Another Day , Another Fat Finger Trade

Quote from Tea:

1.) If there is a spike in say the ES, fade the spike but don't trade the source of the spike (in this case ES). Instead trade YM or NQ etc. Otherwise you could end up exposed with a busted trade.

2.) Is it news or is it a mistake/spike? If its a news related move, it would probably happen in all indexes equally to a degree. If its a "fat fingered" spike, the move would happen in one index and then spread to the others. So by monitoring divergences between the indexes, you should be able to determine if the move was news related or a mistake.

3.) Don't leave distant stops in the market. This is a tough one, but if people are allowed to game the indexes with these "mistakes" - you may be better off not having stops in which provide the fuel for these wildfires.
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The problem is to determine which futures started the spike. Today, ES tanked heavily in my Tradestation charts. After about 3-4 seconds NQ tanked. While NQ was tanking ES almost recovered most of the losses. Later today, I checked intraday $NDX data and it had a 3-4 minute gap during this spike! What a mess.
 
Quote from chinook:



The problem is to determine which futures started the spike. Today, ES tanked heavily in my Tradestation charts. After about 3-4 seconds NQ tanked. While NQ was tanking ES almost recovered most of the losses. Later today, I checked intraday $NDX data and it had a 3-4 minute gap during this spike! What a mess.
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You would have to have a screen set-up showing all the indexes on a 1 minute chart with volume. Perhaps having ES (s&p500), YM (Dow), NQ (Nasdaq) and whatever other instrument moves with the indexes SPY, DIA, QQQ, DAX, GE.

It would have to be something handy that could be brought up for quick comparison.
 
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