Monday, April 21, 2014

Stops-- an actual example of HFT slayings

Rethinking stops has caused me not to leave stops.  Here we have CORN selling off 10% hitting a low of 31.08.  People on message boards, twitter, stock twits have complained heir stops got hit some at substantial losses.  This 10% move lasted  mere seconds but it wiped out numerous stops. 

This appears to be the same type of algorithmic trading that caused the flash crash  due to HFT.   I'm convinced that especially in thinly traded markets stop orders should not be entered.  The approach of using stops only if closing below the price it likely the approach I will take from now on.

No comments:

Post a Comment