EUR/CHF wipeout/margin call ... negative balance ... what to do?

[ExperiencedJoe]

again, brilliance abounds. Caveat emptor. I have nothing to add beyond Johno1's post.

If large number of people are caught out by the risks, then the fault lies with the shop for not sufficiently informing their customers. In this situation, the customers are entitled for refund, because the "products" sold to them are beyond their ability to use and not fit for purpose.

An analogy for this situation would be a shop selling anti-tank missiles to people and claiming the small prints signed by the customers relieves the shop from any responsibility. This argument cannot stand up in court. The shop is responsible if it mis-sells a product. The effect of this is to mislead.

In fact the financial "industry" is well known for the frequent practice of mis-selling products. This case is but another. Like other cases, in the end, the customers will be compensated.

 

[hyperscalper]

I can make enough for me, on my Ipad Mini on a good day I'll add, with just a FXCM spot account and TradeInterceptor.

Fancy toys do sound nice but hey

IPad mini? Geez, I gotta have an array of about 6 displays in full view, failover backup networks, co-located server based execution, you name it..... There's no rest for the wicked Often I gotta admit I'm so "allergic" to market exposure that it limits my trading effectiveness.
G.T. HyperScalper

 

[Turveyd]

IPad mini? Geez, I gotta have an array of about 6 displays in full view, failover backup networks, co-located server based execution, you name it..... There's no rest for the wicked Often I gotta admit I'm so "allergic" to market exposure that it limits my trading effectiveness.
G.T. HyperScalper

2 Montiors 23" on the PC, but most of my trades are at clients or mates on the ipad, so got to keep it simple!1

G T too!

 

[SimpleTrades]

I think most people who trade fail to recognize what they're actually trading. An earlier poster mentioned he was exposing himself to little risk by scalping 100,000 or 200,000 units. Nonsense. Do you understand what you stand to lose?

$200,000 x pair price, denominated in base currency of your trading account. How much money would you have lost with the sudden surge in CHF?

 

[hyperscalper]

I think most people who trade fail to recognize what they're actually trading. An earlier poster mentioned he was exposing himself to little risk by scalping 100,000 or 200,000 units. Nonsense. Do you understand what you stand to lose?

$200,000 x pair price, denominated in base currency of your trading account. How much money would you have lost with the sudden surge in CHF?

I think the point of my post was that my total exposure times in the market are typically less than 3 minutes, and also, that position is built up with staggered prices for better VWAP. The probability of hitting a Swiss crisis becomes vanishingly small when exposure durations are kept short like that, in a micro scalping or day trading type of scenario.

OF COURSE, it "could" still happen, but then again, anything "could" happen. I'm "flat" 98% of the time, until I strike with another relatively brief exposure trade or scalp.

Good Trading !
HyperScalper

 

[SimpleTrades]

I think the point of my post was that my total exposure times in the market are typically less than 3 minutes, and also, that position is built up with staggered prices for better VWAP. The probability of hitting a Swiss crisis becomes vanishingly small when exposure durations are kept short like that, in a micro scalping or day trading type of scenario.

OF COURSE, it "could" still happen, but then again, anything "could" happen. I'm "flat" 98% of the time, until I strike with another relatively brief exposure trade or scalp.

Good Trading !
HyperScalper

This is one of those rare cases where even you would have been caught. It all happened way too quickly. It seems odd that you give these big numbers yet talk profits per trade of less than $20. Each pip is $10 on a full lot. Are you grabbing 1 or 2 pips at a time? I'm grabbing $10 to $15 on mini trades of less than 3000 units.

 

[hyperscalper]

This is one of those rare cases where even you would have been caught. It all happened way too quickly. It seems odd that you give these big numbers yet talk profits per trade of less than $20. Each pip is $10 on a full lot. Are you grabbing 1 or 2 pips at a time? I'm grabbing $10 to $15 on mini trades of less than 3000 units.

Good questions. Well, I wish we could agree that "could" is not the same as having any significant probability at all, given my trading style, and given that I would be unlikely to choose a CHF Currency Pair due to its general lack of volatility (except once every decade or so...)

Yes, I reliably "grab" anywhere from 1.8 to 5 pips at a time, using highly specialized triggering software, automatic target placements, highly tuned analytics, all designed for "micro scalping" with "win rates" of about 97%. Yep, that's what I do... So, to make it "worthwhile" on each "strike" it's best to push up Lot Sizes. But I acquire Lot Sizes by stacking staggered Limit Orders, not all of which are filled. This is a VWAP optimization technique similar to what Market Maker does on the Book.

Yesterday one trade was in and out of the market with a 2 pip profit in 1.5 seconds. Now, that's ridiculous, but on LMAX this is what is possible. It's not the best way to trade, but sometimes things are just that fast.

So, yep, that is precisely what I do, but I invented all of it myself; there's nothing else out there anywhere, which can reliably permit micro scalping like that for "normal" "retail" traders.

Good Trading, or should I say, Scalping?
HyperScalper

EDIT: added the image of that scalp I referred to.

 

[Turveyd]

Good questions. Well, I wish we could agree that "could" is not the same as having any significant probability at all, given my trading style, and given that I would be unlikely to choose a CHF Currency Pair due to its general lack of volatility (except once every decade or so...)

