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GBP Pairs - Illiquid Market - Blown Accounts - What price did you get?

McLeonis (McLeonis)
Oct 08 2016 at 06:59
14 Posts
theHand posted:
What nobody is mentioning here is that the frequency of these events are increasing. Something like BREXIT or Chf is supposed to be a 10 or 15 year event. Yet we have Chf, BREXIT, Turkey, Gpb all in a very short period of time.
It's telling you something.....

Exactly, faster cycle but same rules. Robo and auto trading, they makes these event worse. 😡

I don't throw darts at a board – I bet on sure things.
bestdarngood
Oct 08 2016 at 08:04
174 Posts
Luckily I only had a small trade in GBPUSD at the time, plus had a basket trade open so the other pairs compensated for the loss in GBP. You would think after the Swiss move a couple years ago, they would have something in place to help prevent such moves like this...

See my profile or message me for my latest EA
GJscalper
Oct 08 2016 at 13:35
237 Posts
bestdarngood posted:
Luckily I only had a small trade in GBPUSD at the time, plus had a basket trade open so the other pairs compensated for the loss in GBP. You would think after the Swiss move a couple years ago, they would have something in place to help prevent such moves like this...


  Are you kidding me? Don't you understand that it is for reasons like this that this market is not 'regulated'. You guys have to understand that this exchange is just as bad as bitcoin to invest into. Leaving a position overnight is a ticking time bomb ladies and gents. We see that so many accounts have blown but how many accounts actually profited from that move?

@GJscalper for more information
focusedfinance
Oct 08 2016 at 16:38
14 Posts
theHand posted:
What nobody is mentioning here is that the frequency of these events are increasing. Something like BREXIT or Chf is supposed to be a 10 or 15 year event. Yet we have Chf, BREXIT, Turkey, Gpb all in a very short period of time.

It's telling you something.....


There is a difference between market volume and liquidity. Liquidity is the willingness for someone to take the other side of the trade (for example Bank X is asked to quote in EUR500million, makes the price and takes the trade without being able to offset the trade immediately.

Liquidity is falling because of;
- Regulation
- Electronic price matching
- Electronic trading and things like 'riskless' market making
- All the electronic stuff means there are fewer people in the system, and somewhat ironically it has reduced the level of tradecraft among dealers so guys and they are less able to deal with very big moves.

Things will get worse over time and the gaps will be bigger.

If you like it, buy it. If you don't sell it.
focusedfinance
Oct 08 2016 at 16:59
14 Posts
GJscalper posted:
bestdarngood posted:
Luckily I only had a small trade in GBPUSD at the time, plus had a basket trade open so the other pairs compensated for the loss in GBP. You would think after the Swiss move a couple years ago, they would have something in place to help prevent such moves like this...


  Are you kidding me? Don't you understand that it is for reasons like this that this market is not 'regulated'. You guys have to understand that this exchange is just as bad as bitcoin to invest into. Leaving a position overnight is a ticking time bomb ladies and gents. We see that so many accounts have blown but how many accounts actually profited from that move?


Regulation is not the issue. Your perception of how the market works is incorrect. The Tickmill chart with a 1.14 low is not incorrect. Apparently some bank trades went through at those levels.

6% is not that big move. In the late 1990ies I traded a 75% devaluation in one day. Yes. 75%! It was the Zimbabwe Dollar. No algos or fancy stuff. No real news even (other than economic fundamentals). To this day I can't put my finger on the cause of the move other than concern turning into worry turning into panic. To top it off ZWD was an exchange controlled currency so theoretically there was no speculation. What I can tell you is that in 3 hours or mark-to-market losses were roughly 1 year's worth of the dealing desk budget. And interestingly enough it happened on a Friday.

If you like it, buy it. If you don't sell it.
exnessdubai
Oct 09 2016 at 06:27
8 Posts
i have a good trading system,it will give 30-200% profit, but opposite move in single candle is only one issue for my system,how can i rectify this?

we can stop trade during news time.it is expected one.but unexpected move???

any idea?

pwnsweet
Oct 09 2016 at 06:41
1 Posts
McLeonis posted:

I remember that moment, very big move. And many other I went through.
Still, i survive and make profit from that. Smart investors will win. 😀


A 50% move in a tick is not something you can predict. How smart you are has nothing to do with it.

heisenberg102030
Oct 09 2016 at 06:56
3 Posts
I've read terrible stories of people that lost hundreds of thousands with relatively small accounts that day of the CHF crash.
To me it is imperative to trade using a corporation account in order to limit the damage in case something goes really funky,otherwise you are risking your house . Do some math.Even a few lots trades can be disastrous with a drop of that entity.

