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Platform Malfunctions:- A Trader's Worst Nightmare


mortijoon

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Just like good boy scouts, traders need to be prepared for the unexpected. It is virtually inevitable that part of a trader's workstation will melt down at some point, and this can lead to a financial loss. Platforms can experience problems, including surprises in strategy automation, for which traders need to plan. And, although it (thankfully) doesn't happen very often, entire exchanges can even shut down. All traders need a well thought out plan - in writing - to deal with these types of eventualities. If traders are ready to deal with problems as they arise, they'll be back to trading sooner - and hopefully with a minimum of stress and financial loss. Think of this preparation as a form of risk control.

 

Important Numbers

At the very least, traders should have a handy list of service providers having to do with trading: brokers, essential trading and charting software, internet service providers, etc. The list should be easy to use and posted in an obvious location. The service name, telephone number(s) and pertinent username should be included along with the account number and password information.

 

Fig1.jpg?1425474080

 

Fig 1 An example of a service provider list.

 

Workstation Problems

Let's take a look at some of the technology on which traders rely in their workstations: computers, phone lines and internet connections. These elements are important to traders, yet any of them can abruptly disappear from the trader's workstation. The first step in dealing with tech issues is to immediately recognize and acknowledge the problem, and then take action to fix it.

 

Computers

The best offense for computer related problems is a good defense. Traders can avoid many problems by following three rules:

 

Keep virus protection up to date

 

Use hardwired peripherals (keyboard, mouse, etc)

 

Use hardwired internet

 

Using virus protection and internet security protection can help keep a computer healthy and working. Avoiding any wireless connections for things like keyboards, mice and the internet can help minimize the risks of a computer component malfunctioning, as well as simplify the troubleshooting process.

 

A separate computer, such as a laptop, with the trading platform loaded is a practical back-up. If the main computer is not functioning, trades can at least be monitored and/or placed. If a separate computer is not available and the main computer is down, a phone call to the broker can be made to place or close orders

 

Phones

If phone lines are out, the internet may be out as well, depending on the type of connection used. A good way to be prepared for losing a phone line connection is to have a charged cell phone handy. A cell phone can be used to call the broker, if necessary, and then to call the phone company to determine how to fix the problem.

 

Internet

If the internet connection is lost, a back-up internet service provider can be used if available (for instance, an air card or smartphone tether connection). Otherwise, a quick call to the broker can be made to ensure open trades have protective stop loss orders in the market, as well as profit target orders. After that, one can call the internet service provider's tech support to deal with the problem.

 

Platform Problems

Though traders would like to think their trading platforms are infallible, it is to a trader's advantage to plan for problems. The best way to be prepared for a problem is to create a troubleshooting guide specific to the platform. This should be an easy-to-find, easy-to-read page that provides an action plan to address each problem. Laminating the guide will help keep it in good shape, and will make it easier to find in normal workstation clutter. Keeping it in an obvious location at the workstation will ensure that it can be found during stressful times. The guide should state the difficulty, and list actionable steps towards resolving the problem.

 

A troubleshooting guide like this is a work in progress. Every now and then some new quirk will emerge. Once the trader has identified the problem and figured out the best solution, both should be added to the troubleshooting guide. Figure 2 shows an example of the type of information a troubleshooting guide might contain.

 

http://www.trade2win.com/system/images/4752/original/Fig2.jpg?1425474080]/IMG]

 

Fig 2 A troubleshooting guide.

 

Be Prepared

Since traders rely so heavily on technology, it is inevitable that some component of the chain of technology will malfunction. It is bad enough to deal with a computer crash, but when money is at risk because of it, it becomes even worse. Here are some ways in which traders can be prepared to deal with these problems:

 

Have a good battery back-up for your computer and other equipment such as modems. That way if there is a power outage, there is still some time to watch a position, and then call in any necessary orders to the broker.

 

Keep a list handy of phone numbers, usernames, account numbers and passwords.

