How to be sure that your stop-loss is not hunted? :)

Trading Discussion
125

hiya @mrpip314

Thanks for your valuable input. This was kind of answer I was looking to hear.

Best of luck :blush:

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Stop loss hunting is real. When banks and large institutions are fined for " Manipulationg the Forex markets", this is exactly the deceiving tactics that they use to take your hard earned money. Read the following link, this is recent

When talking about that retail traders small size trades and that they will not be paid attention to, realize a retail trader is not a couple of traders tapping away at their computers. There are hundreds of thousands if not millions of traders orders sitting at certain levels just waiting to be snatched up (you know taking the other side of your trade)
If you don’t believe me just pull up a chart of EUR/USD (and actually these pairs are the most manipulated}. Look at basic S&R levels, and maybe a pattern or two(triangles are a very popular pattern that is also watched by these banks and institutions.Now at what levels would you put a buy, sell, stop loss order,( hmmmm TA 101) Well being as you me and about 2 million other traders are looking at the same patterns, these orders are going to all be in the same general area. Boom! move price to these levels (stophunt) and take the other side of the trade where they can buy or dump large positions.
. These banks and institutions get caught and fined quite frequently, and the fines they pay are equivalent to us paying a parking violation.
This is just my opinion and do your own research. The link again

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127

I am confident that that sort of price rigging is illegal for UK-based brokers and spreadbetting firms based here and regulated by the FCA. If they were tempted to do it, there would be zero chance of keeping it secret. As has been pointed out by the CEO of one of the bigger SB firms here in public, all those sorts of games would be ended as soon as there was the next round of redundancies.

I can’t speak for jurisdictions outside the UK, nor obviously for non-regulated activities like binary options.

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128

Yes, banks play this game but we are not their targets. My point is that many many losing private retail traders will say that the only reason they are failing is because they have been personally targeted. Maybe they have if they have used binary options or some brokerage based in Donkey Sh1t City, Republica de Las Paranoias, but otherwise they’re just making excuses so they can feel better in themselves. They were not targeted by RBS.

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129

Stay away from the popular level, like .5 or .00 or S and R level, banks do see where the cluster of sell and buy exist.

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130

hiya @chi-take

could you give an example? or explain how do you read these numbers?

tnx

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even if they are not targeted by local banks, The Bank of America or Federal Reserve or both can’t move GBP(or any pair) up/down?

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MM 100% use “Stop Hunts”.
Ask any Market Maker.
MT4 actually has a manual that that shows MM how to “clear the board” or hit all the stops in a range. There is actual functionality built in for them to take out Stop Losses.
Their job is to make money and they do that by taking the momey of retail traders.
The long wicks you see are stop hunts by the MM.
It’s not bulls and bears fighting it out.
The Forex market is the most manipulated market in the world and the MM use every tactic they can to take our money.

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133

hiya @cstayton

Does this mean MT5 brokers/platforms are fair or this applies to MT5 too? What about cTrader? What platform is the most less manipulated one?

Tnx

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Oh believe the man. MetaTrader supplies a piece of software to brokerages that allows them to do any number of things if they so wish. Even things like platform disconnects. Not supplied for clandestine purposes. But open to big time abuse by an unscrupulous broker. It exists. Fact. Not fiction. And in this instance: DON’T ask me how I know. And it follows that any unscrupulous broker with proprietary software can accomplish the same with ease.

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Hi @campione

This page should explain well.

If you are using MT4, there are some indicators for that. Please search by “round number indicator mt4”.

I added .5 in my note as well, because such numbers easy to think psychologically become where a lot of traders allocate stops. Of course you can utilize that for your entry after the positions were hunted.

I also found SL hunt does not frequently affect when trading at daily bar/candle.

Hope that helps. Cheers,

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136

Google “metatrader virtual dealer plugin”.

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137

Your post below this had me in stitches. You left Belize off of your list.

Amazes me really. Everyone kicking back at these regulators. These regulators didn’t wake up one morning and have a get together and a singsong and with tea and scones and decide that they’d mess with the trading industry, particularly the retail FOREX trading industry, simply because they had nothing better to do that day or for the next year. People were getting ripped blind not only by an unregulated industry and unscrupulous brokers but by themselves too. The solution: let’s go offshore, open an account with an unregulated broker, and problem solved. Madness.

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I’m sure they could do this. But its nothing to do with private retail forex trading. These giant banks don’t target private retal forex traders as a group, nor the individual traders who come onto these boards and say their broker targeted them personally. Of course, if the underlying market price drops 10 pips, any broker is just going to have to follow that move. But no one broker can move the market to target one trader and that’s what these guys are often saying.

In a tightly regulated jurisdiction like the UK, stop-hunting by a broker against their own clients is illegal. The penalties for this far exceed whatever they could gain from triggering a stop.

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139

End of the day, let’s suppose a trader believes brokers hunt stops. Suppose they have cast iron evidence. And their regulator won’t or can’t do anything.

So now he’s not able to use his TA skills as his edge because whatever the TA says the broker can do the opposite at any time.

Effectively, he is now gambling, as his skills will have no effect on how he plays the game or its outcome. He is gambling in a casino where he knows the wheel is rigged.

And yet, he keeps coming back to the same table and putting his chips down to play the same game in the same way…

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140

thanks. you kept lots of magic strategy in your sleeves, each time you just give us a little bit to weed out lol :star_struck:

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That is not a trading strategy or EA. Just to be clear.

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142

Here’s a nice shiny new article (updated on Friday). I reckon it gives a pretty nice overview and is fairly balanced and addresses just some of the issues and concerns raised on this thread:

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143

I don’t know that there’s any one broker that’s less manipulated than any other. Market Makers use the FX market to make money. They do that by manipulating the marker in their favor but the also only have so many tools they can use. Fear, impatience, inducing traders to take positions in the wrong direction, stop hunts… It also costs them massive mounts of money to move the market and they do NOT have unlimited equity so they can’t just arbitrarily move the market.
Learn what the market makers moves are and how they trade, and you start trading with them instead of against them.

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hiya @cstayton

thanks for sharing your nice comments and advises.

I’m happy to know? Wanna send me its links, please?

Tnx