I'm guessing that most brokers will not allow you to do this, especially in
a single account.  I specifically setup multiple accounts with Interactive
Brokers to be able to trade both sides of the market at the same time.  The
first time I tried to do it, Interactive Brokers would not allow me to
execute an opposite direction trade in my second account giving me a message
that it violated some SEC rule.  However you can probably get around this if
you trade two accounts at two unrelated brokers.  Maybe the rules are
different in other countries.  The way I handle trading both directions now
is to trade related securities in opposite directions (e.g. for US index
futures: YM, NQ, ER2, ES) although I rarely have the need to do it.  Over
the last year, I did it the 3 times to hedge my open positions the days the
CBOT exchange crashed.

 

Since your long and short trades are independent of each other, why not
divide your initial equity in half and test the long and short trades as
separate systems?

 

Regards,

 

David

 

  _____  

From: [email protected] [mailto:[EMAIL PROTECTED] On Behalf
Of dralexchambers
Sent: 04/16/2007 3:05 PM
To: [email protected]
Subject: [amibroker] Help needed! - Can't Buy and Short on the same bar

 

Hi,

I am testing an intrday trading system where I place a buy order and 
a short order together on the 14:00 bar. I then set a stop loss for 
each order at 20 points and a take profit order at 10 points.

However, Amibroker doesn't seem to execute both buy and sell orders 
on this bar in the backtester. It only executes a buy or a sell 
order, and never both at 14:00 - even though there are valid short 
and long entries on the 14:00 bar.

Can anyone help,
Alex

Here is a summary of my system, as the system code is very long:

[on 14:00 bar]
Buy = 1;
Short = 1;
BuyPrice = Open + 2 points;
ShortPrice = Open - 2 points;

[for every bar after 14:00 each day]
Sell if low of bar < LongStopLoss
sell if high of bar > LongTakeProfit

cover if high of bar > ShortStopLoss
cover if low of bar < ShortTakeProfit

 

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