Are My Stops In Season? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Broker that has fixed buy-stops/sell-stops, min/no slippage? 5 replies

Fixed stops loss or atr stops ? 0 replies

Mental stops vs hard stops 1 reply

I am looking for EA to put Buy Stops, Buy limits, Sell limits, and Sell Stops. I will 0 replies

Attachments: Are My Stops In Season?
Exit Attachments

Are My Stops In Season?

  • #1
  • First Post: Jul 2, 2007 12:25am Jul 2, 2007 12:25am
Some Newbie Questions:

What is STOP HUNTING?

Is it for real?

Who are the hunters?

What can be done to protect yourself?

Quiet! I hear something moving out there. :surprised
Maybe I'm just imagining things.

I appreciate your time!

FXS
  • #2
  • Jul 2, 2007 12:38am Jul 2, 2007 12:38am
Quoting FXSurfer
Some Newbie Questions:

What is STOP HUNTING?

Is it for real?

Who are the hunters?

What can be done to protect yourself?

Quiet! I hear something moving out there. :surprised
Maybe I'm just imagining things.

I appreciate your time!

FXS
1. Pushing the price into obvious stop zones, before the price races off in the other direction. (Picture ride on lawn mower run amok on a flower bed).
2. Yes.
3. The Banks mostly, some market maker brokers also seem to like to join in the fun.
4. Don't put stops in obvious places or don't use stops.
The breaking of a wave cannot explain the whole sea.
  • #3
  • Jul 2, 2007 1:07am Jul 2, 2007 1:07am
Quoting Craig
1. Pushing the price into obvious stop zones, before the price races off in the other direction. (Picture ride on lawn mower run amok on a flower bed).
But, not targeting my stops specifically, as some stuff that I've read
seems to imply? (I guess maybe it doesn't really matter which case
is true!)
2. Yes.

3. The Banks mostly, some market maker brokers also seem to like to join in the fun.
I think there are people who post here on FF who say they hunt stops.
Is there maybe a method that small traders use to, as you say "join in the
fun" with these bigger "predators"? If I fade current price movement
and it reverses quickly up to recent S(/R) and I profit from the scalp,
is that what I've just done?
4. Don't put stops in obvious places or don't use stops.
Living on the edge?
Thanks Again!

FXS
  • #4
  • Jul 2, 2007 1:18am Jul 2, 2007 1:18am
Quoting FXSurfer
Some Newbie Questions:

What is STOP HUNTING?

Stop hunting are short term engineered trades made by market makers.

Is it for real?

Yes

Who are the hunters?

Anyone with a lot of money and market depth information

What can be done to protect yourself?

1. Hide your stops behind natural support and resistance.
2. Use higher timeframes
3. Stop using what the 95% use (I can venture to say that most of them are using some type of indicator X-over systems thus they are positioned inappropriately)
Quiet! I hear something moving out there. :surprised
Maybe I'm just imagining things.

I appreciate your time!

FXS
.
  • #5
  • Jul 2, 2007 1:19am Jul 2, 2007 1:19am
Some brokers have been known to stop out client positions but not show the market ever being that high or low. I don't think this is the case as this was something that was going on four to five years ago.

Now a days NFA would have those pips right back into your account before you could say "Chaa Ching"
  • #6
  • Jul 2, 2007 1:32am Jul 2, 2007 1:32am
Quoting turbokaos
Some brokers have been known to stop out client positions but not show the market ever being that high or low. I don't think this is the case as this was something that was going on four to five years ago.

Now a days NFA would have those pips right back into your account before you could say "Chaa Ching"
Seems like I see posts pretty regularly claiming that they still do.
Maybe I've misunderstood their whining.

Anyway, I'm not feeling too great about this stop hunting issue!
Thanks for your posts though!
Please keep posting on this topic with as much help as
you can offer us newbie minnows!

FXS
  • #7
  • Jul 2, 2007 3:16am Jul 2, 2007 3:16am
1. Not your stops in particular, but obvious clusters of stops (for example, a whole lot of longs were probably taken out on the USD/CAD at the end of last week)
3. I guess you could try and anticapte pushes into these areas, but it would be pretty risky I imagine, especially from a timing point of view.
4. Depends on the strategy, for most basic signal based systems (like the ones on this forum), yes, it's risky.
The breaking of a wave cannot explain the whole sea.
  • #8
  • Jul 2, 2007 4:13am Jul 2, 2007 4:13am
Quoting FXSurfer
Some Newbie Questions:
What is STOP HUNTING?

Is it for real?

Who are the hunters?

What can be done to protect yourself?
I'm also very interested in this topic. Although I might write my arbitrary and biased view, I hope you find it informative.

