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Forex Stop Hunting - What is it?

  • #41
  • Dec 26, 2014 8:04am Dec 26, 2014 8:04am
if you use multiple positions instead of the one in one out philosophy of trading you won't have this problem. A 30 pip stop loss is 1/3 of a penny. Try trading stocks or any other market instrument with a 1/3 penny loss and you get laughed out of the industry.
  • #42
  • Dec 26, 2014 10:41am Dec 26, 2014 10:41am
Quoting nanningbob
if you use multiple positions instead of the one in one out philosophy of trading you won't have this problem. A 30 pip stop loss is 1/3 of a penny. Try trading stocks or any other market instrument with a 1/3 penny loss and you get laughed out of the industry.
I'd contend instead of comparing forex to stocks, why not look at the system which the person is trading. Along with how so many trades are ready to take a position, and once they stop out, they freeze. The portion of you freezing, is what needs to be looked at. Being able to overcome that freeze, is what will allow you to trade as the robots do... Without bias.
  • #43
  • Jun 9, 2016 12:41am Jun 9, 2016 12:41am
"stop hunts" or whatever has a motive behind it. I don't think multi million and billion dollar institutions care about your $100 stop loss money. But they do want a better price at whatever they are buying. Stop hunts as you call them normally always spike down to a recent resistance/support level or the 200 Moving Average. I think it's a bit more complicated then a retail trader's measly 30 pips.

A real stop hunt would be the broker widening the spread to pick up or cancel out orders. If you are worried about that use an ECN but be careful around news times because I've seen it myself where the spread opens up like hole in the floor.
  • #44
  • Jun 9, 2016 1:11am Jun 9, 2016 1:11am
To put it simply a stop hunt is a term that retail traders use when they loose a trade

Do you honestly think that the banks brokers and cooperations exist in the market to take out pocket change?
20 Pips a day keeps centerlink away
  • #45
  • May 15, 2019 1:29pm May 15, 2019 1:29pm
Quoting Since82ny
A real stop hunt would be the broker widening the spread to pick up or cancel out orders. If you are worried about that use an ECN but be careful around news times because I've seen it myself where the spread opens up like hole in the floor.
I once joined an Aussie broker that widened spreads like crazy.

I learned my lesson, I cancelled my account with them.
  • #46
  • Jul 26, 2020 10:57pm Jul 26, 2020 10:57pm
Quoting vorschlag
I don't get one thing as far as stop hunting is concerned. Our trades are tiny drops in this market. Why should any broker hunt our tiny trades? I think it is not reasonable from their side to move market for the sake of stoping out a particular trader's position.
liquidity
Steps to profitability: Collect data, money management, stay bored
  • #47
  • Jul 27, 2020 3:20am Jul 27, 2020 3:20am
I've only dealt with ECN brokers myself, but idk, I definitely feel like technical rebounds are more commonly at play than stop loss hunts. I feel like the concept of a stop loss hunt implies a lack of accountability for our trade set ups, when we should rather just be more conscientious of these sort of things. I have no experience with a market maker broker, however, and can't really say anything to it. Sounds like some of you guys deal with some shady ass brokers though haha
  • #48
  • Jul 27, 2020 5:57am Jul 27, 2020 5:57am
Quoting PaulDaemon
To put it simply a stop hunt is a term that retail traders use when they loose a trade Do you honestly think that the banks brokers and cooperations exist in the market to take out pocket change?
amen
  • #49
  • Jul 27, 2020 11:07am Jul 27, 2020 11:07am
I worked at an investment bank for a few years and I can assure you that there is no such thing as stop hunting. At least not the way that retail traders think there is. On a typical large bank dealing desk, the average order size is 10 to 50 million, and 100 or 200 million dollar orders are commonplace. When you are doing that much size do you really think that 10 or even 20 and 30 pips make a difference? When markets move and you are trying to place 10 or even 20 pip stops you are just getting stopped out due to randomness and large orders that occur on a regular daily basis.
  • #50
  • Jul 27, 2020 12:26pm Jul 27, 2020 12:26pm
Do you mean this???!!!
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  • #51
  • Aug 4, 2020 5:32am Aug 4, 2020 5:32am
Quoting fxbroker
{quote} Nice insight and explanation on the subject matter. But I think this is the way market functions and why it oscilliates, there is nothing evil here if it is a general phenomenon that happens at the same time across all trading platforms irrespective of the brokers one is using. instead of using the word stop hunting an alternative word is false breakouts this is common with what some people might call camarilla tricks, (believe it or not camarillas are real and they are the major participants) and this action likely to happen before major...
thankyou very very very mucho!
Steps to profitability: Collect data, money management, stay bored
  • #52
  • Aug 4, 2020 5:36am Aug 4, 2020 5:36am
Quoting Since82ny
"stop hunts" or whatever has a motive behind it. I don't think multi million and billion dollar institutions care about your $100 stop loss money. But they do want a better price at whatever they are buying. Stop hunts as you call them normally always spike down to a recent resistance/support level or the 200 Moving Average. I think it's a bit more complicated then a retail trader's measly 30 pips. A real stop hunt would be the broker widening the spread to pick up or cancel out orders. If you are worried about that use an ECN but be careful around...
true, that they don't care about your trade.
but the need liquidity to open their trades. Hence, stop hunting.
Steps to profitability: Collect data, money management, stay bored
  • #53
  • Jan 28, 2023 9:16pm Jan 28, 2023 9:16pm
Very interesting thread, and I can now confirm that not using stop loss too is not a wise idea either
  • #54
  • Jan 29, 2023 3:19am Jan 29, 2023 3:19am
This is done by driving the price of a currency pair beyond a key level at which a large number of stop-loss orders have been placed, in order to cause those orders to be executed and then subsequently profiting by reversing the price movement. This practice is considered unethical by many traders and is illegal in some jurisdictions.
Hello.
  • #55
  • Feb 1, 2023 5:32am Feb 1, 2023 5:32am
I always put stop hunting down to the forex market and participants looking for pockets of liquidity. For example, lets say there is an obvious level for the general market to place their stops when they go long. Doesn't that then become and obvious place for buyers looking for a bargains to scoop up some lots i.e. they are obvious sellers at that level? And does that theory not extend to some of the false breakouts you find when trend and support lines are broken temporarily?
  • #56
  • Jul 15, 2023 10:21am Jul 15, 2023 10:21am
Stop hunting is art of taking profits at the levels or often beyond them where buyers or sellers place their stops. Even if the trend goes down, the market may go up temporary to hit the area of stop. Thus, it gets liquidity to proceed with the main move. Stop hunting occurs regardless of the trend because there are always enough areas with stops that makes sense for market makers to hit those areas.
  • #57
  • Last Post: Jul 15, 2023 10:35am Jul 15, 2023 10:35am
They are not out to get you. We are just too greedy sometimes.

To minimise stop hunts, you can always enter solely on the retest.

Price breaks a high, it'll do a pull back, then you make your order. This simple concept is very hard to do
Trading is gambling. So gamble responsibly.
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