Re: LOL_Niederhofferaments
[ QUOTE ]
I understand you're a scalper. I've heard you guys take high-probability trades but get a few pretty sick outlyers go against your positions. You must have a very strict and conservative risk-management strategy
[/ QUOTE ]
I am very risk averse and trade mostly spreads. In fact most guys that make markets in the electronic markets trade mostly in some sort of spread/strategy form. All the guys in my office do anyway. And when trading outright directional stuff you have to stay pretty small because you can get run over in a heartbeat. Electronic trading is a lot different from pit trading. In the pit it's easier to do bigger size because you know the spots where you can puke and can really feel the flow of the market. Electronically you lose a lot of that. Doing 100 lots in the pit is like doing 10 lots on the screen.
|