1. What is STOP HUNTING?
Aiming for highly-leveraged individual investors. Currently, in Japan, foreign exchange trading is more popular among the masses because people can begin to deal in small wager. Some take "poor man's nuclear weapon" as an analogy.

2. Is it for real?
Sure. This attachment was today's forex thread on 2ch(the largest Japanese Net forum). Some seemed to be caught by stops due to sudden appreciation of the yen from what I could see.

3. Who are the hunters?
Overseas financial institutions' dealers who know places of stop orders.

4. What can be done to protect yourself?
We evolved into low-leveraged individual investors. Currently we always trade on daily or weekly chart and wait for a better opportunity, so we decided not to put stop orders. And our orders are decided to position one-direction online.
Attached Image
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #9
  • Jul 2, 2007 4:47am Jul 2, 2007 4:47am
If your stop loss is big and far away ... they cant really hunt your stops...
It takes money to move the market (or fabrication of data).
That's what I thought.
  • #10
  • Jul 2, 2007 12:28pm Jul 2, 2007 12:28pm
Quoting Fumafuma
3. Who are the hunters?
Overseas financial institutions' dealers who know places of stop orders.
Many Thanks to Fuma and All for your kind replies!

This is a topic that I need to understand much better
than I do now!

Can they actually see where stops are placed and push the market
into them? Wouldn't this be a kind of insider info that would be
unethical to use for your own trading purposes?

Also: Question #5
Why do they do it? I'm kind of a simple-minded person I guess
to not see how it makes them money. So, I have to ask!

Thanks Again!

FXS
  • #11
  • Edited 1:20pm Jul 2, 2007 1:04pm | Edited 1:20pm
Okay, so as to why:

Right now E/U is around 1.3620 and trending moderately lower
on a short TF. A recent S/R area containing a bank of stops
of traders who are currently short could be around, say 630.
The stop hunters start buying and push the market into the
stops, reverse their positions(cashing in on the buying) with
the triggered stops and ride the true trend down as it resumes
itself at a better entry than could have been acheived without
the manipulation. How close am I?


FXS
  • #12
  • Jul 2, 2007 6:19pm Jul 2, 2007 6:19pm
Wow, don't use stops? I am new to FX but I have been told by more experienced traders never to trade without stops. Are there experienced traders out there that don't use stops?
  • #13
  • Jul 3, 2007 5:41am Jul 3, 2007 5:41am
Quoting GJP
Wow, don't use stops? I am new to FX but I have been told by more experienced traders never to trade without stops. Are there experienced traders out there that don't use stops?
Use stops always but place them intelligently.
  • #14
  • Jul 3, 2007 5:54am Jul 3, 2007 5:54am
Quoting luqmanz
Use stops always but place them intelligently.
Thanks for the confirmation luqmanz.
  • #15
  • Jul 3, 2007 11:15am Jul 3, 2007 11:15am
Quoting GJP
Thanks for the confirmation luqmanz.
Here's some advice someone gave me yesterday on my BLUE WAVES
Trading Journal thread. One point mentions stops. Sounds like really great advice.

I messed around with a demo for 2 years before I funded an account.....don't be in to big a rush, the market will be waiting for you when you get there.
Couple of things I learned the hard way were.......

1 when you take a hit, don't try to get revenge on the market, consider it part of the cost of doing bsiness.

2 Don't overtrade, ie scalping......trade the longer time frames, the signals are clearer. when you gain experiance you can start trying the shorter TFs

3. Let the market breath....don't set your stops to tight.

4. simple is better, a strategy does NOT have to be complex

These where the things that gave me the most trouble, I regularly did every one of them

Remember........ trading should be boring.


Have a great day!

FXS
  • #16
  • Last Post: Jul 3, 2007 5:10pm Jul 3, 2007 5:10pm
Quoting FXSurfer
Here's some advice someone gave me yesterday on my BLUE WAVES
Trading Journal thread. One point mentions stops. Sounds like really great advice.

I messed around with a demo for 2 years before I funded an account.....don't be in to big a rush, the market will be waiting for you when you get there.
Couple of things I learned the hard way were.......

1 when you take a hit, don't try to get revenge on the market, consider it part of the cost of doing bsiness.

2 Don't overtrade, ie scalping......trade the longer time frames, the signals are clearer. when you gain experiance you can start trying the shorter TFs

3. Let the market breath....don't set your stops to tight.

4. simple is better, a strategy does NOT have to be complex

These where the things that gave me the most trouble, I regularly did every one of them

Remember........ trading should be boring.


Have a great day!

FXS

Thanks FXSurfer. I resemble some of the above quotes. As for how far away to put stops, I find this is like asking how long is a piece of string.
0 traders viewing now