the broker pushing to stop you out..a myth or a real thing ?

ok...i read here and there about brokers that hunt your stop loss...i never really believed that and ignored it...and i read some senior traders that says its wrong to blame brokers for getting stopped out

but these 2 days..when i open a trade without putting a stop loss everything goes fine....when i gain some pips and put a stop loss...it takes literary a min to see the price goes 20-30 pips up or down (to your stop-loss) in a split second...so fast its hard to see !!!!...lets say i i made a trade in eurusd to sell at 1.2870...the price now is 1.2840...i set my stop loss to 1.2870..one min later (for a split second) the price jumps from 1.2840 to 1.2880 and then go back down to 1.2840 !!!!

so today i made a test...everytime i make a trade...i will wait till i gain 20 pips and i will set a stoploss at my be..people am not kidding, the price spike 1 min later and stop me out...in a split second

is that normal ??????....do i have to HIDE my stoploss from my broker to make money in this thing ??

Hint: Stop wasting your time on "XMinutes" Timeframes and set proper stops.

so thats normal ?....if my entry was such a bad one...why the spike didnt happen untill i set a stoploss ? :S

and this is not a one time thing...it happens often...and is it normal for a spike to happen in a split second ?..i mean 30 pips to go up THEN DOWN in a split second

Hint: Get yourself a decent broker. And then stop wasting your time on lower timeframes and learn to set proper stops.

ok thank you...move along

and one more thing...why the f*ck you keep talking about wasting my time in small TF...when did i talk about trading in a small time frame ?

lol

It's not a matter of TFs, in small TFs market move in the same way (patterns) he do in bigger TFs, this is how market is (fractal).

The thing is, lower timeframes are bad because of the huge spread, anyway it's normal, everytime you buy, market go down of 10pips in a matter of seconds, and if you put a SL, market go to hit your SL and then go up again (your SL and Sls of 10000 other traders), that's because 95% of traders put SL in the same point, and yes price inevitably go to hit them (SL are just orders, and market is created to fill orders of all partecipants, orders are the only thing that move the price, and yes something like 40% of market movements are caused from SL orders).

So, it's not just a myth, if you buy and put a SL 20pips down, you just put in the market a "SELL Order" 20 pips down, the price move where there are orders to be filled, and when many people want to sell on a determined price, it may occur that price go in that area to fill the various orders.

How can you use this fact?

1) don't use SL. (yes i know many ppl will blame me for write this lol, but it's how i trade, when i see it's time to close and have a loss, i just close trade manually, because i KNOW that when i put a SL it will be hitted [sounds like magic lol])

2) try to understand where people have their SL, and go to hunt them (yes is unhetical but we all are here to have profits).

3) try to understand where people have their SL, and after hunted them, reverse your position and come in the market from a lower price (in the example of a buy sl).

Ok, sounds easy, but it is not, anyway just try on a demo to trade like a stop-hunter (of course look the trend etc, don't be a kamikaze) and you will see how funny and predictable are some price-movements (usually the ones that let traders stopped out magically)

hmmmm...intreseting


thanx alot for the explaintion...i will keep that in mind

That's great you found a decent broker to the point of recommending a "decent" one, what is your definition of a decent broker and who do you recommend?

There are some huge egos on these boards, just ignore them. Most of them are spewing platitudes anyway.

Are you trading a demo or live account?

demo at the moment

I never had any problems with stoploss...it is all about timing.
I trade only at levels off SR, my SL are only about 30 pips,
and it is almost never hunted by broker.

Nobody places 20 pip stops on daily timeframe.

When you got your timing right, you will see that the broker are actualy
hunting your take profit

ps. you just said that you trade demo account....do you realy think that
brokers are wasting their time hunting stops on demo accounts!??

That is a good point.
They are desperate for demo money.

A 20 or 30 pips move in one minute is totally normal, pull up a 1 minute chart for EURUSD today and You'll see many 1 min. bars with a 20 pips range. The fact that price moved against you after setting a stop loss is just a coincidence.

If your stops are being consistently hit on a demo account, it's because of your placement. The only way to know for sure is to keep precise track of everything you do, including screen-shots of everything.

Unfortunately, many folks want to think it's the broker taking them out, but it's just poor placement.

its always easier to blame someone else, i guess.

but seriously koolo, i though you were talking about a live account. if you were i would have believed you about the stop hunting and told you to find a different broker. but the fact that you were trading on demo flat disproves the stop hunting thing. like mentioned above, why would a broker want your demo money? lol. but anyways, try using bigger stops. at the company i work for, when we use stops the absolute MINIMUM is 50 pips. nothing less.

what i talked about wasnt on demo...now i am using demo

do people have to be rude these days even with no reasons ?...seriously i dont get it...does it make you feel good ?

Hey koolo, dont get angry, the more time you "waste" here, you will get used to it, cos this happens all the time and to anybody!

And regarding the hunting problem with the SL,
it is one of the two possible scenarios,
or you realy trade at some bucketshop(change the broker),
or your timing in placing trades are just wrong(learn more).

Wish you good luck

Tunera,

Its refreshing to see this post, more traders would succeed if they could just grasp this fact "The Market is just a machine that processes orders".

Regards,



BabeFX.