Scalping or illusion

Scalping or illusion

15 November 2016, 00:08
Jose Lourenco Claudio Junior

Illusion to win with this strategies is difficult to understand the problem.

The HFT systems do not use stop loss, or use large stop loss, while the take profit is short, this makes it unlikely an operation of losses, resulting in several small operations profitable before having the first negative operation. It may take a long time, with numerous small profitable operations before having the first negative operation, and this negative operation lose everything, or almost everything.
If the stop is short, something like 3 times the size of each take profit, it may be possible to support some negative operations without breaking, but do "bets" without an efficient strategy, in the expectation that the small profits ensure survival until a series of losses.

This allows the managers take their commissions while the investor gets fucked alone, but until then the Manager already filled their pockets with commissions.

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