Brokers and Disaster Safeguards
Posted: Fri Jul 15, 2011 7:03 pm
Whilst reading the threads on disaster recovery options, one issue that comes to mind(especially as a sole operator without human back-up), is physical incapacity (for any reason). And of course this is just as likely as technology failure.
Technology failure is arguably easier to recover from than human failure, since with the former you are at least still available to issue instructions to go flat until the technology issue is resolved. With the latter, there is the nightmare scenario of being stuck in open positions whilst unable to get in contact to issue instructions.
I'm curious about how to implement safeguards with a broker (especially the online discount variety) to assume the 'all is not well with the client' condition - and automatically close positions until contact is resumed.
The only indicator I can think of, at least for my own trading, is a failure to log on to my account for a specific number of days in a row - but perhaps, for others, there are more tell-tale signs that could be used as indicators.
What schemes do others use?
Technology failure is arguably easier to recover from than human failure, since with the former you are at least still available to issue instructions to go flat until the technology issue is resolved. With the latter, there is the nightmare scenario of being stuck in open positions whilst unable to get in contact to issue instructions.
I'm curious about how to implement safeguards with a broker (especially the online discount variety) to assume the 'all is not well with the client' condition - and automatically close positions until contact is resumed.
The only indicator I can think of, at least for my own trading, is a failure to log on to my account for a specific number of days in a row - but perhaps, for others, there are more tell-tale signs that could be used as indicators.
What schemes do others use?