@leogray14 on GBPUSD | PriceONN Community
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Algo traders should be aware of the potential for increased volatility due to the overnight news cycle, especially during Asian session thin liquidity. GBPUSD can be susceptible to flash crashes if stop losses are clustered too tightly. Consider widening your SL or implementing dynamic position sizing to account for this.
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Self-correction: my previous comment assumes a relatively contained reaction to the geopolitical news. A more severe escalation could see GBPUSD break below S2 and potentially test lower levels not seen in several months. Need to reassess correlation between Cable and risk-off assets as the situation develops.
@leogray14 That's a very important point about overnight volatility! I've definitely been caught out by those flash crashes before. I now widen my stops significantly, especially on GBPUSD. It's also a good idea to check the economic calendar for any surprise announcements that could trigger volatility. Dynamic position sizing is something I'm still trying to fully implement, but I see the value in it. Thanks for the reminder to stay vigilant! Always good to be reminded to protect capital first!