 

Keep a back-up computer handy, with all trading applications loaded and ready to go. Remember to download new versions of platform software as they become available, and save your workspaces to the back-up computer.

 

Make sure a cell phone is handy and has a full charge in case the LAN line is out.

 

Have a backup internet connection ready to go.

 

Know how to refresh the data feed if it is sporadic or doesn't match other time frames. Refer to the platform's help guide for assistance.

 

Take quick, decisive action as soon as a problem is suspected, and follow the predetermined protocol for solving each problem. For new problems, document the steps taken to resolve them, and add the information to your troubleshooting guide.

 

In Summary

Each trader is different and will require varying degrees of preparedness. The casual buy-and-hold investor, for example, might not need a back-up computer and a back-up internet connection. An active trader, however, needs to be prepared to handle things like their broker losing access to the exchanges. This might come in the form of a back-up broker or a ready-to-fire hedge position that helps reduce financial risk in an open position in the market.

 

Each market participant, whether a buy-and-hold investor or a scalper placing dozens of trades a day, should evaluate his or her needs, consider what could go wrong, and develop an actionable plan to fix any problems as soon as they arise.

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  • 1 month later...

LOL if we use a common sense then platform malfunction is really bad for trader, can you imagine if you are in profit and suddenly the platform stated that you are in loss? This is really frustating thing and i don't really recommend to keep using that platform, reinstall or asking for support is the best idea.

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  • 2 weeks later...

For sure it is a trouble, i think that when opening position as critical condition that will set our future, if there is malfunction and the program doesn't respond plus that platform closing it must take few seconds or even few minutes to oepn it back, and this is the worst thing that could happen.

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Malfunction will cause more panic to the trader i know the feeling of this one, when i open a positon but the platforrm does not respond with it thus i lose my chance to make profit which i really hate.  The very best part here that it is actually the real worst that many people put aside.

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  • 2 weeks later...

Malfunction will cause more panic to the trader i know the feeling of this one, when i open a positon but the platforrm does not respond with it thus i lose my chance to make profit which i really hate.  The very best part here that it is actually the real worst that many people put aside.

Who does not panic when they got this kind of thing? I will be too. Platform malfunction when trading will bring bad thing, especially when you already executed one position with BUY or SELL and then want to close it. The worst one of this issue could happened to scalpers who need precise time.

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  • 2 months later...

Of course, platform malfunction is a nightmare for forex trader. Many traders lose their money if something like this happen especially during volatile hours or when you are ready to enter the market by open a position. To me this is not just nightmare but the worst thing that could happen to trader.

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  • 1 month later...
  • 3 weeks later...

Not just forex trader but also all kind of people when their system or their tools has malfunction it will be a bad thing to the worst nightmare, since forex is risky one worst mistake could lead to seems like endless nightmare. If you are scalpers and want to close your position but platform start to disfunct, it seems your doomsday is coming :D .

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  • 3 weeks later...

Simple explanation but has a grain of truth. I also do believe malfunction from our platform is a disaster or in the worst cases will lead our acount into margin call. To me i don't want to touch margin call again that lead to stop out. It means that my account already in big loss if that thing happening and just because of platform malfunctions? Nope.

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  • 2 weeks later...

In the end this is what we should avoid as much as possible, i don't know if we can sue a company which create that platform. Because if we trade with huge sum of lot it would be a bad thing if we lose because of this sorry, stupid thing. To avoid usually people will choose  a stable platform.

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  • 5 weeks later...

We are trying to avoid it with update if there is a new update from your provider in this case if you use MT4, then if there is an update from MetaQuotes then you should download that update and fix your trading platform, and in future something like lose because of malfunction in your platform won't exist.

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But remember not all of those updates would bring good change to your platfrom there are few updates which cause the platform doesn't work at its optimal condition. But yes, the worst is always the malfunction, i experienced this once and it is not a very pleasant story to tell where i lose quite huge amount of money.

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  • 6 years later...

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