4 helps, nearly always a play on, with 2 long periods of no plays = losing focus, I scalp 4.
Ways to hedge against a heavy loss in extreme situations for a scalper
- Thread starter CALLumbus
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4 helps, nearly always a play on, with 2 long periods of no plays = losing focus, I scalp 4.
I do trade options, but don't get involved in religious wars over who's a good/bad broker. There are dozens of relevant threads on ET.
i did not say put a stop there i said prepare to lose at least half in force majeure event
Could you ballpark your time frame(s) when referring to scalping?
Several means more than one
... in my case 2-3. I dont have 5 internet connections and 9 cellphones lol.Short term, for me: best case (which is most of my trades): less than a minute, many are closed after less than 10 seconds, on average probably something around 20-30 seconds. Sometimes I might get a position I dont really like that I have to manage then and hold for a few minutes, but that are less than 10% of my trades.
I dont trade them at the same time any more, did that in the past, but now I like to focus mostly on one instrument, usually ES and/ or NQ. Sometimes some FDAX and/ or FESX in the morning, but since I prefer to do offer stuff than just trading with my day I now try to focus my stuff on the US RTH open (1-2 hours) and close (about 1 hour).
It also depends on your style of trading, if you do this orderflow kind of stuff in instruments like ZN and Bund, you have to be very focused and pay attention to every tick and print. Other styles of trading (which i prefer) dont require that much attention to every tick of the market, and you have more time for trading other instruments, watching porn or playing Battlefield.
Seems like the solution would be a smarter trading client (software).
As you're entering into a position, the client could automatically keep track of that position and update a countering STOP position that is updated each time you update your position. So, for example, you buy 100 at 100, it creates a STOP for 100 at 90 (or whatever you define). You add 20, it adds 20 and updates the STOP. That way if you lose your line the updated STOP is already there and you didn't have to waste clicks keeping it up to date.
As you're entering into a position, the client could automatically keep track of that position and update a countering STOP position that is updated each time you update your position. So, for example, you buy 100 at 100, it creates a STOP for 100 at 90 (or whatever you define). You add 20, it adds 20 and updates the STOP. That way if you lose your line the updated STOP is already there and you didn't have to waste clicks keeping it up to date.
This sounds good, and similiar to a server-side OCO solution. The problem is again when there is a blackout or similar at the exchange, or if there is a huge gap. No kind of stop will probably help you in such a case. I will need some kind of insurance (not sure if this exists) or options strategy for this kind of events.
I will have some closer look into hedging with options. Maybe a broker that can handle both futures and options might be a good idea, so there would be several possibilities to hedge a position from another FCM once it cannot be accessed anymore.
Tradestation securities might be a good candidate for this ? Of course, Interactive Brokers could offer the widest range of instruments for a backup and hedging account, but I just dont like em very much
I don't see how there could be a solution for a huge gap. I mean, if today, right this moment, a nuclear bomb landed somewhere, the people with bids on the market would immediately cut those bids in half (for example). There's simply no way to get out of a trade at the price that was there moments before ... no technology, no anything, the bids just changed, there's no do over for that. I don't see how anyone can "solve" that problem, it's fundamental to the way the market works. Like you said, the only thing you're left with at that point is some kind of a hedge, an options position of some kind or etc. Maybe there's a price point where the options are far enough out of the money that they aren't expensive, but would get fat and ready for harvest if the market gap was large enough to need them ? Out of the money and really close to expiration ?