http://www.zerohedge.com/article/44...dq-and-broken-circuit-breakers#comment-607661
How´s this still possible ?
How´s this still possible ?
From $44 To $4 In Less A Second: Today's Flash Crash
- Thread starter ASusilovic
- Start date
So did the circuit breaker work or not? If not , who is to say that the dow can't drop 2000 points in one day?
We get another flash crash and any retail investors left will either stop putting new money in the market all together or they will do so without any stops. Our market structure is broken. How do we fix it if the circuit breakers aren't doing shit?
We get another flash crash and any retail investors left will either stop putting new money in the market all together or they will do so without any stops. Our market structure is broken. How do we fix it if the circuit breakers aren't doing shit?
Quote from ASusilovic:
http://www.zerohedge.com/article/44...dq-and-broken-circuit-breakers#comment-607661
How´s this still possible ?
this has happened several times in the recent past. i post all of them in stock777's hft thread in the trading forum.
Backtesting such an algorithm must be a real thrill.
The circuit breaker did in fact go off if you look at my chart there is a gap there between 12:57 and 13:02.
But if you also look at the data you can see the circuit breaker did not go off until after it had already recovered.
I still don't see those really low ticks though. Maybe they were already canceled by the time I brought up the chart. In any case, even at 38.38 it would have tripped the circuit breaker (10% in 5 minutes is the limit). Apparently the circuit breaker stuff is crap though, way too slow.
But if you also look at the data you can see the circuit breaker did not go off until after it had already recovered.
I still don't see those really low ticks though. Maybe they were already canceled by the time I brought up the chart. In any case, even at 38.38 it would have tripped the circuit breaker (10% in 5 minutes is the limit). Apparently the circuit breaker stuff is crap though, way too slow.
many ETFs literally lost nearly 100% of its value that day. all busted trades. ETFs are not the same as equities, they are merely a promise to deliver as opposed to owning actual shares. so YES it can happen again.