Tony Pipsy (Kingace)
Oct 09 2016 at 07:37
43 Posts
I was having a 33% DD with _1% loss on my account until the GBP move, Now i have closed all open trades with +11% profit.......So i can safely say that i benefited from the move.😄😎



McLeonis (McLeonis)
Oct 09 2016 at 11:02
14 Posts
pwnsweet posted:
A 50% move in a tick is not something you can predict. How smart you are has nothing to do with it.

I can smell the crash. Same rules but different period. 😇

I don't throw darts at a board – I bet on sure things.
SaltyWaters
Oct 09 2016 at 16:08
247 Posts
It seems my systems love these kind of events. They made it through this one, the Brexit, the Swiss crap, the 2008 crash and whatever it happened in between. Bring it on baby! It's like grab the money and run!😎

Matt (BluePanther)
Oct 10 2016 at 02:46
1356 Posts
HotForex Micro account

Anhänge:


fx4btc
Oct 10 2016 at 07:44
97 Posts
So far the lowest quoted price is 1.100 on GBPUSD at MT.Cook -

Thank you for those who contributed to this discussion and stayed on topic.

We can probably move to the next subject 'What broker went bust?' - I have two pending withdrawals not being met as of yet. What about you?

cuchuflito
Oct 10 2016 at 08:29
3 Posts
theHand posted:
Just fx lads. Not broker specific.

Not half as big as Chf 2 years ago. This was a 10% move in a few seconds, Chf was 50% in a tick.

Fx is not for everyone. If you can't afford to lose, don't play.

I traded through his just fine, the lesson is expect these events, they are normal and if your systems can't handle them then you're not ready for live time.



ABSOLUTELY: it really doesn´t matter what caused it...
Only protection is to have a position size able to handle at least a 1000 pip gap and survive ...
I trade only 5 minutes chart, in and out, usually in less than a couple of hours...that reduces my 'sitting duck' exposure.
Brokers won´t honour stops till after the fact.
In the EURCHF black swan, some big Brokers (won´t mention their names), returned big winning trades with a loss , a few days later, claiming they had a legal right to requote, to protect themselves from the negative impact of the loosing trades.!!!???

xgavinc
Oct 10 2016 at 09:30
235 Posts
If you have a low leverage the effect is reduced significantly. I took a loss with this one, but still alive (lost my Brexit referendum gains).

As to the 'smart' comments, the only smart thing is to limit risk, if you made a profit, it was pure luck (nobody expected this, there was no news event at the time and even the most seasoned traders expected a decline but not of this magnitude within such a short time).

Consensus thus far is that there was a void in the market, this caused a significant increase in spread which kicked off an Algo trading put options... which then had a domino effect on other Algo's to short, on the way down it took out stop losses that magnified the speed of the decline, trades deemed to be rogue were cancelled, capping the price to 1.18 (6% cap, 10% actual decline of 1.13).

Overall, expectations are for further decline (after the recovery) heading toward the actual Brexit next year, though some are more optimistic, citing external factors will mitigate the decline and may even increase the value of the pound.

I have closed GBP and JPY charts for now, concentrating on recovery with a 4 chart hedge + Gold.

For every loss there should be at least an equal and opposite profit.
johnnapiranha
Oct 10 2016 at 09:58
10 Posts
GJscalper posted:
bestdarngood posted:
Luckily I only had a small trade in GBPUSD at the time, plus had a basket trade open so the other pairs compensated for the loss in GBP. You would think after the Swiss move a couple years ago, they would have something in place to help prevent such moves like this...


