Has anyone else run into this?
On Wednesday 1/21 at 19:30EST/00:30GMT I set 2 pending orders for EUR/USD as follows:
Order 1: Sell Stop @ 1.4090 | 1 Lot | EUR/USD | SL @ 1.4590 | TP @ 1.4085
Order 2: Sell Stop @ 1.4090 | 1 Lot | EUR/USD | SL @ 1.4590 | TP @ 1.4080
Turn on your 1 minute chart to follow along.
Here's what happened in the background:
1) Something happened in the world (more on this below) that caused the EURO/USD to spike down ... in the "right" direction ... remember I was planning a short scalp.
2) At 21:00EST/02:00GMT the price drilled down 53 Pips in less than 1.5 minutes (90 seconds).
3) Price immediately bounced back up 43 Pips over the course of the next 4 minutes.
I checked my charts quickly after doing the evening routine before bed and was dismayed to see a pretty significant loss. I thought something must be wrong in the world for me to loose 500 pips in less than 2 hours.
Upon checking the chart I saw that price was relatively where it was when I originally set the order and there was no 500 Pip move.
I called my broker to figure out what happened.
They couldn't really tell me what happened but explained that it is risky to trade during news times. I insisted that I was not "News Trading". I checked the news for that day filtering for the EURO, USD, JPY, CHF and there were no "red" or even "orange" news reports coming out around the time the spike occured.
I'm not a news trader ... just had a feeling (based on S+R) that price would move downward at some point while I was asleep. If anything I'm an anti-news-trader ... if that makes sense ... I try not to trade during news periods because of the insane volitility.
The customer service rep said a report came out in China that drove the price ... I interrupted and said "China!, you're kidding right? "China?"
I hung up ... calmed down and went to the FF news filter, put a check in the box next to CNY and saw that there was indeed a red news report at 0200GMT.
I called back with a calmer head and said, "lemme talk to your supervisor".
So here's my analysis of what happened, which was hard for the customer service rep to figure out ...
1) Price drove down so fast that it blew past my entry level and entered at the bottom of the spike move.
2) Price drove back up almost as fast hitting my original TP level.
3) Metatrader "interpretted" my TP levels as stop loss levels and "Stopped me out" for a loss.
Here's the funny part ... well, not funny cause it's LIVE and its real money but you know what I mean ... in the Journal there are two green boxes. Two green boxes with negative profits.
--------------------------
Has anyone else run into something like this?
Thanks!
On Wednesday 1/21 at 19:30EST/00:30GMT I set 2 pending orders for EUR/USD as follows:
Order 1: Sell Stop @ 1.4090 | 1 Lot | EUR/USD | SL @ 1.4590 | TP @ 1.4085
Order 2: Sell Stop @ 1.4090 | 1 Lot | EUR/USD | SL @ 1.4590 | TP @ 1.4080
Turn on your 1 minute chart to follow along.
Here's what happened in the background:
1) Something happened in the world (more on this below) that caused the EURO/USD to spike down ... in the "right" direction ... remember I was planning a short scalp.
2) At 21:00EST/02:00GMT the price drilled down 53 Pips in less than 1.5 minutes (90 seconds).
3) Price immediately bounced back up 43 Pips over the course of the next 4 minutes.
I checked my charts quickly after doing the evening routine before bed and was dismayed to see a pretty significant loss. I thought something must be wrong in the world for me to loose 500 pips in less than 2 hours.
Upon checking the chart I saw that price was relatively where it was when I originally set the order and there was no 500 Pip move.
I called my broker to figure out what happened.
They couldn't really tell me what happened but explained that it is risky to trade during news times. I insisted that I was not "News Trading". I checked the news for that day filtering for the EURO, USD, JPY, CHF and there were no "red" or even "orange" news reports coming out around the time the spike occured.
I'm not a news trader ... just had a feeling (based on S+R) that price would move downward at some point while I was asleep. If anything I'm an anti-news-trader ... if that makes sense ... I try not to trade during news periods because of the insane volitility.
The customer service rep said a report came out in China that drove the price ... I interrupted and said "China!, you're kidding right? "China?"
I hung up ... calmed down and went to the FF news filter, put a check in the box next to CNY and saw that there was indeed a red news report at 0200GMT.
I called back with a calmer head and said, "lemme talk to your supervisor".
So here's my analysis of what happened, which was hard for the customer service rep to figure out ...
1) Price drove down so fast that it blew past my entry level and entered at the bottom of the spike move.
2) Price drove back up almost as fast hitting my original TP level.
3) Metatrader "interpretted" my TP levels as stop loss levels and "Stopped me out" for a loss.
Here's the funny part ... well, not funny cause it's LIVE and its real money but you know what I mean ... in the Journal there are two green boxes. Two green boxes with negative profits.
--------------------------
Has anyone else run into something like this?
Thanks!