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The only thread you will ever need: FX Exposed!

  • #541
  • May 25, 2018 9:29am May 25, 2018 9:29am
Quoting mades
{quote} Unfortunately that tells me that you don't understand the basics of how the price moves. What makes it tick up or down and why price can jump suddenly let's say 10 pips. Liquidity vacuum is not a fairy tale. It has nothing to do with fat finger too, it is a part of mechanics of how prices are quoted. I really, really suggest you to google the term and dig deeper. By the way, do you have an idea how much capital is needed during EU/US overlap to move major pair by 1 pip? That information is available from the report of Bank of Japan. You...
hey mades, im going to google this term, do you have any sites or books in particular that you recommend, thanks.
  • #542
  • May 25, 2018 9:35am May 25, 2018 9:35am
Quoting FundmntlTrde
{quote} Excellent video, Brother. During news events, if traders choose to enter trades manually and not pending orders, their orders get filled far away using slippages and also spreads widen - another huge disadvantage for the Retail trader. Keep it going and God bless you for the effort and time you are investing in educating folks here.
i am afraid you arent aware how pending orders work on the most widely used MT4 platform.
in short: to execute they will be converted to market order, and thus executed as such once their price level reached.
and thus they arent absent from the same slippage and wider spread issue...if anything more vulnerable to it!
if your broker is semi decent and your timing is good ( else why to enter right on the news) 0.5-2 minutes after the release of news you can usually get into the market without major slippage or overly wide spread, without a problem.
indeed, the high impact news release is usually a time where retail has advantage, as can quickly get in and out to positions without needing to load-unload large volume.
as bigger players adjust their positions after the news, their volume tend to make a divergence from the mean far enough to profit from the equilibrium once the dust start to settle.
i look at the things from a scalper/short term trader view, and yours maybe a different one.
there is always, always another trade!!
  • #543
  • May 25, 2018 9:43am May 25, 2018 9:43am
Thanks for your insights!
Is the SM/DM indicator based on future volume data?
  • #544
  • May 25, 2018 9:46am May 25, 2018 9:46am
Quoting profitfarmer
{quote} i am afraid you arent aware how pending orders work on the most widely used MT4 platform. in short: to execute they will be converted to market order, and thus executed as such once their price level reached. and thus they arent absent from the same slippage and wider spread issue...if anything more vulnerable to it! if your broker is semi decent and your timing is good ( else why to enter right on the news) 0.5-2 minutes after the release of news you can usually get into the market without major slippage or overly wide spread, without a...
Thanks, ProfitFarmer. I agree that the second approach of entering a trade on retracement after news move (could be on 5 Min or 1 Hr; assuming that the price has not shot up or down too much - Can use ADR to judge that ) would help with the issue of slippage and wide spreads. I am still trying to get my hands around Fundamental / News / Sentiment / Technical trading and how i can make it happen... and came across this thread and sharing and learning...
  • #546
  • May 25, 2018 9:57am May 25, 2018 9:57am
"Thanks for your insights!"

You are welcome brother.

FF
www.sme-fx.com
  • #547
  • May 25, 2018 10:22am May 25, 2018 10:22am
All of the stuff you are discussing and showing in the videos make a lot of sense.

However, I still feel like there is no means available to me that could help me make any use of it at the moment.

I could be just blindly guessing that someone is likely to push the price one direction to liquidate the side with bigger positions.

But, how do I know without your great IQ and superior indicators which side is bigger. HELP
  • #548
  • May 25, 2018 10:23am May 25, 2018 10:23am
Hi FractalFreak, If a trader uses hidden stop loss ( Could be an EA that has the value but it is not a hard stop loss ) how would SM deal with these scenarios?
  • #549
  • Edited 10:41am May 25, 2018 10:24am | Edited 10:41am
Jury is still out there for me to make a sound judgement on what is being shared. Some is legit and some still requires more sound principles to come to a concrete conclusion. What I know for sure with absolute certainty to be true for DM, Semi-DM, Semi-SM and SM traders is the fact that probabilities remain the same for everyone when it comes to pure price movements on any chart on any timeframe or tick. As I have said before, I make more during price manipulations by following the direction of stop hunts but nothing is perfect in life given the tools and avenues available to us retail freaks with high hopes and desires to make it in this industry.
I have over a 1000+ profitable trades in such stop hunt ones since 5/1 and I have also losing trades that I am forced to take on Fridays to avoid weekend exposure (which I wait till Friday to see if the fakeout/manipulation ends up in my intended direction).

Here's one example of a fabulous GCAD trade in my breakout strategy that did not go well in my direction (and I also trade a bounce strategy in parallel and hence the reason I can tell with 100% confidence backed my facts and data that for every breakout (fake or legit), there is always a corresponding bounce happening elsewhere in the market. Please refer to my post on my version of Newton's 3rd Law:
VeeFX Law of price movements in FX markets: Every Action has a equal and opposite binary reaction.

