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stop running

  • #1
  • First Post: Sep 26, 2006 8:39am Sep 26, 2006 8:39am
Regardless of our trading method, our stop placement method is pretty universal. What stops the bank traders, or MMs from running them? just curious about what you guys think about that. I mean it is pretty easy for them to see where all the stops are.
  • #2
  • Sep 26, 2006 8:51am Sep 26, 2006 8:51am
Quoting moneydude
Regardless of our trading method, our stop placement method is pretty universal. What stops the bank traders, or MMs from running them? just curious about what you guys think about that. I mean it is pretty easy for them to see where all the stops are.
Here's an idea - have stops set that they cannot see. I do this by using an expert advisor.

You can also use someone like CoesFX. CoesFX has agreements (I think they're contractual) with their backend partners that prohibit stop hunting their (CoesFX) client's positions. That's what I'm told, anyway.
  • #3
  • Sep 26, 2006 9:07am Sep 26, 2006 9:07am
When you get to the big leagues and stop hunting is a problem, the best way, in my opinion, is to code the stop into your EA. Therefore, the broker really sees no stop attached to a particular position, the EA stops the position out when your imaginary stop is reached.
  • #4
  • Sep 26, 2006 9:20am Sep 26, 2006 9:20am
Quoting moneydude
Regardless of our trading method, our stop placement method is pretty universal. What stops the bank traders, or MMs from running them? just curious about what you guys think about that. I mean it is pretty easy for them to see where all the stops are.
I also don't necessarily agree that the stops are universal regardless of our trading method.
  • #5
  • Sep 26, 2006 9:55am Sep 26, 2006 9:55am
Quoting moneydude
Regardless of our trading method, our stop placement method is pretty universal. What stops the bank traders, or MMs from running them? just curious about what you guys think about that. I mean it is pretty easy for them to see where all the stops are.
I would think the objective for a broker would be to fill orders-regardless of whether it's a stop or take profit. The more orders they fill, the more money they make. I am curious if anyone agrees with this and, if so, is it a factor in their trading strategy?
  • #6
  • Sep 26, 2006 10:01am Sep 26, 2006 10:01am
futile attempt

Quoting moneydude
Regardless of our trading method, our stop placement method is pretty universal. What stops the bank traders, or MMs from running them? just curious about what you guys think about that. I mean it is pretty easy for them to see where all the stops are.
THE MAN
  • #7
  • Sep 26, 2006 4:58pm Sep 26, 2006 4:58pm
Almost everyone who trades futures has heard of the Turtle traders who have been profitable for many years in US markets. They had a rule on placing stops that they did not place them with brokers which would reveal positions that could allow stop running. Stops were placed on trader's PCs or kept mentally so that when that price was hit the position was exited. The 14 turtle traders over a 6 year period recently reportedly made $1.66 billion in profits. Brokers and banks do run stops so beware of the problem. Market makers can make more money from hitting a 100 pip stop than from a 2 pip spread. I hear banks flush out stops at certain times of the day routinely.
  • #8
  • Sep 26, 2006 7:08pm Sep 26, 2006 7:08pm
Quoting richx7
Almost everyone who trades futures has heard of the Turtle traders who have been profitable for many years in US markets. They had a rule on placing stops that they did not place them with brokers which would reveal positions that could allow stop running. Stops were placed on trader's PCs or kept mentally so that when that price was hit the position was exited. The 14 turtle traders over a 6 year period recently reportedly made $1.66 billion in profits. Brokers and banks do run stops so beware of the problem. Market makers can make more money from hitting a 100 pip stop than from a 2 pip spread. I hear banks flush out stops at certain times of the day routinely.
Get the point, but haven't heard of a "turtle trader"
  • #9
  • Last Post: Sep 27, 2006 2:23am Sep 27, 2006 2:23am
This is the official site for turtle trading:

http://www.tradingblox.com/originalturtles/story.htm

This site has a download pdf explaining their system:

http://bigpicture.typepad.com/comments/2005/05/discipline_and_.html
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