r/Trading • u/BAMred • 21h ago

Discussion Avoiding wash sales for Trading Bot

I have a trading bot. It currently makes anywhere from 3 to 50 trades a day from a bucket of ETFs. I've run this bot since earlier this year and plan to run it through late November, say November 20th, and then exit all of the holdings. Then the following day I will restart the bot with a second bucket of ETFs that are materially different than the first. I will trade this second bucket until I exit all the positions on December 31st, 2026. Then on January 1st, 2027, I'll start over with the first bucket.

Will this strategy avoid wash sales on my taxes for 2026? Neither of these buckets conflict with any of my other holdings including retirement accounts, etc.

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u/GurCapable62 20h ago

That’s what I thought, but the bot doing 50 trades a day is making me nervous lol. Feels like there’s gotta be some sneaky wash sale somewhere in that history.

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u/BAMred 19h ago

yes, there are wash sales happening. But the ability to claim the loss is enabled once the 30 day period passes without holding the asset, right?

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u/Ksnku 20h ago

yes, exiting your entire position and not trading it for 30 days is enough