get filled?Author: admin 30.12.15
Yes, the majority do not get filled. We wait for the best signals and then the best price making the trades exceptional. This is probably the hardest part of this system, waiting for the trades to come to you, and not chasing them.
Was this answer helpful ? Yes / NoViewed 2407 Times - 12. What time should I place my order?Author: admin 30.12.15
Before the market opens on the day the signals are effective. Effective date is the date in BOLD right under the Comments on the SIGNAL tab.
Was this answer helpful ? Yes / NoViewed 2167 Times - 13. What happens to my order if it doesn’t get filled?Author: admin 30.12.15
If you’ve placed a DAY order your broker will automatically cancel it at the end of the day.
Was this answer helpful ? Yes / NoViewed 2045 Times - 14. Should we wait and see and let the spread constrict when exiting a trade at the open? What if the spread is too wide?Author: admin 30.12.15
I’ve tried to “work the spread” on some stocks and 50% of the time I get a better fill than the OPEN price and 50% of the time I get a worse fill so I don’t waste the time anymore.
Was this answer helpful ? Yes / NoViewed 2169 Times - 15. Should I place these orders to be executed also during non-market hours or from 9.30am – 4pm ?Author: admin 30.12.15
No we do not use before or after hours market.
Was this answer helpful ? Yes / NoViewed 2337 Times
- 1. What is BID and ASK?Author: admin 07.01.16The bid price is the highest price at which someone is willing to pay for a stock, and the asked price is the lowest price that someone is willing to sell a stock. The asked price is always higher than the bid price.In other words, a stock might show a bid and ask of 50.25/50.30. That means if you want to sell stock at the going market price, you would get 50.25, and if you wanted to buy at the going market price, you would pay 50.30 per share.If the bid and ask prices are close together, then they are referred to as a 'narrow spread.' The spread is narrow with actively traded stocks. If the difference is far apart, then the difference is referred to as a wide spread, which usually exists for less actively traded stocks.Was this answer helpful ? Yes / NoViewed 2343 Times
- 2. What is Money FlowAuthor: admin 13.01.16
Money Flow is simply Volume * Price.
QiT uses a Money Flow filter in place of a volume filter.
Was this answer helpful ? Yes / NoViewed 1628 Times - 3. What is a Trade Through?Author: admin 30.12.15
Trade Through? What the heck is that?
QiT uses a limit order to enter all positions, which requires us to handle Trade-Throughs.
We identify a candidate, according to the rules of the algorithm, then we make the market come to us by setting a limit order to enter below the close of the day (above the close for shorts).
Our limit orders don’t get filled at least 70% of the time. For the simple reason, the market didn’t do what we asked it to do. So we just walk away from it and go on the next trade.
However, there are times when our limit order is the daily low (daily highs for shorts) and we end up buying at daily lows. There isn’t a trader out there who wouldn’t identify this as a very good trade. Unfortunately, not everyone will get filled at those daily lows. Some QiT members will be, some will get partial fills and some will not be filled at all.
As a service what do we do? We originally thought we wanted to be as fair as we could to all members so we implemented a rule that required everyone who got a fill at daily lows to exit the position the next morning bringing all members back in sync. This seemed to be the fairest way to handle it.
Well, we’ve come to realize this is not the fairest way to handle it. These trades are typically very profitable and they were potentially leaving money on the table. "Punishing" members who were filled at daily lows is not our mission.
So we will consider all fills at daily lows as a valid trade. The algorithm will manage all filled positions until they're closed. However, if you are not filled, just watch it. I know it will be frustrating to “watch it” but recognize when you are filled, and others are not, they will be “watching” you make money. Believe it or not, it all works out even.
ALWAYS FOLLOW THE RULES
Check our out the Performance Matrix for our algorithms and sign up today.
Was this answer helpful ? Yes / NoViewed 2099 Times - 4. What is an Open Cross?Author: admin 30.12.15
The Opening Cross is a process that generates a single opening price reflective of the true supply and demand of a particular stock as the market opens each day. The Opening Cross improves upon the current market open and resolves natural stock buy and sell imbalances at the open.
From 9:28 a.m. to 9:30 a.m. (the two minutes prior to the Open), the exchanges gather and publish information about buy or sell interest in a particular stock, including an indicative opening price.
