God bless IB, but you won't get rich with IB

Discussion in 'Index Futures' started by Anti-Hurst, Dec 28, 2008.

  1. DmanX

    DmanX Guest

    True. And likely IB would be a bit more susceptible to a "black swan" type of event considering the range of products with their varying margin requirements and settlements they offer.

    Though, I wonder how much more protection is there in using exchange minimum margins over their 50% intraday margin considering that IB liquidates positions once they fall below set minimums?

    One would think that IB would be working on better margin algorithms to avoid catastrophe. The range of products they offer is a risk in an of itself considering the array of synthetic positions a trader can put on. Some of which can be difficult to calculate let alone anticipate.

    I think IB should offer restricted accounts - accounts that are limited to trading in certain instruments - as opposed to a universal account. Along with such restrictions, should come different margin schedules optimized for the type of account.

    In any event, I see a number of posts of defense of IB's margin policy. Granted, it may provide an extra level of "cushion" but I'm not sure it really does all that much to protect the assets of other clients. I'd like to see IB be a bit more proactive about monitoring the types of trades and account equity utilization.
     
    #11     Dec 29, 2008
  2. DmanX

    DmanX Guest

    The funny thing is, they don't have to leave IB. They can open another account at say, Mirus, Amp, etc. The account minimums at most of the other brokers is quite low - low enough that they can keep their IB accounts.

    What's more, they can get a superior feed like Zenfire and a great front end like Ninja Trader.

    What do they have to lose except $10 a month for inactivity data fees in their IB account?
     
    #12     Dec 29, 2008
  3. Yeah love the attitude. That's real good. And you started out tripling your account. Right?

    You'd be a much bigger asset to the site if you kept your mouth shut approx 20% of the time.

    I've never seen anyone belittle users on here as much as you
     
    #13     Dec 29, 2008
  4. moarla

    moarla

    >>>>DmanX

    ZENFire is NOT a superior datafeed; is a tick by tick feed, that lags in heavy makets..
    thats all
     
    #14     Dec 29, 2008
  5. I have only seen ZF lag one time in a fast market. ZF ticks otherwise are always ahead of IB's by about 200ms. Plus ZF doesn't skip a crapload of ticks like IB's does. I have also seen IB go out completely quite a few times. ZF, no. At least not yet.
     
    #15     Dec 29, 2008
  6. DmanX

    DmanX Guest

    There is a secret to using Zenfire feed with Ninja trader successfully seeing it is a tick by tick feed.

    1. Make sure you have plenty of bandwidth.

    2. In NT have no more than 3 workspaces saved.

    3. Watch no more than 3 symbols.

    4. Use no more than 3 to 4 indicators per chart and use no more than 3 to four charts at a time.

    5. Make sure you have plenty of CPU power (2ghz Dual core and up) and no less the 4GB RAM.

    6. Don't have more than 2 or 3 other programs running simultaneously while running NT w/ zen fire.

    Following these steps, that is to say, using your computer as a trading station, you should have no lag of data ever.
     
    #16     Dec 29, 2008
  7. Buy1Sell2

    Buy1Sell2

    If you were trading with a only a 2 pt stop, you would need at least $5000 per contract to trade anyway. Looks like IB is trying to protect you from yourself.:)
     
    #17     Dec 29, 2008
  8. DmanX

    DmanX Guest

    I'm curious about how you come up with that figure? And how $6188 is all that much more protective than $5000. Especially given that exchange min maintenance is $4950. With a $500 margin, if he only traded one contract, at your $5000 figure, he could stay in the game a lot longer than he would be able to at IB.
     
    #18     Dec 29, 2008
  9. moarla

    moarla

    Datalags usually starts at the data server on the data provider...too many data on too few servers for too many users in too short time...
     
    #19     Dec 29, 2008
  10. Buy1Sell2

    Buy1Sell2

    The point is simply that with ANY increase in margin requirements, they are helping him.
     
    #20     Dec 29, 2008