Quote:
Originally posted by viggen
I think he meant the risk versus reward ratio is too high, and that the majority of the risk comes from stop hunting rather than market related.
I think 14% roi is quite low too in a market where you can lose your shirt in 5 mins.
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Hi viggen
Risk/Reward ratios are the decision of the trader, if the trade is right then even a dishonest broker will have difficulty spiking price far enough to trigger a stop. Sure it happens occasionally when prices nearly hit stops and the dealers get a little overzealous, but not to the extent that it should affect overall profitablility. Don't forget there are traders hovering to snipe at spikes, a dishonest broker who does it regularly would soon be targeted.
I'm not sure about 'lose your shirt in 5 mins', if that's the risk then there's something desperately wrong with your strategy
Mick