Break even strategy

[muddyWildcat]

This may sound a bit odd but I'm looking for some direction on finding a break even strategy. I have a 4 day swing strategy that's working great but only trades 80 times/year. In order to qualify for TTS from the IRS I need to trade at least 720 times/year. I'm looking for a strategy that I can automate that will trade 4-5 times/day with hopefully at least breakeven results. I thought about just opening/closing a trade in 5 seconds and just eating the commission but would at least like try to make the effort to recover the commission which will be about 9k.

Thanks in advance for any help.

 

[John28]

Maybe switch to a Dat broker and pay per share commission.

 

[muddyWildcat]

Thanks, I think that may be the easiest solution. Going with IB tiered pricing gets me to $0.70 per round trip or $455 for 650 trades. Finding a low beta stock then a quick in/out should work. My current AI system is up 120% YTD and plan to increase trade size next yr. Trying to figure out how to keep more of that money.

 

[John28]

Congratulations, I'm just to the point of consistent profitability trading full time. Are you going to file for a S corp? You don't have to answer if it's to personal. I'm meeting with a accountant next month that's familiar with day trading to set up a tax entity. There's so many different arguments online about witch set up is the best.

 

[muddyWildcat]

Not sure yet. Not trading full time yet but will be coding an automated system to do all this work whether or not I do the breakeven trades. Take a look at https://greentradertax.com/ They have some good videos on YouTube about this and very good case law to back up their recommndations. I plan to either reference them to my CPA or do a consultation with them to figure out if an entity is worth it.