How can that help if the trade was open a few minutes ago before the crash happens when the move was a small "acceptable" number of pips, the flash crash prevents closing/opening or being stopped due to stop loss, thats due to the liquidity scarcity, this is even written in the terms and conditions of some brokers, so the orders can still open and accounts wiped out if you are on the wrong side of the trade
unfortunately the code itself is a good idea but its not us who put the rules
Let's assume you found out that the market goes long 70% of time and short 30% of time. Now, you say you want to find a strategy that uses both Buy and Sell orders, in order to take advantage of both situations.DA!!!
You present a seemingly (An illusion in my opinion) statistical advantage, and then want to dismiss it. The correct questions were how should I treat the 70% of the time trend markets, what does it mean that most of the time the market trending - can it be that a trend exist for 3 years and then side market for 5 years and still it falls into this statisitics? Sure. Can I do something that can resist a wrong direction for 3 years? Probably not, and not worth it. This is because the phrase "70% of time" is too wide to use, as time is ever expanding, ever lasting. If you don't have time frames, well - you end up wanting to use both directions. both go long and short.
The best and the only way to protect an account is to use stops ...
With some extra costs, hedging in your sense may only be the stop of amateurs who are not psychologically ready to trade.
in case of gap or flash crash there is no guarantee for stop loss the best way is stop placing any new trade until the end of such bad situations.
im dead curious of how can you predict a flash crash when the criteria know for this type of market move is 0% well-known
No move restriction will ever detect that "when the order is an hour opened"
You should just think it with a tiny bit logic.
I did read what you put earlier, what im thinking is that this will not predict a crash before it happens otherwise it won't be called a "flash crash"
The USDCHF has a move of 1-7 or 8 pips per minute at anytime of the day either its a regular move or not so don't see how it can be an indication for this
That was a 1 minute drop of 40%
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