Says who? I trade one contract per $5,000 and have made 200% through 400 trades in one year, which is statistically significant. Please provide evidence and don't base your statement on opinions if that's the case.
Here we go! Only I trade one per $2500 for my clients and even more aggressively for myself. P. S. No I am not an idiot and my draw-downs are relatively moderate.
Hind sight isn't 20-20, calling this out after the fact, does nothing positive, both to one's mental acquity and sharpness, nor preparation for any future event. had one taken a short, or been in a short during that drop, or a bottom feeding long triggered on the way back up, then instead of seeing the net profit one would have expected print in their P&L, they would have gotten hit with their maximum stop-loss plus a few additional ticks worse, and wonder why? during those drops, pre-arranged stops, targets and retraces exceed their maximums, and surprisingly, one rarely ever is executed on the right side of their targets... so, perhaps having missed that next to impossible scenario, may have been best, from the perspective of preservation of (trading) capital
My purpose was just demonstrate that there can be a way to see the same event differently for some traders from how EMG saw it. And a tight stop would work perfectly for them, resulting in a nice profitable trade.
take that same day, on any contract that was heavily effected (YM, ES, NQ, etc.), and do a 30sec or 1min chart and widen it out and suppose that during those fractions of the second within the 13:09 pm EST/DST that the drop occurred, what do you see, that completely ruins your (not being insulting, but overly simplistic expectation) of a clean OCO showing a trade opened and closed within 1 min and showing an anticipated max target gain. let me suggest that you count the ticks on those horrid retraces that occurred during the drops, they exceeded 22 ticks on most contracts in some cases and in almost all cases of the retraces exceed the usual 10 ticks and even the generous 15 ticks.... so what would happen is one would be in, confirmed short, and more likely than anticipated, get wiped out with their max stop loss instead of their max target... also, there's something called "line trader", which auto submits a pre-arranged direction trade if that line in the sand is breached. one could have had that under that linear regression channel you showed, which would have triggered a short on that break in the channel that your elipse highlights... that's one LFT (low frequency trade) method that would have been fast enough to have caught that, sharp market drop. but then again, that's talking strategy, and, quite frankly has is own universe of risk, that usually exceeds one's trading risk tolerances
Emg, does: HFT = High Frequency Trading = highly educated trader imply LFT = Low frequency trader = low educated trader? Btw, i use NO leverage in trading. I don't see the need. In fact, I'm under leveraged!!!!
which one? we had one yesterday.according to hftvol he made a fortune off it.after the fact and without any proof obviousy