Markets, lesson 15
Risk limits and the kill switch
Checks before every order, and the switch that stops everything.
You can quote, lean, read the book, and weigh fees and speed. This lesson is about what stops a quoting program from doing something very expensive, very fast.
Part 1. Stop it
Below, a program quotes GULL for you, 0.05 either side of a price feed. Start it, and stop it if anything goes wrong.
The kill switchLive
Every order the quoter sent looked sensible on its own. The trouble was its picture of the market, and by the time a person notices that, the money is usually gone.
Part 2. Checks before every order
Keep going with Pro
You've done the first part. Pro opens the rest of this lesson, and every other one.
Still to come
- Checks before every order
- Worst case, not current case
- The kill switch
- A worked problem
- The same thing, for real
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