Trading with a Stop Loss in the Futures Market is for Losers

So you all say MM or whomever hunt down your stop losses. This would indicate that SIM is significantly different than trading live. Correct?

 

Again, if a trader is manually using a mouse and a DOM to scalp markets for a tic, then yes he is asking for unsolicited prison sex. It isn't really about stops or capitalization - it's about competing against a number of automated trading systems designed to flip your over and take your money.

So don't scalp. Problem solved.

 

I'd say "logical" stop-losses like in line with obvious previous lows and even numbers (e.g. 1,600 in the S&P) are risky. Also cross-over points in the 50/200-day MAs etc., as they are so widely used. Key to successful trading is differentiation, not imitation.

 

Yep, the microstructure would be different, as it is evident anytime you place an order (especially if large).

However, for most "meaningful" strategies, which take their due time to work and allow for other participant's action to take effect, and have smarter hedging schemes, SIM would still be ok.

(Clearly, if you are attempting to go after a few ticks, which is nonsense anyway, of course the SIM would be totally misleading, as it would give a "neutral" environment, while the "real" one is not. But for "larger" strategies it's ok)

 

Once again, HFTs stopping out small traders over and over again.

 

Are you a bot? I'm starting to wonder as you're getting repetitive and illogical...

 

Those that place stops, stopped out







There is no doubt in my mind HFTs are beating up small traders

 

Yea, someone who went long 1685 today without a stop-loss sure felt much better as it dumped.

 

1 contract equal $100,000. hardly call a "dump." But, coming from a small traders mind, can't blame them from begin poor.


"Chickens (small traders) are coming home to roast"

 

Who needs futures if don't use the margin?