Beat brokers at their own game - trading round figures

haha jhig, you're psychic. Thats my favourite stop amount.

What Boris says doesn't make any sense and is in my view totally BS.

Can he prove where and at which levels stops getting hit?
I doubt that.
He only talks about this round numbers. lol

I.e. stops mostly getting triggered when much more sellers came into the market but it didn't fall any further.
They were absorbed by the big guys.
The pros drive the price higher and trigger stops.

Yes there are ways to make it visible.

That is ONE example and somebody with basic knowledge of market structure will be able to spot that kind of divergences with the right tools.

lol, you seem to be arguing with yourself there!

When you say it apparently it makes sense but when Boris says it it's BS....well, oooh-k then

......but if you are placing a leveraged trade with a retail Forex broker, it is not going out to the "Marketplace" ( unlike a trade of 500 shares of Apple which must have a buyer and seller to complete a transaction ). Your retail Forex trade stays within the electronic confines of the retail broker you are using. The futures and commodities markets have always invited shady characters on both sides (market maker and trader) who find ways to manipulate outcomes.

In the late 1990s the personal PC and software platforms had evolved to such a very functional state, and the number of personal computer owners had skyrocketed and market makers were not oblivious to this, since they had been using computers for their trading for quite a while. Now, the average guy could start to play around with short term investing like never before.

And, in the past, quite a few unscrupulous brokers emerged, especially since retail Forex came along and caught on, because there is not a central exchange (which handles and records each transaction for each security). A Forex data feed was the most nebulous of all the markets back then because the numbers did not come from a central exchange. There were many bizarre situations which occurred to newbie retail FX traders using newbie FX brokers and stop hunting did occur within the confines of the broker's intranet and no singular datafeed. We used to compare datafeeds from different retail FX brokers and be amazed at the variations! There was definitely some wiggle room for brokers to stretch the limits. But there were also traders who didn't understand the first thing about trading and they were easy prey for marketing campaigns from brokers offering an unthinkable 500:1 leverage (think: tasty cheese and mousetrap). These were the first to cry out "Stop Hunting my Stops".

Now that the CFTC has sprouted some teeth (thanks largely in part to the many Forex scams the past 10 years) many of the unscrupulous brokers have scurried back into the shadows to contrive another slick scheme. But, these things have happened in all the markets and at all the exchanges where somebody else plays with your money for a while (your deposit) or lets you play with their money for a while (their leverage); since the first humans offered some food in exchange for something of value.

The big banks around the world, which handle the transactions for government purchases, importers and exporters, hedging of producers, etc. are the movers in the FX marketplace. Round numbers are nice in these transactions. All of the retail speculator's transactions combined is merely a thimbleful on the volume or amounts of currency actually exchanged. Because datafeeds have greatly improved the broker's manipulating the data has drastically reduced, and will continue to become more transparent.

If you want to feel safer about your stops being hunted by your broker, trade contracts on the CME and leave the retail FX brokers behind (you will also leave behind the sexy 100:1 leverage). Beware! There are sharks in that swimming pool, too.

Jeez, I only meant to write a few lines in response and got carried away because of the flat Friday market. Must be the coffee at 4:00 am, as I wait for the next intervention by the Bank of Japan's, because they know where the stops are in my mini account trade.........

pipsqueak4x

There are 2 categories of traders:

who follow the herd and believe in what they have been taught by the media,
and others who make their own mind and find out how it really works.

OH GOSH finally somebody will tell my stupid ass the truth!!!

Please sir tell us more!

Btw can I buy your radar?

Just so everybody is clear - Boris was and for all I know may still be paid to write these articles for a broker!

from his own bio:


so knowing that a lot of his strategies were concocted for a broker, wouldn't it make sense that the broker knows about this strategy and if they are in fact stop hunting they can just blast through the stops on this strategy as well???

but hey, draw your own conclusions...

Old thread I know but I found this thread AFTER spending the whole weekend back testing a totally different strategy but I noticed a regular occurrence at the 100 and 50 levels that concurred with the OPs findings.Test it yourselves , you will like it. It has a profitable edge. Green pips.

Below are two winning trades using pending orders to take advantage of the round numbers being targeted. I went out to walk the dog came back and two winners on Gold. Short then long. 11 pips tp, 20 pip sl. Set and forget, stress free and simple.

Here's one I missed, just too many opportunities really. M5 downtrend, strength meter showing Cad strong dollar week. A no brainer short to the 50 level.



I check the currency strength meter for possible opportunities, then look at the chart and look at where price is at regarding the 100 or 50 levels. Check the ADR isn't over cooked ,still room for movement. Then check the short term trend is with me. As long as I have a worthwhile gap, 15 or so pips to the level I am good to go.

Another gold short trade to the round number. I set a pending order again but watched it live this time.

Another 2 trades to the RN s. Keep it simple.Try it yourselves.

Two more nice quick winners this morning. This method offers multiple trades every day.

Try it,it takes practice but is well worth the work involved.

The high volume candle and the fact that we were just into the new hour led me to take this 7 pip winning scalp.

All done for the weekend now. Green Pips all

Two more trades targeting the RNs.

Try it yourselves,you will love it.





Green pips all

Another winner. EURAUD short. Currency strength meter showed eu weak aud strong, a no brainer trade.



two beautiful trades I missed cos walking the dog.





These levels act like magnets to price. Just try to trade with the main trend and go for the first test only for higher probability.

Strong dollar weak pound, downtrend in place, indies all agree to sell. 00 level begging to be hit. Job done.



I used a pending order for this trade, set and forget.

This is a very high probability low stress trading method

strong cad weak nzd, everything said sell to test the 0.8400 RN



Green pips all

Last trade of the day. Gold just loves bouncing around the 25 pip levels.



Green pips all

First trade of the day GJ short.