With that said, here are some screenshots to reflect and support what Mr. Freak is trying to convey. Stop Hunts are Legit, manipulations are legit, competing forces will always drain your account. It is the core function of market-making business for decentralized Markets to function efficiently. There is a reason why Global FX markets are not centralized. That is why I keep on saying... YOUR STRATEGY MUST INCLUDE FEATURES OF WHAT MARKETS HAS TO DO TO SURVIVE !

Proof is always in the details (and I trade without looking at charts for this very reason. Starring at charts gives the manipulators the added advantage of manipulating us. There is a tremendous amount of research done on Optical Illusion. Google it guys! Arrow on charts represent the timeframe I took the trades on and many so called "Price Action" idiots don't even track which timeframe they took the trades on)

Enjoy!

Quoting profitfarmer
{quote} i am afraid you arent aware how pending orders work on the most widely used MT4 platform. in short: to execute they will be converted to market order, and thus executed as such once their price level reached. and thus they arent absent from the same slippage and wider spread issue...if anything more vulnerable to it! if your broker is semi decent and your timing is good ( else why to enter right on the news) 0.5-2 minutes after the release of news you can usually get into the market without major slippage or overly wide spread, without a...
I have enjoyed and respect your contribution on FF so let's have a deep dive into this as there is a whole lot more happening behind the scenes in MT4 that is not visible to the retail traders. For reference on where I am coming from, Please read my recent posts if you can spare some free time.

I asked in my recent post, Why do any retail broker (MT4 or any other platform, does not allow traders to change the order size of a previously submitted limit or stop order? Please answer this question for me.

Another related question... why do brokers allow to submit a 1000 standard lot size worth of pending order on a micro account size?

Another related question... why brokers cannot check available margin on a pending order at the time of submission? (you already answered this but prefer to clarify for this thread readers)

Another related question... Do you think pending orders sit on the brokers platform or server? If the answer is a resounding yes, you are highly mistaken. Mr. Freak can confirm this for us but he chooses to drag this thread along and I may not be around after this weekend so lets get on with this fascinating topic that EVERY RETAIL TRADER MUST UNDERSTAND before they enter their next pending order or stop loss or take profit. Converting these "Pending" order types into Market Orders is the biggest vehicle of income (from manipulation) offered to brokers by their LPs.

You got to Interactive Brokers TWS platform and you will find 100s of order types in regulated markets. But when it comes to IDEALPRO for FX, none of those "order types" are applicable to retail traders. This is not rocket science to add 2+2.

Quoting VEEFX
{quote} I have enjoyed and respect your contribution on FF so let's have a deep dive into this as there is a whole lot more happening behind the scenes in MT4 that is not visible to the retail traders. For reference on where I am coming from, Please read my recent posts if you can spare some free time. I asked in my recent post, Why do any retail broker (MT4 or any other platform, does not allow traders to change the order size of a previously submitted limit or stop order? Please answer this question for me. Another related question... why do brokers...

I only open my mouth when I know sh*t for sure. I bet no one knows we can do this so here's the evidence of what brokers can and cannot do. I just opened a 100 standard lot position on a $250 sized account
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Staying in my lane...
  • #550
  • May 25, 2018 10:46am May 25, 2018 10:46am
This is how MT4 works by default: https://www.forexfactory.com/showthr...62#post8512162
https://www.forexfactory.com/showthr...78#post8511378
  • #551
  • May 25, 2018 10:50am May 25, 2018 10:50am
Mr. Freak,

Knowing what I shared above on limit orders.... if I am a A-book profitable trader with $1M account size and have such a position like GCAD in loss, please tell me if the next step I outlined below will have ANY effect on the manipulation techniques. Using GBPCAD as an example to keep the readers entertained....

 

  1. My average open Short position is at 1.7127 on GBPCAD
  2. Assuming london open is next 15 mins. I place a Pending Short order of 100 standard lot size at 1.7100 (assuming I have free margin left in my account)
  3. Question: Will the price move to stop hunt at 1.7100 "psyche" level to take out my "fake" pending order in order for me to quickly close my losing short positions ?

I am trying to have a intelligent conversation with you :-)

Staying in my lane...
  • #552
  • May 25, 2018 10:54am May 25, 2018 10:54am
Quoting alphaomega
This is how MT4 works by default: https://www.forexfactory.com/showthr...62#post8512162 https://www.forexfactory.com/showthr...78#post8511378
Rest is all good but have to disagree on #1. There is no "internet latency" involved or happening in all markets. That is completely false. It applies only when pending turned into market order which results in a inherent slippage.
Staying in my lane...
  • #553
  • May 25, 2018 11:07am May 25, 2018 11:07am
Quoting VEEFX
{quote} Rest is all good but have to disagree on #1. There is no "internet latency" involved or happening in all markets. That is completely false. It applies only when pending turned into market order which results in a inherent slippage.
Latency causes (or may cause) slippage with market orders! This is true for all markets. (FX, stock, futures..)