Was this answer helpful ? Yes / NoViewed 9833 Times - 5. What is Unsettled Cash?Author: admin 30.12.15
Under Regulation T of the Securities and Exchange Act of 1934 all transactions in a cash account must be paid for in full. This means, if you BUY a security with settled funds in your cash (retirement type) account you may SELL that security at any time without restriction. If you BUY a security in your cash account with insufficient funds or unsettled funds you must hold that security until the purchase is fully paid for with either a new deposit or the settlement date is reached for the funds used.
Equity trades settle 3 business days following the trade date (T+3) and Option trades settle 1 business day following the trade date (T+1). The cash released from a SELL, in a cash account, are considered “unsettled” for a period of 3 business days following the trade date. However, a trader may re-use the unsettled sale cash to purchase another security prior to the settlement date of those funds but, in doing so, he/she agrees to hold the new purchase at least until the funds from the original sale settle.
If you sell the security that was purchased all or in part with unsettled funds prior to those funds settling it will be considered a violation of SEC rules and your account will be restricted for a period of 90 days. During that time you must place your trades over the phone with a live broker.
The original theory for this rule is that a customer who sells securities prior to paying for them in a cash account (either with a new deposit or settled funds from a prior sale) has received an extension of credit. Credit transactions must be executed in a Margin account.
Was this answer helpful ? Yes / NoViewed 3266 Times - 6. What does it mean to Short?Author: admin 30.12.15
Short means you borrow stock from your broker and SELL in order buy it back later. For more on shorting please read this article.
Was this answer helpful ? Yes / NoViewed 1599 Times - 7. What if my broker doesn’t have the stock available to borrow for the short?Author: admin 30.12.15
That will happen occasionally and, if it does, you have to walk away from the trade.
Was this answer helpful ? Yes / NoViewed 1979 Times - 8. Should we wait and see and let the spread constrict when exiting a trade at the open? What if the spread is too wide?Author: admin 30.12.15
I’ve tried to “work the spread” on some stocks and 50% of the time I get a better fill than the OPEN price and 50% of the time I get a worse fill so I don’t waste the time anymore.
Was this answer helpful ? Yes / NoViewed 2169 Times - 9. Should I place these orders to be executed also during non-market hours or from 9.30am – 4pm ?Author: admin 30.12.15
No we do not use before or after hours market.
Was this answer helpful ? Yes / NoViewed 2337 Times - 10. What is Mark to Market?Author: admin 12.02.16
Your account statement from your broker includes all your closed trades and open positions. The open positions are valued as of their last price. This valuation is called mark-to-market.
This fact is important because the equity curve is made up of closed trades. Open positions are not reflected in the curve. As they close, they are then added into the equity curve. But remember, new positions are always opening.
Therefore, for any given timeframe, your account statement and the equity curve will probably not match. The difference will be the value of the open positions not accounted for in the equity curve.
Was this answer helpful ? Yes / NoViewed 4514 Times - 11. What is the difference between a Cash Account and MarginAuthor: admin 14.02.16
The main difference between a cash account and a margin account is that in a cash account all transactions must be made with available cash or long positions. When buying securities in a cash account, the investor must deposit cash to settle the trade or sell an existing position on the same trading day, so cash proceeds are available to settle the ‘buy’ order. A margin account allows an investor to borrow against the value of the assets in the account to purchase new positions or sell short. In this way, an investor can use margin to leverage his positions and profit in both bullish and bearish times in the market. Margin can also be used to make cash withdrawals against the value of the account as a short-term loan.
Was this answer helpful ? Yes / NoViewed 2221 Times
- 1. How to Exit with a Limit OrderAuthor: admin 13.09.18
Exiting with a Market at Open is easy enough because you just place an Exit at Market for the next morning. However, exiting with a limit order is a little more involved. Here is how to do this.
- If the signal is to place a limit order to exit tomorrow X% below/above the close of today. (We will do optimizations on this percentage to ensure we use the best one).
- Place a MOC order to exit the position if the limit does not execute.
- Both 1 and 2 need to be tied together with a One Cancels All (OCA) order. Some brokers call this a One Cancels Other, or One Cancels Another but you get the point. I’m sure it’s obvious as to why these two orders need to be tied together. If the limit order executes intra-day, you don’t want to Sell at the Close, so the MOC order has to go away when the limit fills.
I know this sounds complicated (it’s really not) but what it does is add more reality to your trading. It’s a lot easier to just exit at Market the next morning but by just adding one more order – the OCO/MOC order – you are taking more control of your trading and that is always a good thing.
