Happy new year everyone . My take on the avoidance of flash crashes is that it can't be avoided but can be managed by factoring it in into our trading. because we (retail traders) don't make this moves to occur and can't predict when . However, by careful observation of holiday periods----summer breaks (August),Christmas holidays(December) and January , I think the underlying factor that is common to all of them is Thin Liquidity. Huge market participants take advantage of this to gun for the stops and market behavior in this periods tend to be inconsistent with normal price movements. My Action plan would be to reduce my exposure to the market by at least 1/2 of my usual lot size and also my holding period of any pair will be reduced as dimmed fit .
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