Automated trading on Direxion mutual funds

Discussion in 'Trading' started by JezLiberty, Feb 3, 2010.

  1. Let's say that I have a succesful strategy for trading Direxion mutual funds that involve placing an order just before the close/end of trading hour.

    What would you recommend as a broker that supports this (with cheap commissions).

    I have looked at I but I am not sure the Direxion mutual funds are available on there and and in any case IB charges a nasty commission on MF orders.

    I have started looking at Scottrade but I cant find any info on them having an API..

    Anybody done that/got any ideas please?

    Thanks in advance for sharing... :)
  2. those mutual funds price once daily and usually have a cutoff (depends on the platform) that varies so check around. They are also (on most every platform) part of the NTF/NRF (no transaction fee no redemption fee) programs on most major brokers so you will be able to trade (provided you can make the minimum initial investment) for free in & out.

    Only caveat is that because they price only once daily you can not trade them - only buy & hold overnight. Assuming you really meant MUTUAL FUNDS not ETFs.
  3. Hey WinstonTJ,

    Thanks for the feedback - yes I am aware of differences with Mutual Funds (and I did not mean ETF).

    The idea is to have an API that performs some checks just before the cutoff time and either buy or sell the fund (to be held overnight).

    Scottrade has confirmed by email that they do not have any API offering so it's back to square 1... searching for a broker that offers an API AND as you mention NTF/NRF (no transaction fee no redemption fee) program (or very small fees)
  4. I'm pretty sure the transaction fee / redemption fee is there to prevent exactly what you are trying to do..
  5. they are NTF/NRF

    OP - you don't need an API - platforms cut off at different times depending on the relationship with direxion. Fidelity may allow their customers to purchase/redeem earlier or later than another firm, say etrade. I know E*Trade's cutoff is 3:45 for most of the Direxion mutual funds and I know there are other platforms that have earlier cutoffs around 2:30pm EST. It all depends on who you clear through and what the relationship is - also not every platform offers mutual funds on a NTF/NRF program.

    Also there are only ~20 of these funds - why not manually trade them?
  6. well - if it can be automated, why not drink a piña colada on the beach in Cancun (possibly with your girlfriend :cool: ) while a robot is doing the trading for you... :p
  7. NoDoji


    Because the robot will open a secret Swiss account, transfer your gains into it, then steal your girlfriend while you're passed out on pina coladas.

    TJ will surely confirm this.