Quote from limitdown:
take that same day, on any contract that was heavily effected (YM, ES, NQ, etc.), and do a 30sec or 1min chart and widen it out and suppose that during those fractions of the second within the 13:09 pm EST/DST that the drop occurred,
what do you see, that completely ruins your (not being insulting, but overly simplistic expectation) of a clean OCO showing a trade opened and closed within 1 min and showing an anticipated max target gain.
let me suggest that you count the ticks on those horrid retraces that occurred during the drops, they exceeded 22 ticks on most contracts in some cases and in almost all cases of the retraces exceed the usual 10 ticks and even the generous 15 ticks....
so what would happen is one would be in, confirmed short, and more likely than anticipated, get wiped out with their max stop loss instead of their max target...
also,
there's something called "line trader", which auto submits a pre-arranged direction trade if that line in the sand is breached.
one could have had that under that linear regression channel you showed, which would have triggered a short on that break in the channel that your elipse highlights...
that's one LFT (low frequency trade) method that would have been fast enough to have caught that, sharp market drop.
but then again, that's talking strategy, and, quite frankly has is own universe of risk, that usually exceeds one's trading risk tolerances