  Are you kidding me? Don't you understand that it is for reasons like this that this market is not 'regulated'. You guys have to understand that this exchange is just as bad as bitcoin to invest into. Leaving a position overnight is a ticking time bomb ladies and gents. We see that so many accounts have blown but how many accounts actually profited from that move?


only if you are over-leveraged with you stop loss set too tight. I personally love these moments because I see them more as opportunities. I made profit (ok, it's pretend profit on my demo account because I'm learning) when I saw the flash crash then I grabbed some great trade positions. if you lower your trade size so that you can set your stop loss out further so you can handle a flash crash without it closing the trade. that's my advice, but again I'm only demo & learning, but I've remained profitable since I opened this one on 2/28 so I'm wanting to go live as soon as I get the capital together. my account is public. I'm slow & steady, I was caught off guard the day of the Brexit (not watching any news) & lost a significant amount of those profits, but I stayed in the game. it rattled my cage a bit through July, but then I was growing steady again now back where I was before the Brexit vote losses. I'm hoping I'm ready, anyone with experience has a moment to look at my stats, please tell me if you think I'm ready to go live. I'm all self taught. my first 3 demos tanked fairly quickly. it wasn't until opening this 4th demo account that the tide turned because I made strategic changes. no one can say I give up easily, at least.

Cut it while it's hot.
cuchuflito
Oct 10 2016 at 14:40
3 Posts


only if you are over-leveraged with you stop loss set too tight. I personally love these moments because I see them more as opportunities. I made profit (ok, it's pretend profit on my demo account because I'm learning) when I saw the flash crash then I grabbed some great trade positions. if you lower your trade size so that you can set your stop loss out further so you can handle a flash crash without it closing the trade. that's my advice, but again I'm only demo & learning,

Stop loss set too tight???????????
You mean 700 pips and more to be safe?
...I don´t know if your demo acts like live, cause the PROBLEM is live, STOPS WERE NOT HONOURED!
If there´s nobody on the other side of your stop it will be ran over by the locomotive, and then triggered, AFTER the Train stopped...and the potential margin call triggered, or a massive loss...

That is what we are discussing here brother.??

Btw. 700 pips...right...? The EURCHF GAP last year was over 2500 pips...!!!
Be glad youré trading demo...and learn your lesson well before going live...
CANOT HAPPEN TO ME is a fallacy...

cuchuflito
Oct 10 2016 at 14:40
3 Posts


'....only if you are over-leveraged with you stop loss set too tight. '


You mean a 700 pip stop, or a 2500 pip stop in case of the EURCHF last year?

xgavinc
Oct 10 2016 at 15:05
235 Posts
cuchuflito posted:


'....only if you are over-leveraged with you stop loss set too tight. '


You mean a 700 pip stop, or a 2500 pip stop in case of the EURCHF last year?


Woah!, calm down there tiger :-D

You are right though, unlimited slippage. And those who made a profit... I wouldn't celebrate just yet, those profit trades may still be rendered null and void (off market quotes) and can be cancelled (ask seasoned traders if you are new, we've all had that happen before at some point), if not, congrats!

The only thing that can protect you in situations like these is a low leverage and ample margin level (more leverage will require more margin buffer)... that's all that can save you. I took an 84% loss, 100% would have been blown account... so very close... too close! this has prompted me to decrease my risk a little more.

For every loss there should be at least an equal and opposite profit.
vontogr (togr)
Oct 10 2016 at 16:17
4862 Posts
cuchuflito posted:
theHand posted:
Just fx lads. Not broker specific.

Not half as big as Chf 2 years ago. This was a 10% move in a few seconds, Chf was 50% in a tick.

Fx is not for everyone. If you can't afford to lose, don't play.

I traded through his just fine, the lesson is expect these events, they are normal and if your systems can't handle them then you're not ready for live time.



ABSOLUTELY: it really doesn´t matter what caused it...
Only protection is to have a position size able to handle at least a 1000 pip gap and survive ...
I trade only 5 minutes chart, in and out, usually in less than a couple of hours...that reduces my 'sitting duck' exposure.
Brokers won´t honour stops till after the fact.
In the EURCHF black swan, some big Brokers (won´t mention their names), returned big winning trades with a loss , a few days later, claiming they had a legal right to requote, to protect themselves from the negative impact of the loosing trades.!!!???

I recall watching my account live when snb removed the chf cap. Not to mention my trades were opposite to huge market drop. But when i get close to heartattack as none of sl was executed, at the end the system handled this situation as breakeven

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