what broker are you with?
ic market ,very good
hiya @Piperazine
do you mind explaining how these guys can hunt me, as trading liquidity come out of dark pool? so how can they identify and hunt specific person? I donât know yet and interested to know about this.
thnx
Market makers hunt for stop loss locations (generally) They are not hunting your specific stop loss however it is important to know that these markets are engineered and they are engineered to take your money.
my best advice is to think where would retail traders place there stops and donât place your stop there. For example two pips higher than the nearest swing high. Double tops etsâŚ
These common areas become areas of liquidity and price will reach for those levels then reverse. So even if you are right if you are placing your stop in one of these pockets of liquidity than plan on being stopped out.
you canât tell, with an unregulated counterparty broker in unregulated country, where liquidity comes from
you canât tell even if there is any âliquidityâ at all, if they are just your counterparty
you canât tell even if they show the same prices to different customers at different times
you have no safety or security at all, with an unregulated broker
important to avoid brokers in countries like Cyprus where âregulationâ has no meaning
Interesting that you talk about dark pools, but not much explanation. These are supposed to be ways that big players can hide their trades, so it can make it more difficult to see their activity through volume in futures markets. Can you elaborate?
Itâs hard to say if someone is hunting for your stop-loss or not, it all depends on the broker that you trade with, if itâs reliable, then it wonât do such a thing.
For UK-based traders, be aware that the reputable FCA-registered spread-betting companies just donât either dare to or need to stop-hunt.
Really⌠so none of the UK SB Companies move price up and down into SL zones to generate liquidityâŚThe UK must be a special placeâŚ
Tommo, for your education, Iâve attached an interview with a Professional Trader from you guessed itâŚUK SpreadbettingâŚ
He suggests tight stop-losses are the reason most traders lose money. What he doesnât even mention is stop-hunting.
Did you watch it�
Quote_" The people who run the markets know if they move price down before they go up they have taken you outâŚthey know thisâŚ" Stop hunting 101 right there Tom.
How to avoid stop hunting??? Donât use stops hahahahahahahahaha
The Ever On Holiday VIPER
On the other hand, from the same Youtube channel (which I subscribe to) here are clips that deny the stop-hunting myth -
Its incredible to believe that companies make any effort at all to ârobâ their clients when they donât need to - 80 or 90% of traders are rubbish and they will lose their money pretty well without any help thank you.
T, in the 15 years of being actively involved in Spot Currency, I have seen only one instance of a true stop hunt. An Aussie trading with Saxo asked me to check my data to see if the 50 pip move that took out his stop was reflected in other Hubs, I checked and out of 5 charts his was the only one that showed this spike, so there is that. But honestly, I have never experienced it, and again, saw it, only one time. If someone here has chart evidence, I would like to see it.
The Never Paranoid VIPER
PS Just because one is paranoid does not mean they are not after you
The example he uses is the usual Broker catch cry, move 200mil to stop out a 5p position, we all know that that is a crock and that price is moved into zones garnishing hundreds if not thousands of stops⌠BTW I always believe a Broker sales pitch over an independant traderâŚnot.
[quote=âtommor, post:36, topic:110338â]
80 or 90% of traders are rubbish and they will lose their money pretty well without any help thank you.
[/quote] 100% agree⌠As I have stated in another thread. FX is now so accessible to Joe Average that itâs no longer the domain of actual traders but the get rich quick crowd and gambling afflicted⌠Effectively less knowledge and less chance of knowing when they have been playedâŚ
The question of being a victim of stop-hunting is important because of what it can cause traders to do if they come to the wrong conclusion.
As Iâve suggested, the wrong conclusion is that -
the SB firm you trade through plans always to hunt whatever stops their clients have placed because a winning trade costs the SB firm money.
What traders do about this is important because of the extra risks they then expose themselves to -
- trade without setting a stop-loss
- set a wide stop-loss thatâs not justified by the TA
- move out of or avoid SB
In reality, the SB firm is not the enemy who causes the traderâs losses. The trader himself causes those losses. Until a trader recognises what the danger is, he will not be able to address it. He will continue to lose and then come onto a friendly forum and post about how he was cheated and robbed and the FCA wouldnât do anything and canât all the losing clients get together and start a legal action and so on and so on.
Its important to know what the problem is in order to find the solution.
The banks move price to where they would like to trade. They donât care about retail tradersâ stops, they canât see them and even added up they come to a paltry total against the scale of the market in any currency pair. The big players donât gain from private retail tradersâ stops being triggered, its just that if we place stops in stupid places, we deserve to get trampled on.
Yep! this is a case as well!
Ive heard that certain sophisticated traders wont place a SL because they dont want their SL to be visible to HFT. They also try to conceal their position by pyramiding in.
The conversation revolved around the fact that a pro trader was certain that his orders are visible and available to HFT almost instantly, allowing them to trade against other positions with an unfair advantage.
I dont know if this is true but I thought it was an intetesting idea. I didnt think this was possible.
I would have thought that any broker dumb enough to play stop hunting games on a regular basis, would be arbitraged out of business in double quick time.