Thanks Don,
I have been doing same (Buying day after Selling). Only difference is that I have been using a Limit order for the last position to try and avoid not having enough cash in the case where the prospective position closes higher than expected with a MOC order.
I am also interested in how Gary handles this situation but I suspect he solves by being at the computer at market close - something I have no wish to do.
Great discussion gents.
Besides the methods discussed above, there are three other methods I’ve used to sell and buy on the ‘same’ day for the last position in a portfolio.
The first and second for the Public Portfolios and the third for my other non-public facing portfolios on the US and ASX markets:
- using CFDs, as Wakefield has done - set the Buy of the last position as a MoC order for the CFD of the stock. You will pay interest on the whole position, which will be greater than the interest received for the cash released from the Exit.
- (this one requires that you have multiple USD sub-accounts) - transfer cash from one subaccount to the other to cover the Cash Buffer. A juggle every now and then.
- Using a MoO on the trading day after the Buy MoC order should have been executed (2nd day after the Signal bar).
The idea behind option 3 is that the following day open is thereabouts to the prev day’s close. Mostly the open is slightly higher or lower (not the same) than the prev day’s close but over a number of Buy signals it averages out.
I have done option 3 on occasion in the PP’s when there was no cash to transfer between USD sub-accounts.
If the 3rd option appeals compared to holding a Cash Buffer, you write it into your Investment Plan, and execute consistently in this way for the last position, you will still be holding true to rules-based execution.
I don’t know how many subscribers have IB accounts but I came across this today and thought it may be useful:
From EliteTrader 2019
My strategies rely on buying and selling ETFs at close prices. Lets say I am 100% long SPY but want to switch to QQQ at the end of the day and place orders sell all SPY MOC and buy QQQ MOC. If the buy order is executed first without selling, then I will not have the funds to execute the buy order. Is there a way to avoid this problem? Does the order in which the orders are entered matter? If I enter the sell order first and then the buy order then will I have this problem?
IB has conditional sell-at-time orders. Sell your holding at 15:59:50 and buy your new at MOC. Over time, it will all average out because you`re trading indexes.
Thanks Douglas. Conditional sell-at-time orders is a nice tip 
. At the moment, my approach is to get up before the US market closes, so sell-at-time orders would work well when daylight saving changes.
As far as I am aware, Saxo/Totality has conditional orders based only on price, distance and percentage.
How do you find IB Australia support? Do you know what bank holds the IB Australia cash account, and where the account is domiciled?
John,
It’s been a while since I contacted IB support but as I recall, my issue was solved with one phone call, so I’d say it was satisfactory.
IB Australia has its cash account with BNP Paribas, a French multinational bank.
It’s a Foreign ADI, so not covered by the client money protections of our Corporations Act.
However, it is the second largest bank in Europe and the eighth largest in the world.
It’s the 33rd largest public company in the world and the Belgian government holds 5.3% equity.
Opening an account is a matter of weighing up risk vs. convenience I guess.