Hi
Protecting your trading capital is important. One way to do so is to use a broker that guarantees the stoplosses : in case of a crash, the liquidity in the opposing direction of the peak is very low, so stoplosses won't be triggered, and you can lose a lot of money, maybe even your whole capital.
that's why there are strategies to protect your capital. i thought about one yesterday and i'd like you people to know your opinion about it: it's about trailing your SL
I'm not here talking about the classic trailing stop that will shrink with profit, but a SL that will always stay at a fixed small distance from the actual price. The idea being that if a volatility peak draws the price in the opposite direction of your trade, then you will be one of the first to close the trade, thus having a greater chance to be filled in.
could it be a good protective strategy or is guaranteed stoplosses better ?
let me know what you think
thanks
Jeff
Protecting your trading capital is important. One way to do so is to use a broker that guarantees the stoplosses : in case of a crash, the liquidity in the opposing direction of the peak is very low, so stoplosses won't be triggered, and you can lose a lot of money, maybe even your whole capital.
that's why there are strategies to protect your capital. i thought about one yesterday and i'd like you people to know your opinion about it: it's about trailing your SL
I'm not here talking about the classic trailing stop that will shrink with profit, but a SL that will always stay at a fixed small distance from the actual price. The idea being that if a volatility peak draws the price in the opposite direction of your trade, then you will be one of the first to close the trade, thus having a greater chance to be filled in.
could it be a good protective strategy or is guaranteed stoplosses better ?
let me know what you think
thanks
Jeff