Yeah i was trading 10 contracts on less capital than that... no stops, eyes glued to the screen, piss breaks into empty beer bottles at the desk, etc
I don't understand that calculation. If your capital is 400K, how is your largest max position possible only 4 contracts? On 4 contracts, a $.25 move is $1,000.
Yes $1,000 / £400,000 is indeed about 0.2% depending on the FX rate. a) Because I trade 37 other markets. b) Because my volatility target is "only" 25% a year. I suspect yours is much, much higher. GAT
... so normalising for the amount of risk capital I have purely in Crude, it's £50,240 or if you prefer $64,374. So a 0.25 move is 1.6%. Still not exactly heart stopping. GAT
$0.25 a flash crash???? What a noob..... Do you even know what a normal monthly price range of crude is? Anyways, thanks for adding liquidity!
Chubbly The crowd is unable to move the price, because the shear force is transferred to other tools of petroleum products. The shift to 1pp is different, depends on the time of trade, on average, the price moves by 1pp from 3-million dollars, it's for oil, and in volatile time and 10 million is not enough to move the price, this is with the shoulder still 0.50. What I am saying is that you won't get extra liquidity
Crude experiences 30-50 mini 'flash crashes' each day. These are the breadcrumbs left by professional money taking profits , the stops of weak holders getting cleaned out, or often a nice combination of the two. This morning, after a nice setup from London lows, we can see profits being taken by professional money after hitting volatility range extension targets. Drilling into a lower timeframe chart shows increasing sellilng pressure after targets fulfilled in a bearish setup from London highs (at least for NY open). Mini flash crashes are the only way someone or something can unload 3000 cars in a clip...