dc - other than the first 50 minutes this morning, this has been nothing but panic all day. The US are still selling everything except for the 5 minute bounce at 2:30pm ( so I won't eat all of my hat). Programmed selling all day. Until I see the US rally from 2:30pm to 5:00pm, then the selling will continue.
Smart move. I generally sim for 3 months before putting real money behind any strategy but have had strategy's not work for me after switching to live trades for no apparent reason other than my own perception.
IMHO It would be nice to have entry criteria locked down or close to a mechanical process but that's much easier said than done, most strategies I have seen success with have some discretionary element, particularly using price action.
pb8856 - you need a strategy for strong trends, weak trends, capitulation days (like today), narrow range days (like wednesdays where the FTSE stays in a 20 pt range), wicks and tails days, wide trend channels, news events, economic data releases. And you have to be ready to change strategies when required and be able to recognise that the market has changed ( and that last one only comes from experience of watching the price action).
If anyone ever wanted to see what a futuristic war between robots looked like, then this mornings price action is a perfect example. The battle would be brutal and almost too quick for the human eye to watch. Trading has almost mirrored yesterday morning. One way up open. Reversal. Then one way down. But with loads of whiplash. It's tradeable if you are willing to move your stops out by a factor of 5. But I am not doing this live, it could really hurt me if I mistime it by a few seconds. On the sim I am up £4,000.00 and that is 1 to 2 contracts only.
These really are stupid markets. No logic to them at all. Just follow the lemmings over the cliff. This has all the potential of a flash crash. Just like what happened in May 2009. These bot trading programmes haven't been regulated since then and a flash crash could trigger again at any time. Best thing to do is stand aside and watch.