Trading with a Stop Loss in the Futures Market is for Losers
- Thread starter emg
- Start date
Again, if a trader is manually using a mouse and a DOM to scalp markets for a tic, then yes he is asking for unsolicited prison sex. It isn't really about stops or capitalization - it's about competing against a number of automated trading systems designed to flip your over and take your money.
So don't scalp. Problem solved.
So don't scalp. Problem solved.
I'd say "logical" stop-losses like in line with obvious previous lows and even numbers (e.g. 1,600 in the S&P) are risky. Also cross-over points in the 50/200-day MAs etc., as they are so widely used. Key to successful trading is differentiation, not imitation.
Yep, the microstructure would be different, as it is evident anytime you place an order (especially if large).
However, for most "meaningful" strategies, which take their due time to work and allow for other participant's action to take effect, and have smarter hedging schemes, SIM would still be ok.
(Clearly, if you are attempting to go after a few ticks, which is nonsense anyway, of course the SIM would be totally misleading, as it would give a "neutral" environment, while the "real" one is not. But for "larger" strategies it's ok)
Quote from emg:
No doubt in my mind HFTs are stiill stopping out small traders in the es. This is what u get for placing stops
http://www.chicagotribune.com/busin...-data-leak-20130424,0,4124230.story?track=rss
Price action and TA methods are encouraging small traders to place stops and trade as little as $5000. In other word, they brain draining small traders, while the HFTs, higher educated traders easily profiting over small traders expense.
"Chickens (small traders) are coming home to roost"
Minimum to trade in the es $500,000. 1 contract equal $100,000
Once again, HFTs stopping out small traders over and over again.
Are you a bot? I'm starting to wonder as you're getting repetitive and illogical...
