My contigency plan

[torero 10]

We all know the rules of engagements, at least we think we do until something happens to us, like blackouts, no internet connection, broker server disconnect, broker software freeze, and many more mishaps. These are things that go with the business, so better plan for it.

 

Here's my setup, nothing fancy but it's adequate for now until I upgrade later:

 

1) my desktop

2) my laptop

3) remote server at datacenter

4) DSL line

5) Dialup line

6) 3G line (wireless DSL/dialup, that's what they call I think).

7) Main broker

8) 2nd broker

9) brokers phone #, customer support phone #, telco customer support #, remote datacenter customer support #.

 

Scenarios:

1) blackouts - if these happen, I go to my laptop and use dialup to reconnect and go flat in case I was in a trade.

2) broker software freeze or malfunction - I go to another broker and hedge my 1st broker's trade. Call them until i get resolution then go flat simultaneously. I also go to remote desktop to connect to my server at datacenter and go flat from there, if laptop doesn't work either.

3) DSL disconnect - I go to my dialup or 3G connection to get back in

4) Caught in position without being at trading station/desk - Take my laptop to coffee shop or golf lounge and connect via 3G

 

I'm sure there are other situations, but these are ones that have happened to me. When they do, my first goal is to go flat, whatever it takes as quickly as possible.

 

What about you guys? What's your contingency plan?

[budman 10]

I used to have cable and DSL in case one went down. It wasn't worth having both. I got rid of the DSL. I figured if a telephone pole was knocked down from a storm or car accident, both the cable, DSL and telephone would be out.

 

So, I have two computers running at all times with battery backups. Both have my initial trading broker software and a backup broker to hedge.

 

I have my cell phone ready to go in case I lose cable service and regular telephone.

 

I also enter a stop market order as soon as I enter a position in case all else fails.

 

I will not trade with such a large position that I'd be out of business if we got a 911 style attack at the CBOT . It's a sad reality. If it were to happen, you can never know about if, when, and at what price the market would open.

Something like this would put the exchange {and traders} out of business for a long time.

[torero 10]

Like you, I place my stops immediately too. With MBTrading, they allow multiple open orders on their servers, very slick. With Tradestation, they only recently allowed to have open orders parked on their servers (but only 1 open order allowed at any one time) so I still have to be careful.

 

Yep, disasters in the past tells 2 things:

 

1) we were lucky to have not been affected

2) we need to prepare for the unexpected or the worst when it comes again.

[Dr Who 10]

We all know the rules of engagements, at least we think we do until something happens to us, like blackouts, no internet connection, broker server disconnect, broker software freeze, and many more mishaps. These are things that go with the business, so better plan for it.

 

Here's my setup, nothing fancy but it's adequate for now until I upgrade later:

 

1) my desktop

2) my laptop

3) remote server at datacenter

4) DSL line

5) Dialup line

6) 3G line (wireless DSL/dialup, that's what they call I think).

7) Main broker

8) 2nd broker

9) brokers phone #, customer support phone #, telco customer support #, remote datacenter customer support #.

 

Scenarios:

1) blackouts - if these happen, I go to my laptop and use dialup to reconnect and go flat in case I was in a trade.

2) broker software freeze or malfunction - I go to another broker and hedge my 1st broker's trade. Call them until i get resolution then go flat simultaneously. I also go to remote desktop to connect to my server at datacenter and go flat from there, if laptop doesn't work either.

3) DSL disconnect - I go to my dialup or 3G connection to get back in

4) Caught in position without being at trading station/desk - Take my laptop to coffee shop or golf lounge and connect via 3G

 

I'm sure there are other situations, but these are ones that have happened to me. When they do, my first goal is to go flat, whatever it takes as quickly as possible.

 

What about you guys? What's your contingency plan?

 

Nice plan there Torero!

 

Being in Japan we have to consider earthquakes, snow, typhoons, and nuclear reactor mishaps. So having the laptop with a fully charged battery is paramount. Having multiple brokers and quality hedging strategies are also favoured.

This is something I will constantly work on as technology changes.

 

Dr.

[Anonymous 11]

Brilliant. Nice work. I guess I have some thinking to do.

 

Here's a quick question for you torero;

 

What if the reason for the trade remains valid? More over, suppose you are in tune with the market and the trade is going your way. Now the power in your city goes down due to a totally localized situation (heat index over 110 and everybody has the air on), would your goal be to get flat? Wouldn't an automatic trailing stop be better?

[torero 10]

I wouldn't worry about it if I can connect via my 3G wireless data connect. If I still have trouble connect, then I would set a stop. As for the trailing stop, it depends on how the market is, if it's running away like some forex pairs we've seen this morning, makes perfect sense. I can't use it for eminis, might as well be flat.