Trader loses 14 million dollars in yen flash crash

This is why I will continue to push and never apologize for risking a maximum of 1% or less of portfolio value on a single trade.

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$14m and it’s based on a myfxbook screenshot? you need to stop believing everything you read mate! Looks really professional to me :joy:

at best a cheap scam to get some cash.

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It may or may not be real, but people frequently blow up their accounts with 400+ pip black swan events. At that point it’s just a game of scale. If you trade full lots, then it would not be hard to lose millions.

The principal is the same, trade small, protect capital, and live to trade another day.

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or just trade with the actual trend and realise that when consumer sentiment is at 9:1 long then it’s open to the banks to manipulate price and crash price down - which is exactly what happened with the Yen. The immediate reversal and “more” was a text book smoke signal after the fire.

blaming the earnings report from Apple was just hideous.

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Black swans don’t care about trends my friend, and extreme positioning, a predictor it does not make.

Plenty of black swans to look back on to prove this.

If you got lucky, and that gives you comfort, be my guest. It turns I don’t trade small for black swans, but it certainly helps when they do happen.

Show me an instant market crash, like the Yen move or Swiss Franc in a booming market? They simply don’t happen. Call them black swans, or what ever you like, they are the result of an already deteriorating market.

I also wouldn’t discount extreme positioning, it’s the dangling carrot - and also happens to coincide with the Swiss Franc crash too a few years back… also at around 9:1 long when the floor gave way…how ironic.

February 6th, 2018… The stock market has the largest point plunge in history, plunging 1600 points in just a few hours. The plunge occurrs during one of the strongest bull markets in history, breaking countless bull market records.

If we wanted to go back 100 years and include all tradable assets: stocks, bonds, futures, Forex. How many 3+ std. dev. moves would you find? Thousands and thousands.

You should frequent reddit. There are a lot more 3+ std. dev. moves that blow up accounts than you think.

Capital preservation is a requirement for long term trading. Anyone overrisking has not traded long enough or has extreme draw downdowns and repleneshes with new capital. Of course these people will never admit that in the forums. Those are people who claim to make 4-10% or greater a month, but never a thread of evidence is shown. But that is another conversation for another day.

Rather than spending your effort on backhanded remarks perhaps you could remain focused on the question, which is FX related, not stocks, shares or equities, which is an entirely different kettle of fish from a participant point of view.

I’ve not disagreed with capital preservation, which I’m an advocate of, however it stands to remain that FX crashes, more times than not, overwhelmingly so are derived from a cracked market with extreme positioning on one side. I’m sure there’s other dynamics which are common too, but for the sake of simplicity let’s keep it clean.

There’s another thread for this, you know where to find it as you’ve already commented. let’s keep this one on track? :wink:

Black swans and blown up accounts aren’t special to Forex. They all look the same, blow up accounts the same, and certainly don’t care about prevailing trends (but sometimes people do get lucky).

Not a lot of traders still here from 2013. I bet it is because they struck it rich with their overrisking and 10% a month gains, and got too big for babypips… HAHAHA. That is probably the best joke on babypips this year.

Trade small, defend capital, and live to trade another day.

I agree with this, however the market participants are hugely different within FX with institutional banks essentially setting price. Not true for stocks and equities as I’m sure you would agree.

For this reason longer term trends and extreme position sizing has a far stronger footing in FX markets when correlating this to historic flash crashes. It’s all there and I’ve done the research. I don’t chase crashes, but I certainly understand what side of the market to be on when filtering these potential volatile moments.

Anyway, I’ve provided the insight, which was clear from the offset.

I don’t think this is true but if you show me the research and hard data to prove it I would be more than happy to reconsider.

According to one thread here you’re a professional programmer? I’m sure you could knock up a script to test these moves in the FX markets yourself and simply extract the variables prior to the market moving events?

You know, sometimes it’s better to do the work yourself rather than being given the answer straight away…its more productive.

:roll_eyes:

ah yes, my mistake, you want the silver spoon. :raising_hand_man:t3:

It was your claim, not mine. You are seriously going to make a claim and then ask me to prove your claim? That’s just stupid.

You can’t produce any proof to back up your claim, I understand.

So maybe quit writing checks that you can’t cash. Know what I mean? :smirk:

Get off your high horse Krug, I’m not entertaining your antics. Do I have to prove to you that 1 and 1 makes 2? It’s fact, and it’s your choice to accept it or not, it makes no difference to my P&L… now have a wonderful week :woman_juggling:t4:

Expecting people to back their claims is considered a high horse? Asking people to back up claims are now considered antics :thinking:

Hmm, well, if that’s what you want to call it fine, but that’s how I run my threads. Plenty of other threads here that run on unsubstantiated claims and fairy tales if that is your thing.

I have said that flash crashes in FX are correlated to alreday deteriorating markets and substantially high position sizing bias. This is nothing new - it’s certainly not a claim either because it’s obvious.

Look back at every flash crash over the last 20 years, or do you need help?

If you were half as smart as you try and put across here then you’d also see the same correlation rather than assuming you’re right and wasting your energy arguing a point.

I’ve never claimed to be smart, but I am honored you think so.

Just back your claims and you won’t have to resort to this weird defensiveness and sarcasm you are bringing to my thread.

It should be easy to prove then. I will be waiting…

I’m not wasting anymore time on your pathetic remarks whilst you’re sat behind your keyboard.

If you can’t work out the basics for yourself then that’s your own problem. You’ve been defensive in all of your posts in this thread and it’s clear to everyone. I think you need to grow up a little.

The thread is all yours now, I’ll pick your toys up on the way out.