Hi everyone,
I was operating a demo account and got my stop loss in one trade but the candle wasnt reached. Do you know how is that possible?
Hi everyone,
I was operating a demo account and got my stop loss in one trade but the candle wasnt reached. Do you know how is that possible?
This is likely because the NY session ended and the spreads increased. This happens daily, as well as just before important news events are released.
This can be happened because of the volatility in the market.
This would be called slippage, yes?
Hi @ponponwei,
I’m not sure the term slippage applies to a stop loss, but it’s a similar concept when SL’s are taken out due to widening spreads.
Slippage is when an order is filled at a different price than intended. When most traders talk about slippage, it’s usually with market orders when volatility is high, such as during news events. Limit orders prevent slippage, but then you risk the trade not being executed at all.
Oh okay I thought it applied to both scenarios! Interesting. I suppose if it’s a stop loss, market order is always the best route too despite the “slippage.”
That can happen for a number of reasons that cause volatility in the first place.
It looks like you were in a short position.
That means it is the ask price or buy price in the market that would trigger your stop.
Most forex charts will show you the bid price or sell price by default.
See if your chart has a setting that lets you view the ask price instead.
Then you can confirm if your stop price was reached at the time in question.
Can happen with spread
This is a very common thing that happens so don’t worry. This happens right before there is some news and also because of the volatility.
There are a few reasons behind it like the volatility of the market, increased spreads, and the NY session ended.
Spreads caused it most of the times. Like what happened to mine back then. I mean, if you’re a day trader, there’s no way on putting the trade to the next day (based on the server) since you would open and close your position in the same day…
Check on the price that your charts are showing you, whether it’s the bid or the ask price. Change the setting to ask price and you’ll perhaps see that you had reached your stop value.
Volatility of the market can be one of the reason, but like that user said, NY session is one of the main factor for that to happen.
Shitty broker? How many pips was the difference?
These peculiarities arise due to various factors like market volatility, shorting out the position etc. So yes it is a normal procedure which can happen in forex trading.
I would suggest that traders should use ribbon charts with 1 second time frame and analyse the chart thoroughly with a keen eye. The time taken to form the resistance and the particular instance where the price fell should be analysed with events happening around the globe. I think that will help with a lot of answers.
Sometimes there are glitches also present in the demo trading platforms. When I was using Atfx it had an automatic system of giving out percentages. Going by that indicator gave me wrong suggestions many times. As I manually traded with MT4 platform on Fxview I realised this. So that could have been the problem also, it happens with demos sometimes, tech issues.
The stop loss value I think is put in the fixed number rather than the trailing stop loss which works on the percentage of the loss. It is the reason that as soon as the security reaches a particular number the stop loss triggered.
The demo accounts do replicate the real world scenarios but in live trading it is very unusual. When I was trading in the markets using multiple brokers i.e. Hotforex, Etoro and Fxview I noticed once that my stop loss was also triggered due to an error but the customer support comes in handy and my issue was resolved. If you cannot find any concrete evidence for this trigger then do contact your broker.