Automated trading options with IB or other firms - Any advice or comments?

Discussion in 'Automated Trading' started by OddTrader, Jul 29, 2006.

  1. Automated trading options with IB or other firms - Any advice or comments?

    It looks like there is very little information can be found about automated trading options.

    Are there any options-specific issues or problems for practically doing automated trading?

  2. Gustaf


    I have put on option trades in an automated fashion from IB API.
    Its nothing special only thing is there is usually a 5 cent spread to combat.

  3. Ditto. Gustaf mentions the main reason for lack of information on this topic - spreads. When penny spreads come around, things might change.

  4. Are there any particular options would be most suitable for automated trading, considering such as liquidity (volume?)/ strategy/ underlying instrument (stocks/ bonds/ indexes/ commodities) , moneyness (ITM/ ATM/ OTM)/ etc. ?
  5. Hi OddTrader, I see you have been mining the Options forums recently :)

    If you're interested in automated trading options, you might want to PM Metooxx as I believe he has been doing automated option arbitrage for several years now.

    Good luck!

  6. Thanks MoMoney for the pointer.

    Yes, that's true. Seems I should start a hoop up thread for automated trading options. :)
  7. alanm


    Biggest obstacle to some strategies is the cancel/modify fees and pacing/MM restrictions.
  8. Do you think the following offer from MB is useful?


    Am I charged a new commission every time I cancel an order?

    No. Even if an order is partially filled, you can use our "cancel/replace" feature to modify the order's price and/or size, without incurring an additional commission.
  9. Well their commissions seem to have come down but they still don't allow naked PUTs/CALLs etc. I'm not even sure they allow verticals or other multi-legged strategies.

    IIRC, their API is COM only. May or may not be an issue for you.

    Do you have a proven strategy in mind for automation?

    #10     Aug 2, 2006