Red alert, stop trading

Discussion in 'Automated Trading' started by nooby_mcnoob, Feb 23, 2018.

  1. Anyone who runs an automated system without the ability to shut it down quickly is extremely irresponsible. S*** happens basically.

    These guys weren't over leveraged:

    #11     Feb 23, 2018
    digitalnomad and nooby_mcnoob like this.
  2. Buy1Sell2


    What allows you to trade the next day is to have it open at 90 and go to 88 and 85 and no stop fill and your toes are still tapping.
    #12     Feb 23, 2018
  3. Buy1Sell2


    #13     Feb 23, 2018
  4. b4ea98a1-e0bd-4452-b513-c2df341e71c2.jpeg
    #14     Feb 23, 2018
  5. Aside: are we really having an argument in this thread against a fail safe strategy? That's kind of hilarious to me haha.
    #15     Feb 23, 2018
  6. Buy1Sell2


    Correct. That is why a move of 15 percent in an instrument should not equate to 15% of Total LIquid Net Worth. Anyone trading and having to worry about getting out of all positions at once is wildly overextended.
    #16     Feb 23, 2018
  7. Buy1Sell2


    Certainly you would need one if Prudent Risk Management has not been employed. However, a person should never get themselves into a position where one would be needed.
    #17     Feb 23, 2018
  8. I worked at a successful hedge fund and they literally had a stop all trading button.

    So... I disagree.
    #18     Feb 23, 2018
  9. Buy1Sell2


    I see it was 296 million. Thus, they placed more than their entire market cap up for grabs in a situation where their technology was not up to snuff. Very careless and qualifies as being wildly overextended in the arena of market making. This was totally their fault and they were destined to fail at some point.
    #19     Feb 23, 2018
  10. @globalarbtrader

    you worked in the industry right? Did your employers employ any fail safe strategies?
    #20     Feb 23, 2018