Bonjour!
Does anyone have any strategy to manage risk if/when there is a trading halt? Has anyone had any bad experience and would like to share?
Commerce heureux!!
EricParticipant
Master
Hi Mansoor
I dont know exactly what you mean but i can give an example of reducing risk over the weekend
say you have a standard account and trade with proorder a system with few trades (like pathfinder) and you dont want to miss any potential big winners because of a weekend
say that the system buys 3 dax contracts on a friday then you hedge that by selling manually (force open) 3 contracts dax before the markets close and then exit short when market open after the weekend
it will of course cost a couple of euros but as always there is no free lunch in this game
Using guaranteed stops only, most of the risk is with my broker, IG.
The UK has got my little trading account covered, in the unlikely case of IG going immediately broke, right around the time of a forcefully interrupted trading session.
Ps. Moody’s expects the UK to default with a probability smaller than 0.000 in the next ten years.
Using guaranteed stops only, most of the risk is with my broker, IG. The UK has got my little trading account covered, in the unlikely case of IG going immediately broke, right around the time of a forcefully interrupted trading session.
I can use guaranteed stop in IG platform but ProRealTime does not have guaranteed stop.
Hi Mansoor I dont know exactly what you mean but i can give an example of reducing risk over the weekend say you have a standard account and trade with proorder a system with few trades (like pathfinder) and you dont want to miss any potential big winners because of a weekend say that the system buys 3 dax contracts on a friday then you hedge that by selling manually (force open) 3 contracts dax before the markets close and then exit short when market open after the weekend it will of course cost a couple of euros but as always there is no free lunch in this game
Eric, I could be totally wrong but isn’t it the same as closing your long contracts on Friday and re-open on Monday? You would be paying the same amount for the spread. Am I right?
EricParticipant
Master
Depends on type of system and how the conditions are set (if the signal is still valid on monday or you have to wait for the next one?)
If you have a trendfollowing system that dont trade very often and have 30-40% winning trades with a few big winners and many small losers
then you dont want to miss a big potential winner because of a weekend
