Does any one know about the concept of stop/loss hunting by brokers?
I suspect that FXCM is engaging in it, tho I cannot prove anything.
Does anyone know of brokers who do NOT engage in Stop/Loss Hunting?
FXCM does because they have a deal desk… they essentially can manipulate the quoted prices that you are using to make your decisions.
Drop FXCM… They suck. Go get an account with EFX Group (http://www.efxgroup.com). 400.00 account minimum, its a part of MB Trading, one of the most respected brokers in the game, smaller and tighter spreads than any place else, faster execution, NO DEAL DESK, a true ecn, the price you get is the price in the market. They make their money off comission and not spreads like FXCM so there is no price manipulation or stop hunting because they don’t care what the price is in the market.
Places like FXCM hedge against their customers and take the other side of your positions. EFX does no such thing because thats not how they make their money.
Get a real broker and tell FXCM to go screw themselves.
Cheers!
I believe they all do on some level. These days, my opinion is that most people set their stops way too tight anyway.
The vast, vast, vast majority of stop-loss running complaints come from bitter traders unwilling to accept the fact of their own mistakes.
As gadamj said, they put their stops too close. Of course they got hit!
Suspect with no proof? Hmmm, borderline public slander of a company. Be careful.
I have never had my broker stop hunt me. However the market has successfully done so on many occasions.
Why do you use stops? How many times out of 10 do they get hit?
If you over extend your account SL’s will be neccesary, but if you use only a small % of your capital per trade, you can beat the market without SL’s, no problem.
Ahh, yes, the market used to go after my demo’s SL’s all the time… Now it only does it occasionaly…
I just more or less started to look at what the stop loss should be and not some set number, if it was too high (past a set number (30 or so) I wouldnt take the trade… Sometimes it would have been a good trade, sometiems not but its not in my rules… Typically I just wait and the price closes the gap before anways… so waiting would typically yeild about 5-10 more pips anways. (then again sometimes it dosnt, but its always a trade off)
Getting a little off topic since the discussion is about brokers hunting stops not if you should use them or not. I don’t need a lesson at this time about beating the market because I am already successfully doing so. You can do it your way and I will continue to do it my way. Happy trading:)
Oh my another loudmouth Texan. Here we smoke em.
Post your reports and let’s see what you have buster.
Go to forextown.
Oh I see you have already been in the trading systems area trying to hook people on this thing that has a 98% win rate and makes thousands of trades a week and all done on demo. Good luck on your hook! I won’t be one of them.
I told you, Ons rook julle in hierdie plek waar ek bly.
Now where is the ignore button. Don’t bother replying to my posts in future as I will not see them - that is if the function works.
Whiskey Tango Foxtrot!!!
What kind of gibberish is that? Have you had any potential fish jump on that hook yet? If not, try Forex Hippie Army Bastards. They will fall for anything. To many smart folks over here.
In all the time I have been on this forum, this would have to rate as one of the most ridiculous posts I have seen. :mad: :mad: :mad:
You [B][U]ALWAYS[/U][/B] use stop losses.
The risk of margin call is real. Your trade could go against you and blow right out.
Your stop loss will protect you in case of internet breakdown, power failure or computer failure.
Do some demo trading without a stop loss and see how long it takes for your demo account to disappear!!
Meanwhile the myth of brokers always trying to run your stops is corrected by reading the following hyperlink :
But they do force you to do FIFO on your account or make you open a subaccount so you can go short and long at the same time.
Of course they hunt your SL orders, They are playing the other side of the trade, and they know where you are ‘out’.
I do not use stop loss orders
(I ALSO DONT RECOMMEND YOU TRADE THIS WAY)
SO I almost never realize those unrealized losses.
Stop loss orders are for people who WANT to realize a loss,
so I have separated myself from these folks.
Smart margin management is more important. By using 1-3% of your margin at 400:1 leverage you can beat the market withOUT SL’s no problem 99% of the time.
In MT4 if you want your stop loss hidden from your broker, right click and choose “hide my stop from market maker”.
You also have the option of a reverse trail stop that will let you move your stop 10 more pips negative each time price comes within 5 pips of the original. Right click and choose “reverse trail stop”.
My favorite option is the annulment order. If you are ever in a bad trade and just wish it would go away like it never happened, just right click and choose “void order at no loss”. This one works great for “forex hedging”. Just null the bad one out and keep the winner.
Now there are no more excuses with these new options to blame the broker anymore. The finger should be pointed in a 180 direction back at self if screwed up.