Prop Blowups, how common are they?

[lundy]

This is is pretty interesting considering I also lost over a mil in that few seconds that day too. I was short the emini sp, fed cut rate un announced. I even had stops in place, but I got filled on the high ticks of that spike.

I never made it back, I was pretty much fucked. I guess that was a pretty expensive lesson. Stops only work in liquid markets.

Aloha,
Jason Lundy

Quote from Rearden Metal:

January 3rd, 2001.
A day that will live in infamy.

Market was acting weak, and I was short heavily in all my accounts. Suddenly the fed cuts interest rates by half a point. WHAT THE FUCK? I let out a loud blood curdling shriek. There wasn't even a fed meeting that day, and this was the first rate cut of the cycle. Spooz instantly pop 50 handles. Instantly I find myself down 2 1/2 mil. Yes, $2,500,000.
I instinctively cover & reverse, ending the day down 'only' 1 1/2 mil.

Of course you don't believe me. I wouldn't believe me either, but it happened.

 

[trader#21]

this IS the scariest thread :eek:

 

[cactus_trader]

wasnt there a big post about a bright trader who blew out $2.2 mil or something?

 

[OTCkrak]

Quote from momo trader99:

WOW..the guy losses 1600 in a day...Problem with you swift pikers is that you think 1600 is BIG...

+1.. lol at 1600 being a big drawdown

 

[shortie]

Quote from Rearden Metal:

January 3rd, 2001.
A day that will live in infamy.

Market was acting weak, and I was short heavily in all my accounts. Suddenly the fed cuts interest rates by half a point. WHAT THE FUCK? I let out a loud blood curdling shriek. There wasn't even a fed meeting that day, and this was the first rate cut of the cycle. Spooz instantly pop 50 handles. Instantly I find myself down 2 1/2 mil. Yes, $2,500,000.
I instinctively cover & reverse, ending the day down 'only' 1 1/2 mil.

Of course you don't believe me. I wouldn't believe me either, but it happened.

Quote from artis74:

1.3 million short a zonal spread in New York power. 400k on the day they announced the stoppage of the 30 year.

any more first-hand experiences of that magnitude?

 

[puretruth]

Quote from lundy:

This is is pretty interesting considering I also lost over a mil in that few seconds that day too. I was short the emini sp, fed cut rate un announced. I even had stops in place, but I got filled on the high ticks of that spike.

I never made it back, I was pretty much fucked. I guess that was a pretty expensive lesson. Stops only work in liquid markets.

Aloha,
Jason Lundy

Isn't the emini s&p 1 of the MOST liquid markets around ?!

 

[sprstpd]

Quote from puretruth:

Isn't the emini s&p 1 of the MOST liquid markets around ?!

There have been a few posts of that intraday charts for that day. They are scary. The fed certainly ended a few careers on that move.

 

[BPtrader]

wow, most of these mf are not around anymore.

what an easy market it was those days, one could make money 30 minutes after a news announcement.

No wonder most of them are dead today.

 

[puretruth]

Quote from lundy:

I was short the emini sp, fed cut rate un announced. I even had stops in place, but I got filled on the high ticks of that spike.

Stops only work in liquid markets.

Aloha,
Jason Lundy

Isn't the mini s&p 1 of the most liquid markets around ?

 

[sprstpd]

Quote from puretruth:

Isn't the mini s&p 1 of the most liquid markets around ?

Just look at an intraday chart for that particular day and you'll see why stops didn't work.