Possible to avoid getting wiped out by a move like SNB?

[alt11]

Hi all,

I've been demo trading quite successfully to the point where I'm considering going real.
However the surprise move by the SNB last week and the ensuing horror stories have got me thinking.

Was there a way to avoid being wiped out if you were long eurchf with a stop loss?

I guess my question is: are there any brokers that would have guaranteed the execution of a stop loss even in this case, even with a huge gap?
Because if not, then trading FX is just crazy.

Thanks

 

[sktrade]

ALWAYS use REVERSE ENTRIES for EVERY BUY OR SELL & With TARGET PROFIT .This way your loss can never be then that of reverse Entry.

SUPPOSE You buy EUR/USD at 1.2000 TP at 1.2020 & PUT REVERSE PENDING SELL ENTRY at 1.1980 without TP & stop loss at 1.1970.
And as soon as Buy Script Closes after achieving 1.2020 Reverse PENDING sell entry would close automatically by designing this way MT4 script.

THIS way your PROFIT /LOSS ratio is always 2:1 & Probability of PROFIT is always MORE then losses. ALMOST NIL

 

[downtrend]

For avoiding such conditions, you need to diversify your risk. You can open different accounts in different brokers and trade only on one account at a time. You can arrange the order or some else parameter by which you can trade in your accounts. In this way if any of your account gets busted, you still have rest of your accounts to trade on.

 

[DavidC1]

I agree with the diversification. Otherwise, probably not able to avoid it. Maybe mitigate it with a stoploss, but... playing with fire.

 

[fxstrategist]

Trading FX is crazy, but you can choose very professional brokers that would protect you from yourself by not allowing you to overleverage on certain risky instruments.

 

[iMusingKiMi]

ALWAYS use REVERSE ENTRIES for EVERY BUY OR SELL & With TARGET PROFIT .This way your loss can never be then that of reverse Entry.

SUPPOSE You buy EUR/USD at 1.2000 TP at 1.2020 & PUT REVERSE PENDING SELL ENTRY at 1.1980 without TP & stop loss at 1.1970.
And as soon as Buy Script Closes after achieving 1.2020 Reverse PENDING sell entry would close automatically by designing this way MT4 script.

THIS way your PROFIT /LOSS ratio is always 2:1 & Probability of PROFIT is always MORE then losses. ALMOST NIL

I thought MT4 doesn't have this kind of function because usually I use Pro Real time, we just need to reverse pending to close the bias position. So usually we will not suffer on gap.

 

[iMusingKiMi]

Hi all,

I've been demo trading quite successfully to the point where I'm considering going real.
However the surprise move by the SNB last week and the ensuing horror stories have got me thinking.

Was there a way to avoid being wiped out if you were long eurchf with a stop loss?

I guess my question is: are there any brokers that would have guaranteed the execution of a stop loss even in this case, even with a huge gap?
Because if not, then trading FX is just crazy.

Thanks

Up to date, I learned what is Forex for 11 years. This is the first ever incidents occur that bad, and it hurts a lot of swing trading. Mid/Long Term trading. I agree reverse pending is the best instead of SL. That's what I use in my trading. Not sure MT4 have this kind of function.

 

[DavidC1]

What about MT5?

 

[Pharaoh]

No matter what protections you use, a large market gap can blow right past any stops or pending trades. Use the SNB disaster as a warning - look at your trades and keep your volume small enough that a 500 pip gap won't reduce you to zero (or below).

 

[iMusingKiMi]

What about MT5?

Sorry, yet to use MT5 as well. I don't like MT4 because too basic, a lot of more advance function not available such as TICK chart etc. Especially for me who trade fractal strategy, tick is quite important to me. Especially I don't like that it must point to bottom of candle if bearish to see Open Close and vice versa. So difficult to take the cursor exact especially price near candle.