There are no guaranteed Stops. EVER.

Quote from Remiraz:

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.
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Of cos we see that dude. Can you see when are the times that this method is working? When market is in consolidation or trending mode?

The way I see it is this,
1) number of fridays (year) = 52, - NFP ,ISM, GDP
2) Position taken 5% equity - margin up to u ( you can take up to 19 losses in a row)

if it makes sense to you, go ahead. Nobody is stopping you.

best regards
 
Quote from daentay:

Of cos we see that dude. Can you see when are the times that this method is working? When market is in consolidation or trending mode?

The way I see it is this,
1) number of fridays (year) = 52, - NFP ,ISM, GDP
2) Position taken 5% equity - margin up to u ( you can take up to 19 losses in a row)

if it makes sense to you, go ahead. Nobody is stopping you.

best regards
More...

One thing I can add to the demise of the guaranteed stop scenario

-FXCM/Refco/Forex.com broker
-client (Institution, indi broker)
-Market (currenex,reuter,hotspot, whoever)

Client buys at 1.2000, stop 1.2005, TP 1.2100
FXCM takes the trade

Before FXCM enter market, market shot to 1.2020,
or market spread widens bid 1.2000 ask 1.2010.

--
if it is a sure fire way, the brokers would have done it themselves.

Regards
 
Quote from daentay:

Of cos we see that dude. Can you see when are the times that this method is working? When market is in consolidation or trending mode?
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Quote from daentay:


if it is a sure fire way, the brokers would have done it themselves.
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This IS a sure fire way. Brokers can't do it because they know there aren't guaranteed stops.

Feel free to check MoneyTec for posts dating (i think) 2004 september during that NFP. A lot of people have been doing this stunt for some time. Last yr sept's NFP was a super big hit because its a 200 pip gap and we're heavily loaded with lots on both side.

You'll see a lot of posts with brokerage statements detailing straddles with max leverage on both side exploiting the "guaranteed stop". Imagine 10 lots straddled both sides. Losing side got "guaranteed" for -5 pips loss per trade while winning size go up to +150 pips per lot. People earned $10-50k in like 1 mins. XD

You'll also see a lot of complain threads about Refco/FXCM reversing those trades to save their skin. After that incident, they edited their guaranteed stop policy so that it basically means "no guaranteed stops". (okay the real case is "stops are guaranteed unless in high volatility situations" which basically means u're guaranteed until u aren't. XP)

Oh those good old days of FX where easy money still exists....FX is really the wild wild west of trading~ :cool:
 
Dear Mr. Ramirez

Author is very pleased for your statement about legacy
company as REFCO stop loss policy .
But what can you say about stop loss by pure agent Fx?

Hotspotfx and IB ?

Author would very pleased for comment
 
okay they lost on a few days. What about the time prices whipsawed and stopped out people on both sides. Straddles only worked maybe 30 %( a home run 1 out of 10) of the time and the rest was whipsawed out They cant really expect to win 100% and not take any losses.I think they do !!!!!
 
Quote from watchdaride:

okay they lost on a few days. What about the time prices whipsawed and stopped out people on both sides. Straddles only worked maybe 30 %( a home run 1 out of 10) of the time and the rest was whipsawed out They cant really expect to win 100% and not take any losses.I think they do !!!!!
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u see the moment news spiked one side will stop out at -5 pips (guaranteed hehe) and the other side will win. we'll then t/p immediately. if the spike is NFPish +100pips then we win big. if the spike is 20-30ish whipsaw spike, we win small. ole to guaranteed stops!

ever wondered why refco changed its guaranteed stop policy? ^_^
 
Quote from milstar:

Dear Mr. Ramirez

Author is very pleased for your statement about legacy
company as REFCO stop loss policy .
But what can you say about stop loss by pure agent Fx?

Hotspotfx and IB ?

Author would very pleased for comment
More...

I have never used Hotspot FX before. IB doesn't guarantee stops.

If your broker says they "guarantee your stops", chances are you can straddle the crap out of them lol.
 
Dear Sir

Author is very pleased for your answer.

IB not warranted stop .In this case trade EC future
more competitive ...
IB Hotspotfx EC future
Initial Margin 0.02 0.02 lower as 0.01
Liq .margin 0.01 0.01 =
Stop NW NW NW
Dept of the
Market yes yes multiple software

If fX indutry with more as 13 mln account have only
2 pure agent ,which not warranted SL ,where is advantage
of FX over EC future ?


Author would very pleased for answer.
 
Quote from milstar:

Dear Sir

Author is very pleased for your answer.

IB not warranted stop .In this case trade EC future
more competitive ...
IB Hotspotfx EC future
Initial Margin 0.02 0.02 lower as 0.01
Liq .margin 0.01 0.01 =
Stop NW NW NW
Dept of the
Market yes yes multiple software

If fX indutry with more as 13 mln account have only
2 pure agent ,which not warranted SL ,where is advantage
of FX over EC future ?


Author would very pleased for answer.
More...

There isn't. EuroFX Futures has always been a better instrument for those trading Forex. 1 pip spread constant anyone?

In the case of IB, their EC comms is about $6 RT per lot. 1 lot = 100k size. For those doing 250k size or greater they can execute on IDealPro for a comm advantage.
 
Dear Sir

Author is very pleased for your message

...you wrote one EC lot 100k

125K and that is important in case ot tactic "wih spread"
one tic = 12.5$ -commission fees

Who knew pure agent broker for EC with Depth of the market and commission fees lower as 5 $ per roundturn ?
 
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