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Any use for stop hunting?

  • #41
  • Edited 11:04pm May 17, 2007 10:48pm | Edited 11:04pm
Quoting Lou
DB,,

I see that most of the posts have missed your actual point.

Dark says he goes after stops, but I wonder? I mean He cant move the market, so he (if he is telling the truth about it) must have an idea what the marketmakers are thinking/doing. If that is true. How does he know?

As far as that investopedia link goes by Boris S. I must have read it 4 or more times in the past. I simply think his explanation is not actually describing targeting stops well enough for (us) me to make use of it.

It doesnt use the typical example that you describe and that the chart posted above so graphically depicts.

I would like to see more on stop hunting as a trading tactic.

Lou
even you can move the market my friend. this market is all about herding... u only need to be the first cow that runs and Probably, if the environments shows reason to, then more cows will follow. Then soon the whole herd is moving.

my theory is this
imagine this....imagine alot of sell stops are pilled up At 1.324..say 1Billion...U see this using Technical analysis...then using an ECN u also see alot of orders there too...What if u bought near that price a volume of 1.5 billion....that will cause the price to move up to match your order and those stops would be liquidated? the market will MOVE when they liquidate...and if movement from reaction is fast enough...then herding takes place and people starts buying.

all darkstar is doing (well, basically) is combining Technical analysis and order flow. using this knowledge he can exploit supply and demand and force price movment
100% of traders are losers. Just that some win more than they lose!
  • #42
  • May 18, 2007 3:11am May 18, 2007 3:11am
Very interesting, then what ECN's are good to see these type or orders ? only currenex ?

Quoting Mr demark
even you can move the market my friend. this market is all about herding... u only need to be the first cow that runs and Probably, if the environments shows reason to, then more cows will follow. Then soon the whole herd is moving.

my theory is this
imagine this....imagine alot of sell stops are pilled up At 1.324..say 1Billion...U see this using Technical analysis...then using an ECN u also see alot of orders there too...What if u bought near that price a volume of 1.5 billion....that will cause the price to move up to match your order and those stops would be liquidated? the market will MOVE when they liquidate...and if movement from reaction is fast enough...then herding takes place and people starts buying.

all darkstar is doing (well, basically) is combining Technical analysis and order flow. using this knowledge he can exploit supply and demand and force price movment
  • #43
  • May 18, 2007 7:00am May 18, 2007 7:00am
Quoting Mr demark
As darsktar said, if u are a tech. trader they know where the stops are. You, in this case placed the stop at the sweetest possible position for stop hunters. I recommend placing it 15 pips above Support or Resistance or else u will get stopped out. The market is much eaisier to move than u think. Much much easier. If u cant manage the risk of the extra 15 pips then dont trade it.
I generally place it as you suggest, 10 or 15 on the other side of S/R, and agree that's the way to do it.

But, that's exactly where they usually get hit. After all, that's where tech traders place them, and the stop hunters know that's exactly where they are.

In this case, I had my reasons for doing what I did.
  • #44
  • May 18, 2007 7:03am May 18, 2007 7:03am
Quoting Mr demark
even you can move the market my friend.

What if u bought near that price a volume of 1.5 billion....
If it takes 1.5 billion volume, then I can't move the market. I doubt there are too many readers on here that trade 15,000 full standard lots.
  • #45
  • May 18, 2007 4:41pm May 18, 2007 4:41pm
ok, my bad. i should've used a smaller example. like 20 mio. but believe me if a market order cannot be matched then it will go to the next availiable price which is usually worst. that is how the forex market moves.
100% of traders are losers. Just that some win more than they lose!
  • #46
  • Last Post: Jun 4, 2007 3:27am Jun 4, 2007 3:27am
Quoting mbqb11
you guys need to think more about the micro-structure of the forex market.

Oh yeah I use an ECN.

Mike,

Why is it necessary to use an ECN? Is it due to the advantageous spread that you get, which you need for this sort of strategy, or is it that you can see the amount of orders coming in to the system, which is unavailable through a retail broker?

Steve
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