I have a multi-day (not day trading) long-short strategy in paper trading with less than $25k.
I entered the market last week and held until now. Now that it has provided returns the algo is trying to exit completely to lock in those returns, but being blocked due to PDT.
Error: trade denied due to pattern day trading protection.
By my reading of the PDT, this doesn’t make sense.
The rules adopt the term “pattern day trader,” which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days…
Each security was bought (or sold short) last week, and is now being sold (or bought) to exit. So this should not flag PDT.
What am I missing?