Yeah news doesnt come out as often in stocks, they just halt them, My view on stops is the following, pre announcement you should square up, let hte news come out, watch for initial reaction, which is often the wrong one, wait wait wait buy/sell if market is retracing/bouncing back to pre announcemetn levels. This way you avoid headaches etc...related to trading the news. Thats what I did when I was trading for a bank and thats what I still try to do on my own. Makes life more enjoyable, less stressful if not its just gambling
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There are no guaranteed Stops. EVER.
- Thread starter Remiraz
- Start date
the straddle technique is easy enough to get around for any broker. just open the spreads 10-20 pips - whatever is necessary - for a few seconds to trigger all those orders and their stops as well, pocket once or twice the wider spreads, and clear the order book seconds before the announcement.
i think thats 100% fair game.
in my experience with brokers who guarantee stops, if you are in the market with a fair trade - and not some sort of rip-off-my-broker type straddle strategy, brokers are no more stupid than traders on avg... - basically they DO guarantee and honor the stops.
or maybe my mates and i have just been lucky...
i think thats 100% fair game.
in my experience with brokers who guarantee stops, if you are in the market with a fair trade - and not some sort of rip-off-my-broker type straddle strategy, brokers are no more stupid than traders on avg... - basically they DO guarantee and honor the stops.
or maybe my mates and i have just been lucky...
Quote from 2cents:
the straddle technique is easy enough to get around for any broker. just open the spreads 10-20 pips - whatever is necessary - for a few seconds to trigger all those orders and their stops as well, pocket once or twice the wider spreads, and clear the order book seconds before the announcement.
i think thats 100% fair game.
in my experience with brokers who guarantee stops, if you are in the market with a fair trade - and not some sort of rip-off-my-broker type straddle strategy, brokers are no more stupid than traders on avg... - basically they DO guarantee and honor the stops.
or maybe my mates and i have just been lucky...
When stops are guaranteed and honored, its during normal times when stops have no problem getting thru in the first place.
Pls tell us which broker you're using...i'll love to news straddle them for free cash. Even if they open the spread, we can still straddle with 5 pips stops. The winning side will be in the green 100-200 pips while the losing side will be "guaranteed" stopped at -5.
i don't know if you noticed that last year after they stopped the guaranteed stops after the announcement their platform (gft) freezes for about 5-10 minutes while they sort out order. I would bet a $1000 they use that time to fill the worst possible price for each order. since they changed tier policy it is a license to adjust your stops and there isn't a thing you can argue. Its a license to print money on there part. I had a trade a couple months ago with the trade figures and i was up 70 pips in the trade before the announcement so i gambled and left the trade open with a 10 pip stop if it went against me. It did go against me for 60 pips and the stopped me out 50 pips above my stop to the exact high of the retracement spike. I called them to complain they said there are no guarantees .
ITS US AGAINST THEM BELIEVE THAT
ITS US AGAINST THEM BELIEVE THAT
Quote from daentay:
go ahead and try nowadays with the 5/10 stop in both direction strategy, you'll be whipsawed to death.
even a 30 pip stop wont be sufficient nowadays and fridays doesnt have 100 pip moves.
a lot of people did and made a lot of money, thats why firms like refco/fxcm had to rollback trades + change their guarantee stop rules to avoid going bankrupt.
say u used a 5 pips stop and the news didn't move the market 100-200 pips. u just cancel your orders or eat 5-10 pips losses. (thanks to guaranteed stops)
one 50-100/200 pip move and u'll earn back all those 5-10 losses. hardly "whipsawed to death".
guaranteed stops are money tree dude.
Hey Long or Short:
Ok, I won't ask you which IB you worked for, but do you mind sharing with us that in your opinion which Forex retailers are ones to absolutely avoid or which one(s) you would be comfortable enough in trusting with your own cash?
If you've already answered this question in another thread, I apologize for having duplicated the question.
Thanks for your input.
Ok, I won't ask you which IB you worked for, but do you mind sharing with us that in your opinion which Forex retailers are ones to absolutely avoid or which one(s) you would be comfortable enough in trusting with your own cash?
If you've already answered this question in another thread, I apologize for having duplicated the question.
Thanks for your input.