If you were working for a firm your risk manager would pull the plug on you if you got too deep (ie: an imposed stoploss).
As well he should.
Wonder why?
Because I was swinging to much size.
Do you think they are idiots in running their business that way?
Not at all
Yes, it was trade 2. I don't quite understand your answer here. If you were running a long campaign would you have been buying the lows all the way down and scratching on the occasional pullback, or have I got it wrong? Thus different numbers in play and not as easy as "just take away the short position"? Sorry to be dense.
Yep. I was buying every new low and scratching out the size i didnt want on the pullbacks, same deal as entering a position.
It went:-
1) Entry into shorts completed
2) Start to hedge 11180 odd (with buy limits)
3) Buying every new low and scaling out what I dont want to get back to 0.20 (hedge size)
4) This continues till the market made its final low at 11079.1
5) The -0.19 pence is what it cost me. The results the scratched trades.
Does that make sense?
Heres one for the risk manger situation.
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I traded my way into the low 11374 (orange tab), Joe bought the break out at 11445 with a stop at 11386.
Joe is 10x my size, he has to be to pay for the cost of his stops.
Shìt happens over weekend and the market opens 10951.
Who does the risk manage call into his office?
Joes out at that moment eating a whopping slice o slippage pie.
Im still in the position with 1 tenth of Joes loss as a floating loss, but in still in the game. This becomes realised as I start to manage the position. No prizes for guessing where id be positioned and id have the potential to make some back, at the very least.
Joe would have to renter and play again. Providing he hasnt been sent home already.