Yes, I reliably "grab" anywhere from 1.8 to 5 pips at a time, using highly specialized triggering software, automatic target placements, highly tuned analytics, all designed for "micro scalping" with "win rates" of about 97%. Yep, that's what I do... So, to make it "worthwhile" on each "strike" it's best to push up Lot Sizes. But I acquire Lot Sizes by stacking staggered Limit Orders, not all of which are filled. This is a VWAP optimization technique similar to what Market Maker does on the Book.

Yesterday one trade was in and out of the market with a 2 pip profit in 1.5 seconds. Now, that's ridiculous, but on LMAX this is what is possible. It's not the best way to trade, but sometimes things are just that fast.

So, yep, that is precisely what I do, but I invented all of it myself; there's nothing out there which can reliably permit micro scalping like this.

Good Trading, or should I say, Scalping?
HyperScalper

I wondered the same, why such a small profit for your setup as you claim to be using a lot of lots.

So you setup a spread of orders where you think the market will turn, deeper it goes more orders you get, what happens when it continues down, breaks support and dumps 20pts ? real quick ? tight SL and all out ?? 97% win rate would suggest not as too many spike and reverses where that would cost you, or not ??

I was in and out in under 1 second the once, I placed order, it dumped 0.1seconds later straight though SL LOL but hey

 

[hyperscalper]

I wondered the same, why such a small profit for your setup as you claim to be using a lot of lots.

So you setup a spread of orders where you think the market will turn, deeper it goes more orders you get, what happens when it continues down, breaks support and dumps 20pts ? real quick ? tight SL and all out ?? 97% win rate would suggest not as too many spike and reverses where that would cost you, or not ??

I was in and out in under 1 second the once, I placed order, it dumped 0.1seconds later straight though SL LOL but hey

OK, I merely got into this topic because it is an extreme way of limited "market exposure time", but this is not for ordinary traders. Most traders are forced to be exposed for significant periods of time due to the use of "swing" or other medium to long term approaches.

I can't really discuss how my version of "micro scalping" works, but in a nutshell, specific "events" are detected which enable "add to position" so it isn't as simple as just spitting out a "cluster" of price offset Limit orders. Of course, I can do that, and sometimes I do, but I don't take my full position that way. So let's say I'm "nibbling" into a Standard Lot ($100k) position, I might "strike" on a significant trigger event, thus placing a Limit (maybe 10k) designed to fill quickly, backed up by another limit (10k) perhaps a PIP further out. Once this "cluster" fills, I'm then looking for the next "significant trigger event" and if I "lather, rinse and repeat" that 5 times, then I am in for 100k notional Currency Units.

But I never, repeat NEVER, go "all in" at one single price. This is for the obvious reason that price can, and often does move against me, before it moves forward. Plus, I never, NEVER "chase the price", as everything is a pullback. And thirdly, often before I am able to obtain my desired maximum exposure, the price moves forward to Target, so I am happy with less "equity exposure" than I would have preferred, but I am also...

...always keeping my transactions relatively short so my "market exposure time" is also kept to a minimum.

You can PM to learn more, but it's all about several inter-related "synergistic" techniques which both limit "exposure time" and limit "equity over-exposure too soon" and it's all about gaining the absolute maximum cumulative and VWAP aggregate Price Advantage on every single entry by using 1) intelligent "reactive" triggering, and also 2) wholesale pricing advantage which is why this is on LMAX.

Sorry, that got a bit off-topic, but it's all about reducing the amount of time exposed to Market volatility events like the Swiss Franc event, due to fundamental ECB and Euro turmoil.

G.T.
HyperScalper

 

[Turveyd]

OK, I merely got into this topic because it is an extreme way of limited "market exposure time", but this is not for ordinary traders. Most traders are forced to be exposed for significant periods of time due to the use of "swing" or other medium to long term approaches.

I can't really discuss how my version of "micro scalping" works, but in a nutshell, specific "events" are detected which enable "add to position" so it isn't as simple as just spitting out a "cluster" of price offset Limit orders. Of course, I can do that, and sometimes I do, but I don't take my full position that way. So let's say I'm "nibbling" into a Standard Lot ($100k) position, I might "strike" on a significant trigger event, thus placing a Limit (maybe 10k) designed to fill quickly, backed up by another limit (10k) perhaps a PIP further out. Once this "cluster" fills, I'm then looking for the next "significant trigger event" and if I "lather, rince and repeat" that 5 times, then I am in for 100k notional Currency Units.

But I never, repeat NEVER, go "all in" at one single price. This is for the obvious reason that price can, and often does move against me, before it moves forward. Plus, I never, NEVER "chase the price", as everything is a pullback. And thirdly, often before I am able to obtain my desired maximum exposure, the price moves forward to Target, so I am happy with less "equity exposure" than I would have preferred, but I am also...

...always keeping my transactions relatively short so my "market exposure time" is also kept to a minimum.

You can PM to learn more, but it's all about several inter-related "synergistic" techniques which both limit "exposure time" and limit "equity over-exposure too soon" and it's all about gaining the absolute maximum Price Advantage on every single entry by using 1) intelligent "reactive" triggering, and also 2) wholesale pricing advantage which is why this is on LMAX.

Sorry, that got a bit off-topic, but it's all about reducing the amount of time exposed to Market volatility events like the Swiss Franc event, due to fundamental ECB and Euro turmoil.

G.T.
HyperScalper

It's trading related, which is rare so

I do similar, I've got an area it should turn in, my SL exit but often take a 2nd position 1/2 way there, rude to turn it down, just got to keep that madness under control.

Surpised your still dealing with 10K ( $1 per pip right ? ) positions and not 100K positions, still building up I guess, spent too much on hitec computer equipment.