Are you ready to meet the black swan? - page 2

[Alexey Volchanskiy]

Artyom Trishkin:

I noticed movements in all the pairs and managed to close one negative position, which was covered by another positive one, while earning some money as well. Only the brokerage firm said it was ruined and kept all of several thousand dollars. Uh-oh... I can't even remember what kind of firm it was - their pams were quite tasty in terms of conditions, which is why I opened an account there.

Then RVD Markets went bankrupt and took my deposit, good thing it was small. And the English branch of Alpa collapsed too, and many others.

[Yuriy Zaytsev]

Nikolai Semko:

What are your thoughts on black swan protection techniques in EAs? And is it realistic to catch the wave?

It's like looking for protection against the end of the world. In the history of forex this kind of drop in USDCHF was the only one!

The best way is an adequate SL and an inadequate take profit in a few figures preferably closer to the point where the swan song peaks

[Artyom Trishkin]

Alexey Volchanskiy:

Then RVD Markets went bankrupt and took my deposit, good thing it was small. And the English branch of Alpa collapsed too, and many others.

Ahh! There. He was.

[Yuriy Zaytsev]

Alexandr Saprykin:
There is no way to protect yourself from such an event. If you got it, you got it.

What if there was an SELL without a TP?

You enter the account at the very bottom and take a take or you can use your hands to cut.

[Alexandr Saprykin]

Yuriy Zaytsev:

What if there was an SELL without a TP?

You enter the account at the very bottom and take a take or you can use your hands to cover.

And if such a swan in the brokerage house at the time, they get mad and do not let you close the sell?

[Yuriy Zaytsev]

Alexandr Saprykin:
What if in such a swan at the time the brokerage company stays away and does not allow to close the sell?

I was given closure, there was no problem.

What if there was a take on the bottom ?

Well, if they don't let us close, then the best solution is another very cool mechanism.

Description of a very cool mechanism:

1 it should be personally configurable

2 allow to close any trades if they are in surplus

3 allow to close trades if they are in the red.

[Aleksey Vyazmikin]

The minimum protection is technical risk limitation. The idea is not to keep all the money for trading on one trading account, but better to keep it outside the DC at all, and put it into action as needed. But brokerage company should quickly replenish the account in this case. I am amazed of those people who trade with 0.1 lot on Forex, with a stop-loss of 30 points and $3000 deposit. Forex is not the stock exchange, there is a huge leverage and there is no point in keeping a huge deposit and fear drawdown, the drawdown here - lying dead weight money, while on the stock exchange it is necessary GO, if you compare the same volume. If you have lost 300, you get your breath back, make another one in a couple of months, that's all the protection you need.

[Alexey Volchanskiy]

Artyom Trishkin:
Ahh! There. It was.

and it was a great DC for scalping at the time...

[Alexandr Saprykin]

Yuriy Zaytsev:

I was given closure, there was no problem.

What if the take was at the bottom ?

Well if not allowed to close - then the best solution would be another very cool mechanism.

Description of a very cool mechanism:

1 it should be personally configurable

2 allow to close any trades if they are in surplus

3 Allow to close trades if they are in deficit.

That's exactly what they "gave".

The mechanism is ideal for making money, but not as a trader

[Sergey Savinkin]

The topic brought to mind an analogy. Quote from an internet article:

"But by far the most effective means of guaranteeing to avoid contracting an STD is total sexual abstinence."