On the other hand, slippage with limit orders....this is impossible! And the fact that we can experience slippage with limit orders in MT4 just shows that we can't use real limit orders with MT4. But this is technical limitation of the software and the retail fx market. It's not necessarily a scam.
  • #554
  • May 25, 2018 11:10am May 25, 2018 11:10am
Quoting aen
All of the stuff you are discussing and showing in the videos make a lot of sense. However, I still feel like there is no means available to me that could help me make any use of it at the moment. I could be just blindly guessing that someone is likely to push the price one direction to liquidate the side with bigger positions. But, how do I know without your great IQ and superior indicators which side is bigger. HELP
Hi Aen,

I don't presume to speak for the OP, but may I suggest you stick around and HELP yourself as more material is presented?

Respectfully,

G'DAY
  • #555
  • May 25, 2018 11:22am May 25, 2018 11:22am
Quoting alphaomega
{quote} Latency causes (or may cause) slippage with market orders! This is true for all markets. (FX, stock, futures..) On the other hand, slippage with limit orders....this is impossible! And the fact that we can experience slippage with limit orders in MT4 just shows that we can't use real limit orders with MT4. But this is technical limitation of the software and the retail fx market. It's not necessarily a scam.
Sure. I understand but I am not getting into the technicalities of how limit orders are designed in retail FX or in MT4. What I am saying happens across all broker platforms including locally installed and those who offer web browser versions. Same is allowed with FXCM TS2 platform and I do not think the limit orders "sit" locally on our hard drive waiting to be triggered. Maybe that is true but that does not explain why the 'feature' of modifying order size on a active pending order is not allowed... across all brokers that I have tested on. There seems to be a specific reason and I think (I will just go ahead and say it!) the reason is related to LPs. Limit orders (by design) go to LPs to create an aggregate view of retail market to help LPs with their order flow. Ofcourse there is no way to prove any of this as this is insider information but hopefully our friend here could shed some light on this for us.

Quoting VEEFX
{quote} Sure. I understand but I am not getting into the technicalities of how limit orders are designed in retail FX or in MT4. What I am saying happens across all broker platforms including locally installed and those who offer web browser versions. Same is allowed with FXCM TS2 platform and I do not think the limit orders "sit" locally on our hard drive waiting to be triggered. Maybe that is true but that does not explain why the 'feature' of modifying order size on a active pending order is not allowed... across all brokers that I have tested...
PLUS there are two more specific reasons why the FX market structure is designed this way. Let's get into that as and I am usually amped up on fridays :-)

Continuing with my thought provoking mantra... let's do some more Q&A...

Question: Why is a check on "available Free margin" designed to be done only at order open? There is a SPECIFIC reason why which aids the broker to TRIGGER margin call to traders who simply cannot do math or understand mathematical correlations or HOW margin works in a leverage account or who Required Margin is calculated or how required margin varies by pair or how required margin is affected by intra-pair pricing....remember, when I am typing this, I am always thinking about my version of Newton's Law that applies universally to Foreign Exchange Markets.

Question: How does Retail Broker manage his overall book of exposure against his available line of credit? How can they prevent getting margin calls from their line of credit providers (who are also the SAME LPs that provide price feeds!!!) ? Can you imagine Brokers not knowing their overall net exposure and overall max exposure across all their retail clients and just assume "oh yeah... let them trader whatever they want because in the end, they all will lose!" type mentality when it comes to millions of dollars at risk against their line of credit.

Question: A bit unrelated but let me ask it anyway here... What does line of credit from LPs have to do with swap rates that brokers charge every retail trader?
Staying in my lane...
  • #556
  • May 25, 2018 11:43am May 25, 2018 11:43am
VEEFX,


" Using GBPCAD as an example to keep the readers entertained..."
we can do that experiment..........................but not today.....Iam done for the day....

good weekend everybody...

FF

PS: I may post over the weekend or not. We will see.
www.sme-fx.com
  • #557
  • May 25, 2018 11:44am May 25, 2018 11:44am
Quoting FractalFreak
"Hi FF I have a quick question for you. Is trading long term with large account with low leverage with swaps on my side a good idea? how does SM deal with positions that are based on weekly/monthly charts? Or are swaps just a way to get people into large DD? Because i have been doing decent trading like this for the last several months and just want to know if its a illusion...lol" Hallo dear, first of all, please watch the video above adressing a question by another member here. Unfortunately, the SM cartel has specific tricks against FX long term...

what an eye opener ! Thanks for that
  • #558
  • May 25, 2018 11:44am May 25, 2018 11:44am
" for sure with absolute certainty to be true for DM, Semi-DM, Semi-SM and SM traders is the fact that probabilities remain the same for everyone when it comes to pure price movements on any chart on any timeframe or tick"


NO! You missed the whole point, friend.

FF
www.sme-fx.com
  • #559
  • May 25, 2018 11:45am May 25, 2018 11:45am
"I don't presume to speak for the OP, but may I suggest you stick around and HELP yourself as more material is presented?

Respectfully,"


very good point.......
www.sme-fx.com
  • #560
  • May 25, 2018 11:48am May 25, 2018 11:48am
NOTE:

The quesiton of which lot sizes will become detectable or even move any FX market is a VERY big one.
And I do have some experience there.
But all this is too early.
Basics first.

Respectfully,
FF
www.sme-fx.com
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