Trade Better By Independently Managing Multiple Positions Per Symbol

If you’re one of the many traders who need to trade the same symbol with multiple entries and exits, at different prices and times, then we have the solution for you. Our investment strategy platform, CYBMIND, has been created with this job in mind.


When Do You Need To Manage Multiple Positions Per Symbol?

We’re all familiar with trading platforms that apply the FIFO method to calculate the market position for each symbol, thus allowing you to buy and sell multiple symbols. Nevertheless, more experienced investors tend to approach the market with multiple strategies and by multiple time horizons.

Why? Well, market behaviour is complex and challenging, so having different strategies can help the bottom line. Apart from that, short-term risk metrics tend to be wildly different from the medium and long term ones, and the liquidity of the market is different during the calendar period, trading hours, and wider macro economic events. 

Therefore, managing multiple positions per symbol makes for a better and more efficient trading strategy. But this is not where it ends: although the risk in the market is the net position as a result of all these entries and exits, traders need to apply different rules to different entries.

This is why you need to work with software that allows you to do that by position.


Trade by Position Vs Buy & Sell Trading

Buy-and-Sell Trading is based on the FIFO method, with one trade sequence that is important for the market position. For example, first you buy a security and then you sell it, with the sell potentially being close to the buy, partially close to the long position, or reverse to go short.

Trade by Position, however, means that each entry has its own exit. So, if you open a long position, the buy comes first and, for the same quantity, you later place a sell. The opposite would be true for a short position. 

But this is where things get even more complex. For example, what would happen if you open a long position, and then a short position that are independent of each other? 

Well, the sell of the entry for the short position would be disconnected from the sell of the exit for the long position. This, in turn, makes it possible to manage multiple entries and exits on which the buy-and-sell orders are not matched in time sequence order, but are matched according to your position identifier. 

More importantly, each position could have different risk metrics applied to it, and the position entry and exist can be broken down in multiple entries.


To Ace Multiple Position Per Symbol & Trade Better You Need CYBMIND

Considering financial market behaviour is already complex and challenging, adding multiple entry and exit points for the same symbol makes the whole process that much harder to figure out. After all, such investment strategies mean that the net market position can be the result of a large number of independent positions, each of which comes with its own logic and risk. 

The Wakett Framework with TIBCO Straming®, with CYBMIND in particular, has been designed and developed with the tools needed to quickly and efficiently manage multiple real-time trades and positions, on multiple venues and accounts. 

Indeed, trading by position is how CYMBIND works and this system, whose features traders can integrate into the platform to maximise trading, can be used to help with systematic trading, semi-automated trading, and even manual trading.

So get in touch with us to discover more how you can customise our trading software to your specific trading needs, including multiple positions per symbol trades!