What is so terrible about a simulated stop loss as long as it doesn't explode in your face more than once a year? And regarding filtered feeds. What others can you name besides Interactive Broker's Cluster F*ck?
either have really good TA skills that will get you short before the crash or only play the short side... I looked at the ES that day, I would have been short had I been in the market.. the flash problems are usually to the short side unless there is a surprise non-scheduled fed announcement or something odd like that...
No stops triggered. But I was long TLT puts that were against me. Had a limit GTC out to sell them at 4 times my purchase price knowing that it would never happen by expiry, but I always make it a habit to rest orders anyways. Flash crash spread the strike out to .01x6.00 (my offer)..some benevolent momo sent a market order during the crash and lifted me. I had actually forgotten about them. And almost fainted when I saw my fill come across my position monitor. Best day of the month all due to the flash crash human error.
Sept. 24, 2010, 3:55 p.m. EDT SEC may abolish stop-loss market orders: analysts LONDON (MarketWatch) -- Eliminating stop-loss market orders may be one of the steps regulators will take in an attempt to prevent another so-called flash crash, according to a white paper published Friday. Analysts at Themis Trading identified four major recommendations that they believe Securities and Exchange Commission staff will make in response to the events of May 6. Most notably, they said, officials may want to scrap stop-loss market orders, or an order to sell a stock when it reaches a certain threshold, but which can get filled at any price. "These orders were not the cause of the flash crash per se, but they resulted in enormous damage to many unsuspecting traditional investors," they wrote. The authors also suggested the SEC may introduce a limit up/down feature to stock circuit breakers, eliminate stub quotes and increase obligations for market markers.
those stop limit orders won't be filled.. retail investors/traders are small part of the market. why don't you just ban HFT. these guys want to ban trading.