Was this answer helpful ? Yes / NoViewed 1138 Times - 2. How to Get StartedAuthor: admin 14.09.18
Once you log in you will be taken to the Signals Page. This is where all the signals will be posted each night. It is important to realize the signals are typically posted between 8:00 PM EDT and 9:00 EDT each night for the next trading day.
Pay attention to the date to ensure you are placing trades for the Opening Bell of the correct day.
When you are just getting started, we suggest – suggest very strongly – you only take new trades. It's as simple as only putting on the trades that are BUY or SHORT.
It will only take you a few days to be totally in sync with the rest of us.
Once you are filled, the signals page each day will tell you what to do next:
- If long you will see either Hold – Long or Sell At LIMIT or Sell at OPEN
- If short you will see either Hold – Short or Cover at LIMIT or Cover at OPEN
- Just follow what the signals page tells you to do.
Was this answer helpful ? Yes / NoViewed 670 Times - 3. Number of Shares CalculatorAuthor: admin 14.09.18
At the bottom of each Portfolios Signal Page, you’ll see a Number of Shares Calculator.
- Enter your account size in the Account Size field
- Enter the Limit Price from the Limit column on the above Signal SpreadSheet
- Enter the Percent from the Percent column the above Signal SpreadSheet
Once you enter these numbers hit enter and you will have the number of shares to open a new position - BUY or SHORT.
Was this answer helpful ? Yes / NoViewed 616 Times - 4. How do I cancel my subscription?Author: admin 30.01.16
That's easy just email us at jane@quantitrader.com and we'll take care of it.
We'll want to know why so be prepared.
Was this answer helpful ? Yes / NoViewed 2492 Times - 5. How do I change my Password?Author: admin 29.12.15
Go to Members\Account. A link to change your password is at the bottom of the page.
Was this answer helpful ? Yes / NoViewed 2320 Times - 6. Every day I have to reenter portfolio value to have the "calculate shares." Is this the way it is supposed to work?Author: admin 30.12.15
Yes, the calculate shares is designed that way because our algorithms are designed with compounding so all profits and losses are added to the portfolio each day. You can round down to the nearest thousand so you're not typing in a lot of numbers.
Was this answer helpful ? Yes / NoViewed 1933 Times - 7. Logging into the Members ClubAuthor: admin 04.01.16
From the Main Menu, click Members\Account\Login In. Once you enter your credentials you will be directed to the Signals for today.
Was this answer helpful ? Yes / NoViewed 1962 Times
- 1. How to Exit with a Limit OrderAuthor: admin 13.09.18
Exiting with a Market at Open is easy enough because you just place an Exit at Market for the next morning. However, exiting with a limit order is a little more involved. Here is how to do this.
- If the signal is to place a limit order to exit tomorrow X% below/above the close of today. (We will do optimizations on this percentage to ensure we use the best one).
- Place a MOC order to exit the position if the limit does not execute.
- Both 1 and 2 need to be tied together with a One Cancels All (OCA) order. Some brokers call this a One Cancels Other, or One Cancels Another but you get the point. I’m sure it’s obvious as to why these two orders need to be tied together. If the limit order executes intra-day, you don’t want to Sell at the Close, so the MOC order has to go away when the limit fills.
I know this sounds complicated (it’s really not) but what it does is add more reality to your trading. It’s a lot easier to just exit at Market the next morning but by just adding one more order – the OCO/MOC order – you are taking more control of your trading and that is always a good thing.
Was this answer helpful ? Yes / NoViewed 1138 Times - 2. When calculating shares, do I round to an even lot number or use the exact number?Author: admin 29.12.15
The algorithm does not round up or down, it uses the exact number.
Was this answer helpful ? Yes / NoViewed 2289 Times - 3. What is a Signal?Author: admin 29.12.15
A signal is the trade you take on the EFFECTIVE Date. The ACTION field will tell you what to do with the signal:
- BUY means go long
- SHORT means go SHORT
- Sell AT Open means sell the long at the next market open
- Sell AT Limit means place a limit order at the price specified
- Cover AT Open means cover your short at the next market open
- HOLD means do nothing with this position
Was this answer helpful ? Yes / NoViewed 2847 Times - 4. Why are there so many days with No Trades?Author: admin 30.12.15
QiT is a purely mathematical and technical approach to swing trading. Our proprietary algorithms were created for quality over quantity and for certainty over speculation.
