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View Poll Results: How did the past 2 weeks of "financial crisis" effect your trading?
Made more money 19 51.35%
Lost money 3 8.11%
Blew my trading account 2 5.41%
No effect on my trading 2 5.41%
Stayed out of the markets during that time 11 29.73%
Voters: 37. This poll is closed

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Old 10-16-2008, 10:05 AM   #1

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How Did You Do in the Past 2 Weeks of the "financial Crisis"?

How did the volatility of the past 2 weeks affect your trading strategy? Did you make more money then usual? Did you lose money or did you even blow up?
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Old 10-16-2008, 10:43 AM   #2

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Re: How Did You Do in the Past 2 Weeks of the "financial Crisis"?

You first.
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Old 10-16-2008, 10:50 AM   #3

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Re: How Did You Do in the Past 2 Weeks of the "financial Crisis"?

I walked away. If its outlier price action then I don't have an edge. I make my living on the rule, not the exception to it.

I just focused on spot FX the past two weeks with reduced size and did pretty well.

In the futures market as far as i'm concerned there weren't trades, just gambles. And the stop placement I would have to use on my method with the increased volatility is 2-3x's bigger than normal so I said no thank you.

What about you guys? Did you all play in the sandbox?
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Old 10-16-2008, 11:41 AM   #4

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Re: How Did You Do in the Past 2 Weeks of the "financial Crisis"?

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Originally Posted by brownsfan019 »
You first.
I didn't trade at all during that time. Didn't even watched the screen so I heard about it in the news like the general public...
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Old 10-16-2008, 11:41 AM   #5
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Re: How Did You Do in the Past 2 Weeks of the "financial Crisis"?

This has been the most fun and exciting trading I have had since the mid 80's
My usual 'representations' / 'indicators' have been sufficiently adaptive (with understandable but consistent overruns of course)...and I dusted off a couple latent methods and styles from the old days
Basically, I have been running wide open at pretty heavy size 5 to 6 hours a day for the almost a month now. Only losing day was Oct 3 - some days I can't actively trade my way out of a wet paper bag and that was one of them. Otherwise simply amazing, incredible. Was 'proud' the first few days - that has given way to feeling blessed and grateful... I could stand weeks and weeks more of this but am prepared for it to suddenly and / or gradually be over
Major adjustments made -
1 went to one time frame only,
2 widened stops considerably
3 worked a little on being more patient to let moves complete before acting. ie no stepping in front of trains
4 in execution increasing reliance on market orders (eg in more 'normal' conditions would be concerned to keep an ES point - in these conditions willing to give up a point to keep 9 or more etc.)
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Old 10-16-2008, 02:31 PM   #6

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Re: How Did You Do in the Past 2 Weeks of the "financial Crisis"?

Very cool zdo, thanks for sharing. I would have loved to see the trading activity in real-time during that time.
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Old 10-16-2008, 08:46 PM   #7

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Re: How Did You Do in the Past 2 Weeks of the "financial Crisis"?

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Originally Posted by zdo »
3 worked a little on being more patient to let moves complete before acting. ie no stepping in front of trains
This I also found to be a very key factor during these times as well. I waited an extra step to initiate a position instead of the typical aggressiveness. Good stuff zdo.
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Old 10-16-2008, 09:09 PM   #8

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Re: How Did You Do in the Past 2 Weeks of the "financial Crisis"?

Been doing some quick 12-18 hour hops and have done better these past 16 days than I ever have in the past. I think it was a combo of:

1. Watching the freight train bars- you see a weekly bar with bears fully in control- you'd be a fool to do anything other than short
2. Spotting exhaustion and cashing out.
3. Patiently waiting for opportunity (even if it takes 12-24 hours) and THEN pulling the trigger.

Aaron
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