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idea to avoid stop hunting

  • #1
  • First Post: Dec 2, 2009 2:06am Dec 2, 2009 2:06am
is it possible to write an indicator that will monitor the tick chart (or at least the 1M chart) with a stop loss?

this way the broker cannot see the stop loss because it would only be an indicator running on MT4. the indicator can also implement a trailing stop.

thanks
  • #2
  • Dec 2, 2009 2:22am Dec 2, 2009 2:22am
I have a better idea. Do not use stops at all.

So you believe that the brokers look for our tiny mini positions to hunt the stops? On the minute chart you simply get stopped out due to market noise if your stop is too tight, but that's no stop hunting. Sure, it exists, but on a much bigger scale.

So if your stop gets hit there are two possibilities:
1. You were wrong.
2. Your stop was too tight.

And just avoid bucket shops.
  • #3
  • Dec 2, 2009 3:43am Dec 2, 2009 3:43am
Quote
I have a better idea. Do not use stops at all. http://cdn.forexfactory.com/images/s...im/winking.gif

So you believe that the brokers look for our tiny mini positions to hunt the stops? On the minute chart you simply get stopped out due to market noise if your stop is too tight, but that's no stop hunting. Sure, it exists, but on a much bigger scale. http://cdn.forexfactory.com/images/s...im/winking.gif

So if your stop gets hit there are two possibilities:
1. You were wrong.
2. Your stop was too tight.

And just...

Great Advice....most traders i have seen loose because of SL and after that price reverse in their favour.

Xaron method of trading without any SL works quite good.

I am also making effort to improve my entry and exit points and do not use SL.
  • #4
  • Dec 2, 2009 4:04am Dec 2, 2009 4:04am
Quoting kingfisher
...without any SL works quite good.
- In these uncertain times (Dubai for instance) - Markets can turn on a dime!! - You can have the best entries in the world but a single headline can take you straight to foreclosure city. - Use better technical entries and capital preserving stops. Stops are the only true control you have over any trade.

ALL YOU NEED TO KNOW ABOUT TRADING

 

  1. Price either goes up or down.
  2. No one knows what will happen next.
  3. Keep losses small and let winners run.
  4. POSITION SIZE = RISK / STOP LOSS
  5. The reason you entered has no bearing on the outcome of your trade.
  6. You can control the size of your loss (skill) but you can't control the size of your win (luck).
  7. You need to know when to pick up your chips and cash them in.

  • #5
  • Dec 2, 2009 4:52am Dec 2, 2009 4:52am
Quoting Xaron
I have a better idea. Do not use stops at all.

So you believe that the brokers look for our tiny mini positions to hunt the stops? On the minute chart you simply get stopped out due to market noise if your stop is too tight, but that's no stop hunting. Sure, it exists, but on a much bigger scale.

So if your stop gets hit there are two possibilities:
1. You were wrong.
2. Your stop was too tight.

And just avoid bucket shops.
yeah this debate is going on somewhere else on this forum. what i meant is that you could still use higher time frames and bigger stop margin. the indicator works on the tick or 1M chart to avoid quick market movements against your position.

the advantage is that broker cannot hunt your stop loss because it is not activated on their server. the disadvantage is when you suddenly disconnect from the broker's server due to network problems (or maybe the broker intentionally disconnect you).
  • #6
  • Dec 2, 2009 5:17am Dec 2, 2009 5:17am
Quote
In these uncertain times (Dubai for instance) - Markets can turn on a dime!! - You can have the best entries in the world but a single headline can take you straight to foreclosure city. - Use better technical entries and capital preserving stops. Stops are the only true control you have over any trade.

So Dubai crisis took us down for a day, hit all the stops and then after a day, rally again started and reached new highs.

The main rule of trading is to keep position/lot size small so that you can ride out the temporary fluctuations without getting any margin call.
  • #7
  • Dec 2, 2009 5:50am Dec 2, 2009 5:50am
Quoting Aja
Stops are the only true control you have over any trade.
That's total bullsh... Sorry to say it that hard. The main control is leverage. The stop loss does what it has its name from: It kicks you out of a trade with a loss.

Of course, using decent leverage stops are necessary but to tell it the only true control? Uh...

No offense by the way, please don't take it too serious.
  • #8
  • Dec 2, 2009 6:09am Dec 2, 2009 6:09am
Quote
The stop loss does what it has its name from: It kicks you out of a trade with a loss. http://cdn.forexfactory.com/images/s...m/big_grin.gif

haha..well said
  • #9
  • Dec 2, 2009 6:10am Dec 2, 2009 6:10am
Quoting Xaron
That's total bullsh... Sorry to say it that hard. The main control is leverage. The stop loss does what it has its name from: It kicks you out of a trade with a loss.

Of course, using decent leverage stops are necessary but to tell it the only true control? Uh...

No offense by the way, please don't take it too serious.
I've never been profitable using stop losses ... so i dont use em anymore ... and seriously there is no "magic" system with fix stop loss and limit that will make u a millionaire while just laying back and watching the money pile up
consistency wins
  • #10
  • Dec 2, 2009 6:16am Dec 2, 2009 6:16am
Quoting forexenginee
is it possible to write an indicator that will monitor the tick chart (or at least the 1M chart) with a stop loss?

this way the broker cannot see the stop loss because it would only be an indicator running on MT4. the indicator can also implement a trailing stop.

thanks
There are lots of these kinds of EA's that hide stops from your broker; here's one I use. But if you're that concerned about stop hunting, just go to an ECN broker that offers MT4 rather than one of the bucketshops. That's an option we have today that we didn't have 3 years ago.

http://www.forexfactory.com/showthread.php?t=9553
  • #11
  • Last Post: Aug 29, 2017 7:42pm Aug 29, 2017 7:42pm
Hopefully you are making profit, if not, watch this short video at least 20 times and start trading, feels wierd at first putting orders where your stop losses would have been, but when your pending orders start getting hit and make you a fortune you will get it.
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