Was this answer helpful ? Yes / NoViewed 2878 Times - 5. I live in Australia and cannot place trades during US market hours.Author: admin 30.12.15
QiT would be perfect for you. Signals are usually posted around 6:00 – 7:00 PM EDT and are to be entered (we do not use overnight markets) before the next trading day opens at 9:30 AM EDT, and that is all you do. This gives you approximately 14 hours to place the trades then, once the orders are placed, you walk away and do not come back until the next set of signals are posted the next day. You let the market do all the work.
Was this answer helpful ? Yes / NoViewed 1951 Times - 6. If a trades reaches its entry but I do not get a fill, what do I do?Author: admin 30.12.15
If the signal for the next day is HOLD, you can try and enter at the Limit Price. If you are filled just follow the signals.
Was this answer helpful ? Yes / NoViewed 2048 Times - 7. When the fills are better than the limit value, which value is used in your performance calculations on the web site?Author: admin 30.12.15
The algorithm will use the OPEN, which is what we should have been filled at.
Was this answer helpful ? Yes / NoViewed 2136 Times - 8. What determines when we use an exit at Open vs exit at Limit?Author: admin 30.12.15
Algorithms are backtested with both exits and we use the one with the best results for the portfolio’s ruleset. My back testing has shown some portfolios, an Exit at Market results in the best set of stats, whereas with some portfolios the Exit at Limit gives the better results. Please remember that this may change as I optimize the algorithms.
All nBAR exits will always be Exit at Market.
Was this answer helpful ? Yes / NoViewed 2208 Times - 9. Can I miss a few days and get back to it?Author: admin 30.12.15
If you want the long term consistent results that are shown in the backtest, you must trade this daily. Just like when people at your job depend on you, your account balance depends on you.
Was this answer helpful ? Yes / NoViewed 1913 Times - 10. Is there a stop and a target on the trades?Author: admin 30.12.15
We do not use stops, per se, but use Dynamic Exits. Please read about Dynamic Exits here.
We, however, don’t believe it’s prudent to hold on to a position too long. It’s hard to say what “too long” is so we let our algorithm tell us and have come up with what is called an n-bar stop. This means the position will exit after a certain number of days. That number is one of the parameters we use to optimize the algorithm and could change.
Was this answer helpful ? Yes / NoViewed 1272 Times - 11. How long do we hold the trades?Author: admin 30.12.15
You can find the average number of days held for each portfolio here.
Was this answer helpful ? Yes / NoViewed 1240 Times - 12. What is a Slot?Author: admin 30.12.15
If there are more trades than the algorithms will allow, QiT uses a technology called “Slots” where each position in the portfolio is allocated a slot. All trades that fit the rules are sorted on their respective HV(100) and the trades with the higher HV will be put into a slot. This means we trade the more volatile stocks for research as shown us those to be the better candidates for trading.
Was this answer helpful ? Yes / NoViewed 2373 Times - 13. What is an nBar?Author: admin 30.12.15
The nBar is the circuit breaker we use on a trade. It is the number of days a trade will be allowed to stay open before we exit. Each portfolio will have a different nBar stop based on the optimizations.
Was this answer helpful ? Yes / NoViewed 3681 Times - 14. What is a Trade Through?Author: admin 30.12.15
Trade Through? What the heck is that?
QiT uses a limit order to enter all positions, which requires us to handle Trade-Throughs.
We identify a candidate, according to the rules of the algorithm, then we make the market come to us by setting a limit order to enter below the close of the day (above the close for shorts).
Our limit orders don’t get filled at least 70% of the time. For the simple reason, the market didn’t do what we asked it to do. So we just walk away from it and go on the next trade.
However, there are times when our limit order is the daily low (daily highs for shorts) and we end up buying at daily lows. There isn’t a trader out there who wouldn’t identify this as a very good trade. Unfortunately, not everyone will get filled at those daily lows. Some QiT members will be, some will get partial fills and some will not be filled at all.
As a service what do we do? We originally thought we wanted to be as fair as we could to all members so we implemented a rule that required everyone who got a fill at daily lows to exit the position the next morning bringing all members back in sync. This seemed to be the fairest way to handle it.
Well, we’ve come to realize this is not the fairest way to handle it. These trades are typically very profitable and they were potentially leaving money on the table. "Punishing" members who were filled at daily lows is not our mission.
So we will consider all fills at daily lows as a valid trade. The algorithm will manage all filled positions until they're closed. However, if you are not filled, just watch it. I know it will be frustrating to “watch it” but recognize when you are filled, and others are not, they will be “watching” you make money. Believe it or not, it all works out even.
ALWAYS FOLLOW THE RULES
Check our out the Performance Matrix for our algorithms and sign up today.
