Dont Blame The SB

[TomTom]

Over the past few months, I for one have been anti SB and remain anti SB for my own reasons. Mainy that DA is more profitable and one gets to trade the real market.

While it is true SB Firms have skewerd quotes and do stop hunting. In the majority of the cases it is when the actual market is at or near to the relevent quote. The solution is to have wider stops this accounts for noise/sudden movements.

So to summerise, for people who blame SB for taking out stops ( it has happened to me dozens of times some times when the SB firm skewered there quotes to take out my position at the low of the day when in fact the market never reached that price/quote ) looking back I was the one to blame for using the SB Firms.

There have been 100s of postings here about how Bent,Dodgey,Unfair,Making the rules up as they go along, even not enough volume on Forex, which is an unbelieveable statement.

Think about who is really to blame before pointing the finger at SB Firms.

For existing traders who these anticks has not happend to yet its only a mattor of time before you will become a casulty this is a fact.

DONT BLAME THE SB FIRMS


In 2009 Im considering opening a SB FIRM, I will call it 'Steal4Free' or 'MargerineSpreads' Or 'F**kyou Index' and see how many custermers I can get away with by offering Zero Spreads,Intrest On Capital ( above 25,000,000) and guratenteed opening prices/quotes. ( but will not mention when it comes to closing )
Have terms and conditions that covers my SB Firm for any eventuality so I can liquidate postions at liesure.

So Who will become a custermer ?

P.S. Clients funds held with us will not be our responsibility, as custermers funds will not be safe if we choose to hold the with a Bank ( that we own ) ofshoure outside the EU.

 

[UKtradergirl]

Don't forget to include the ability of your company to remove funds directly from the customers card if the position results in a negative balance. Also, offer a direct debit facility for losing traders so that they will always have funds available to trade with each month.

 

[UKtradergirl]

Don't forget to include the ability of your company to remove funds directly from the customers card if the position results in a negative balance. Also, offer a direct debit facility for losing traders so that they will always have funds available to trade with each month.

I have another idea. Introduce a trailing stop loss. Now that is original- i haven't seen that anywhere yet. Unique in that you can guarantee someone will never be stopped out again.

Just to clarify: i'm talking about a kind of 'anti- stop loss'. The opposite of what you would get at IGindex for example.

 

[Splitlink]

Don't forget to include the ability of your company to remove funds directly from the customers card if the position results in a negative balance. Also, offer a direct debit facility for losing traders so that they will always have funds available to trade with each month.

Who would dream of giving a spreadbetting firm his credit card details? Certainly not me.

Split

 

[Lee Shepherd]

Hi Tom Tom,

If your company introduces a trailing stop loss like uktradergirl mentions so that it keeps me in the trade and never stops me out I would join immediately. This is exactly what I've been looking for and would also help me with a book I'd like to right on 'How to never lose in the markets'. I could then write in the book your firms name and get money for every customer that signs up to you.

Thanks.

 

[tomorton]

TomTom - you are right to point out, especially to losing novices, that its wrong to blame the SB firms. Of course they are going to hunt stops, this is a risk limitation technique they are forced to use because we choose to bet against them, all at the same place. Its our own fault really.

But I'm not prepared to say we all go to DA or else start our own SB firms - what about some debate on practical techniques to avoid the SB's hits?

I don't have the strategy book on this so these are not instructions, they are purely suggestions for debate -

1. ???Cancel trading stops for inter-session hours???
Leave a 'catastrophe' stop, but far from the market, the sort that will preserve your account if you go into a coma for 2 weeks with an open position but will never be triggered overnight. Reinstate your trading stop after the volatility following the next open if you want, but entering a stop is a telegraph message to the SB where to push his quotes.

2. ???Avoid entering at the same place as the crowd: this just makes it more worthwhile for the SB to hunt a crowd of stops???
But how to enter at the right place that most others will miss?

3. ???Never trade off the TA shown on the SB's charts???
They're not the underlying instrument and so their patterns should not be expected to obey the same laws that govern the behaviour of crowds as market TA.

4. ???Stay out of highly volatile markets with high ATR???
A workable strategy does not depend on exceptional market turmoil to be profitable, but it must work during the boring times, which are the majority.

5. ???Find the SB who is hunting stops in a market and take a contrary entry???
If the SB pushes quotes to an extreme high to hunt the stops the shorters put on, they will have to return to the market level by the next open - find the extreme highs and short them. We might need some kind of divergence signal to display the variation between quote and underlying instrument.

All comments welcome.

 

[TomTom]

What you say Tomorton, re taking advantage of skewered quotes is something worth following up.
I seem to remember someone a long time ago who had DMA and SB Firms charts over laping on a seperate piece of software, when prices were out he then traded.
He done this with two firms.
I think one closed his account and the other SB made him telephone only.

Have a gr8 weekend all, look out for last weeks lows to be broken before doing anything next week.

Untill then, sit on ya hands fowks.

 

[tomorton]

Cheers TomTom.

For anyone in a Taoist mood this weekend, I am suggesting something like -

To be certain to take what you attack, attack where the enemy cannot defend.
To be certain of safety when defending, defend where the enemy cannot attack.

 

[PurplePerson]

I don't bother whingeing about sbet firms. Yes they make life hard, but I manage to work around that and still find it worthwhile. I am now almost 11 years on from quitting the dayjob to trade fulltime. Almost all my trading is now done via sbets and has been for the past 18 months or more. I do get caught out now and then by some rule that I wasn't previously aware of - and that's never nice. But overall I'm happy to continue with it.

 

[UKtradergirl]

3. ???Never trade off the TA shown on the SB's charts???
They're not the underlying instrument and so their patterns should not be expected to obey the same laws that govern the behaviour of crowds as market TA.
.

Surely the fact that SB charts are different to the underlying, means that you should trade off them? It's like trading the FTSE using the DOW chart- whilst they correlate to a certain extent doesn't it put you at a disadvantage that you are using different data?

 

[tomorton]

UKtradergirl - now you mention it, that could be a good intra-day tactic.
If the underlying remains flat but the SB chart spkikes 20 points up, that could be a good one to go short on, as the SB will have to revert to the underlying sooner or later in the session - I have found that their closing levels closely align with the underlying. I was thinking of the swing trade entry points when I put that one in, and I missed your point. I can't watch the screen that much intra-day but it should be possible for a daytrader.

 

[ibex666]

sb

I don't bother whingeing about sbet firms. Yes they make life hard, but I manage to work around that and still find it worthwhile. I am now almost 11 years on from quitting the dayjob to trade fulltime. Almost all my trading is now done via sbets and has been for the past 18 months or more. I do get caught out now and then by some rule that I wasn't previously aware of - and that's never nice. But overall I'm happy to continue with it.

Good point! If youre aware of the rules coming at you then play the course, until the next one hits you. Trouble is sb,s will always find a "strategy" to dilute your winnings, but a ive often said, we sign the dotted line and we know whats coming!

 

[Splitlink]

Surely the fact that SB charts are different to the underlying, means that you should trade off them? It's like trading the FTSE using the DOW chart- whilst they correlate to a certain extent doesn't it put you at a disadvantage that you are using different data?

Yes, the important thing is that you knowthey are different.

 

[TomTom]

Guys try long Footsie/short Dax for a few piont profit on the intra day volitility swing. Usually takes 5 to 15 mins to work, can be done on DM and SB ( but more profitable on DMA)
It keeps me in TEA & Biscuits LOL

 

[Splitlink]

I will check that out. Thanks.

Split