Multiple Strategies on one Product Entries

[Zhorny]

Hi Team,

I've developed more than one strategy for a single contract.
Instrument: Euro Future

Let's say strategy one: BUY 1 @ 1.2950 with a stop @ 1.2900 and a limit @ 1.2980
Meanwhile the price is now 1.2930 and strategy two tells me to SELL 1 with a limit @ 1.2910 and a stop @ 1.2970.

What would happen in terms of execution? Would they be treated as two different positions and not take each other out? (i.e. I'm LONG @ 1.2950 but strategy two tells me to sell @ 1.2930...would this mean I am out of my trades altogether or does it treat it is two different strategies still with their respective limits and stops attached?)

Thanks

[NinjaTrader_Matthew]

Hello,

You cannot have multiple positions on a single strategy.

Depending on how you are buying/selling into a position, there may be some Internal Order Handling rules that would prevent these orders from being placed.

Please review our Help Guide article on Internal Order Handling Rules that Reduce Unwanted Positions for more information:

http://www.ninjatrader.com/support/helpGuides/nt7/index.html?managed_approach.htm

[Zhorny]

In order to get around this I would need to have a different account with my broker for every strategy that I run that way it won't cross up on the same account?

[NinjaTrader_Matthew]

Hello,

I'm sorry I misunderstood - sorry for the confusion! The internal order handling rules only apply to each individual strategy and there is no cross communication between them.

Since you're running multiple strategies, it is possible to have multiple strategy positions on a single instrument on each strategy.

If you were long in Strategy A and short in Strategy B, your account position would be flat. However each strategy would show it's respective position (i.e, one long and one short, each with it's respective stops and targets)

Please review our Help Guide article on Account Position vs Strategy Position:

http://www.ninjatrader.com/support/helpGuides/nt7/index.html?strategy_position_vs_account_p.htm

[Zhorny]

Great that's what I was after. So for clarification "yes, I can run multiple strategies on a single instrument on one account as my NET position might be different from my individual strategy positions they will all be treated different according to their own individual rules".
Thanks. Will have a read of that doc.

[NinjaTrader_Matthew]

Zhorny, yes you understand correctly. You can test this out on the Sim101 account to get a feel for how it might operate.