Was this answer helpful ? Yes / NoViewed 2099 Times - 15. What happens when all Slots are filled?Author: admin 30.12.15
If the algorithm’s rules are 10 positions maximum it will try to fill all those “slots.” Let’s say 6 of those slots are already filled so it will try to open 4 more – this is very straightforward. But what about the slots that are filled today but have been signaled to exit tomorrow? If the exit is a market at open, the slot will become available right away but a limit exit becomes a little trickier. There could be more than 10 open positions for part of the day, or until the limit exit is reached. This is not a problem with a margin account but it is with a Cash account. The algorithm will recognize a cash account and not allow more than the maximum number of slots to be filled.
Was this answer helpful ? Yes / NoViewed 2534 Times - 16. What is an Open Cross?Author: admin 30.12.15
The Opening Cross is a process that generates a single opening price reflective of the true supply and demand of a particular stock as the market opens each day. The Opening Cross improves upon the current market open and resolves natural stock buy and sell imbalances at the open.
From 9:28 a.m. to 9:30 a.m. (the two minutes prior to the Open), the exchanges gather and publish information about buy or sell interest in a particular stock, including an indicative opening price.
Was this answer helpful ? Yes / NoViewed 9833 Times - 17. What is Unsettled Cash?Author: admin 30.12.15
Under Regulation T of the Securities and Exchange Act of 1934 all transactions in a cash account must be paid for in full. This means, if you BUY a security with settled funds in your cash (retirement type) account you may SELL that security at any time without restriction. If you BUY a security in your cash account with insufficient funds or unsettled funds you must hold that security until the purchase is fully paid for with either a new deposit or the settlement date is reached for the funds used.
Equity trades settle 3 business days following the trade date (T+3) and Option trades settle 1 business day following the trade date (T+1). The cash released from a SELL, in a cash account, are considered “unsettled” for a period of 3 business days following the trade date. However, a trader may re-use the unsettled sale cash to purchase another security prior to the settlement date of those funds but, in doing so, he/she agrees to hold the new purchase at least until the funds from the original sale settle.
If you sell the security that was purchased all or in part with unsettled funds prior to those funds settling it will be considered a violation of SEC rules and your account will be restricted for a period of 90 days. During that time you must place your trades over the phone with a live broker.
The original theory for this rule is that a customer who sells securities prior to paying for them in a cash account (either with a new deposit or settled funds from a prior sale) has received an extension of credit. Credit transactions must be executed in a Margin account.
Was this answer helpful ? Yes / NoViewed 3266 Times - 18. What does it mean to Short?Author: admin 30.12.15
Short means you borrow stock from your broker and SELL in order buy it back later. For more on shorting please read this article.
Was this answer helpful ? Yes / NoViewed 1599 Times - 19. What if my broker doesn’t have the stock available to borrow for the short?Author: admin 30.12.15
That will happen occasionally and, if it does, you have to walk away from the trade.
Was this answer helpful ? Yes / NoViewed 1979 Times - 20. If I’m buying, do I have to wait for the limit price?Author: admin 30.12.15
Yes, we only BUY or SHORT at the posted, or a better, price on the day of the signal.
Was this answer helpful ? Yes / NoViewed 2328 Times - 21. Do a lot of the orders not get filled?Author: admin 30.12.15
Yes, the majority do not get filled. We wait for the best signals and then the best price making the trades exceptional. This is probably the hardest part of this system, waiting for the trades to come to you, and not chasing them.
Was this answer helpful ? Yes / NoViewed 2407 Times - 22. What time should I place my order?Author: admin 30.12.15
Before the market opens on the day the signals are effective. Effective date is the date in BOLD right under the Comments on the SIGNAL tab.
Was this answer helpful ? Yes / NoViewed 2167 Times - 23. What happens to my order if it doesn’t get filled?Author: admin 30.12.15
If you’ve placed a DAY order your broker will automatically cancel it at the end of the day.
Was this answer helpful ? Yes / NoViewed 2045 Times - 24. Should we wait and see and let the spread constrict when exiting a trade at the open? What if the spread is too wide?Author: admin 30.12.15
I’ve tried to “work the spread” on some stocks and 50% of the time I get a better fill than the OPEN price and 50% of the time I get a worse fill so I don’t waste the time anymore.
Was this answer helpful ? Yes / NoViewed 2169 Times - 25. Should I place these orders to be executed also during non-market hours or from 9.30am – 4pm ?Author: admin 30.12.15
No we do not use before or after hours market.
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