Stock Mergers

[antrux]

How might a strategy handle this situation:

It currently holds a position in XYZ instrument
XYZ company is bought out by ABC
ABC offers the shareholders of XYZ a stock merger instead of cash
XYZ instrument no longer exists yet your broker now shows you hold a position in ABC

Might the strategy somehow see this and change it's instrument to ABC?
Might it crash?
What would happen if the merger were for cash? Cash is sent to the broker for your position and XYZ instrument no longer exists in the market. Does the strategy keep running?

Thanks in advance.

Side Question: Portfolio Backtesting
Any status update on NT request SFT - 137? Any ETA?

http://ninjatrader.com/support/forum/archive/index.php/t-74181.html

[NinjaTrader_PatrickH]

Hello antrux,

Thank you for your post.

If the instrument became unavailable (the one the strategy was originally running on) then the strategy would be disabled. There is no means to program the strategy to switch instruments, even based on the scenario you described.

SFT-137 has not been implemented and there is no word on if this feature would be implemented in a future release.