I am just curious; for those who did place stops and profit takes which were fulfilled; did your broker execute them close to your set price or was there wild slippage, and finally who is your broker? Perhaps we can get an idea of good brokers from this event?
I made an earlier post asking this questions, if anyone is interested it is here: Flash crash and which brokers had acceptable slippage on Stop Loss orders
Good question. Mine were, were yours?
Who is your broker? Both my brokers executed Take profit and Stop loss orders very near my order entries and I made a nice profit.
Here is something to perhaps get your teeth into - granted this is from the c.1,200 pip Sterling flash crash of October 7th 2016 and not the JPY crash as the data is not yet public information, unless you have a DMA account and access to data - unikey. However, there are lots of similarities to perhaps look at.
Below is a chart showing a flash crash, youâll notice the initial 10% to 15% of the decline is buoyant with both bid and ask quotes, this is where liquidity is sat at, and if your stop is sat in this phase of the flash crash itâs likely that youâll receive less slippage. This is typical in all markets and makes sense, right?
Itâs the remaining 80% of the tail where the damage is likely to hit home should you have your stop in this region, and itâs these stops that will likely to prove fruitless with a vast degree of slippage.
Youâll also see in the below chart that flash crashes donât just âhappenâ per se, they arise out of a downward moving market which already has a bearish bias - again, applying this logic to the Sterling flash crash of 7th October 2016 we can make similar connections between the JPY currencies (they were certainly taking a hammering well before the crash vs the base currency)
So whatâs the moral of the story here? No they canât be predicted, but donât ignore the overall trend, any trend following trader who had a bias would have been short on a reasonable timeframe and therefore in the direction of the [mini] flash crash - the higher the time frame, generally, the more stable and less erratic price volatility will be when carrying out analysis.
If youâre interested here is the report on the Sterling flash crash of October 7th 2016 from the Bank of International Settlements (BIS) - there will be lots of similarities that we can pull from this that will apply to the most recent JPY move.
GBPUSD Flash Crash Report 07_10_2016.pdf (548.0 KB)
Iâd recommend this if you want to understand the logistics of a flash crash, contributing factors, the âperfect storm of mistakesâ that cause a crash and also highbrow data analysis that will give you a step up from all the hearsay 
I wasnât in the market at the time. I was just wondering for reference.
Some more clues. Japanese holiday. Moves out of the lira. Apple.
Good evening,
This person says things how they are and it makes all very good sense. I quote:
âA Flash Crash is a planned attack on the market, for immediate financial gainâ
It all looked very strange as it bounced straight back up. Like they were just simply hoovering up all those orders.
Please read the full Blog post.
VP has great things to say about Baby Pips . His blog and YT channel are amazing. Highly recommended.
happy days people.
Anyone know if UK has similar rule? (to US regulation - data of the 15 trades each side).
A really good blog post there
We spoke last week about sentiment, and in the blog for it, I made a reference to how the AUD/JPY had 89% of its traders going long, trying to catch a bounce.
89% is an insane number. Itâs almost a 9:1 ratio, which you almost never see on the SSI Indicator in Forex.
âLetâs take some minor news, make it sound catastrophic, and Flash Crash this sucker. Oh, and make sure it happens during low liquidity time so we have another built-in excuse. The combination of the two cannot be refuted!!â
Thatâs actually a pretty good post. I like the guy/how he writes. How long have you been following him?
From an article in the Bloomberg terminal, titled "Yen Surge was âMiniâ Flash by Poundâs Standardsâ
Some interesting data and analysis from MarketFactory:
Notice how both the depreciation and dysfunction phases were in âminutesâ when yen crashed but lasted only âsecondsâ when pound crashed.
Looks like the big difference there was people werenât on holiday! 
Here is a report from Australiaâs central bank (RBA) regarding the yen flash crash event.
âBid-ask spreads widened to over 100 pips (1 US cent) for a short period.â
You can also find it here, under âBox Bâ.
Iâve only just seen this @ForexGump
Iâm keen to look into this and understand it a little more - thatâs some interesting comparisons you have their for the Yen vs GBP, too.
