I am looking to trade a strategy for multiple clients in an IB advisor account. However, I am confused about the methods IB offers to allocate shares to the individual (client) accounts. Here are the situations I see as problematic:
Scenario A: onboarding a new client
* account #1: existing client, $100,000.00 total, all invested in stocks
* account #2: new client, $100.000.00 total, all cash
* trade: $100,000.00 in the same stocks as account #1, all to be allocated to account #2
* issue: it seems that this is calling for IB's 'AvailableEquity' method of allocation? However, this would conflict with scenario B
Scenario B: daily re-balancing
* account #1: $100,000.00 total, 100 shares XYZ, $0 cash
* account #2: $99,999.99 total, 99 shares XYZ, $999.99 cash
* trade: sell 199 shares
* issue: this seems to be calling for IB's 'NetLiq' method of allocation. However, I am concerned that there are situations in which the required rounding will lead to incorrect results?
What's the best way to make sure that all accounts are as close as possible to a desired distribution, based on the net liquidation value of the accounts?
Thank you,
best regards, Felix
IB Advisor Account: allocation to individual accounts
- TJ
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Re: IB Advisor Account: allocation to individual accounts
I am looking to trade a strategy for multiple clients in an IB advisor account. However, I am confused about the methods IB offers to allocate shares to the individual (client) accounts. Here are the situations I see as problematic:
Scenario A: onboarding a new client
* account #1: existing client, $100,000.00 total, all invested in stocks
* account #2: new client, $100.000.00 total, all cash
* trade: $100,000.00 in the same stocks as account #1, all to be allocated to account #2
* issue: it seems that this is calling for IB's 'AvailableEquity' method of allocation? However, this would conflict with scenario B
Scenario B: daily re-balancing
* account #1: $100,000.00 total, 100 shares XYZ, $0 cash
* account #2: $99,999.99 total, 99 shares XYZ, $999.99 cash
* trade: sell 199 shares
* issue: this seems to be calling for IB's 'NetLiq' method of allocation. However, I am concerned that there are situations in which the required rounding will lead to incorrect results?
What's the best way to make sure that all accounts are as close as possible to a desired distribution, based on the net liquidation value of the accounts?
Thank you,
best regards, Felix
You might want to try your question at a trading forum.
- fbertram
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Re: IB Advisor Account: allocation to individual accounts
I have posted a feature request to IB's Feature Poll. If you are facing similar problems as I do, please vote for it:
https://www.interactivebrokers.com/en/?f=2493&sid=12643
https://www.interactivebrokers.com/en/?f=2493&sid=12643