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Re: Computer froze, lost $2800
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Dte, I'm interested in knowing who your friend's broker is and what market was being traded? I didn't hear about any exchange outages on Friday so I'm really surprised something like this could happen. If it was neglect on the part of your broker, take your money elsewhere.
Mcichocki, can you please talk a little about how to hedge in the event of an outage? Thanks. |
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What I've been taught was to hedge the YM (which is what I trade) with the ES in the event of an ecbot outage. Overall consensus seems to say for every 10 YM points the ES moves roughly 1 point so it's an easy conversion with a 1 to 1 contract ratio. Granted the YM is $5 per point and the ES is $50 per point so it is potentially more per tick being risked if the 1:10 point ratio gets out of wack.
BUT anywhoo...what you would do is this...
Should you be in a YM position and the ecbot goes down and locks you into a position you would put the opposite order on the ES at your YM stop loss so that if the YM goes against you while trapped the ES trade fades and hedges your losses on the YM.
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Volume, time and price work in unison to create waves which determine perceived value. Listen to what the auction is telling you.
Thanks to my mentors that have helped/are helping me unravel this ball of insanity. I WILL get there and you WILL NOT be forgotten.
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