Share strategies which you use as insurance againt black swans or other rare events

Hi everyone,

I'm relatively a new trader (trading from around an year), recently I've implemented fixed fractional money management strategy to gain more profits. Everything is going better than my expectation - but something has me stunned, this thread actually: http://www.traderji.com/general-trading-investing-chat/70631-slippages-sl-m-orders.html (250 points slippage)

Currently one of my strategy (the biggest one) has trading size of 20 lots of Nifty futures. I use market order for entry and SL-M order for exit. So far my slippage hasn't exceeded 4-5 points per trade - which is fine. But after reading that thread above - I'm a little concerned.

Since I'm a day trader, my exposure to market is pretty low - around 20% of the time only - but still an event like this can cost 200-250 points or maybe more by triggering SL-M order. That would cost 250*20*50 = 250000/- rupees loss.

So my questions is, what strategies you guys implement to save yourself from such events?

Re: Share strategies which you use as insurance againt black swans or other rare even

Oh sorry
I thought you are discussing some strategies here.

Re: Share strategies which you use as insurance againt black swans or other rare even

Nope, looking for ideas here...

Re: Share strategies which you use as insurance againt black swans or other rare even

I don't think you can do anything to avoid this kind of situation......... I mean if really the next tick after the sl-m order is really 200 points away, what can you do?

Absolutely nothing, however it won't happen in 2 times in 10 years even may be even 20 years

Re: Share strategies which you use as insurance againt black swans or other rare even

While placing entry order , place it as limit order price higher then market price. It will ensure that order will be filled at market rate and will never be trapped in such rare events..