Pattern Day Trading a WLP Paper Account
Author: sshiggins
Creation Date: 2/2/2017 9:07 PM
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I have several questions related to Subject.

1) When running a strategy with "Multiple open positions allowed" against a paper account, are trades made as margin trades or cash trades?

2) And if so, is the 4 to 1 margin in excess of maintenance requirements considered

3) if not, I would assume that I need to set the paper account balance to the margin buying power value. Is this correct?

4) How does this apply to trading against a live account?
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1) The PaperTrader does not follow the PDT (pattern day trader) rule. As long as your virtual buying power is sufficient, it should be okay to execute paper signals.

2) The only margin that the PaperTrader adheres to is the Margin Factor you set.

3) Sounds good.
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On 2), I thought the Margin Factor had not impact on Raw trading, which is what I am doing for paper testing.

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That's right.
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4) It doesn't apply to a live account. Wealth-Lab trading is always hypothetical. If you run into a situation in which you don't have enough buying power, your live order will "error out". Likewise if your script later tries to exit the position you don't own, it too will error out.

For more info, be sure to see the User Guide "Orders chapter" topics, especially:
1. Orders > Paper Trading
2. Orders > Portfolio Synch
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