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Is stop loss hunting real ?
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tonyget

Member Since Dec 02, 2016  2 posts tonyget Apr 26 2017 at 06:55
Hi new babe here !

I have been seeing all these articles say that 'brokers can see your SL level then sudden widen spread to hit your SL'.

I thought spread is always the same for on same broker(same type of account). Since all traders have different SL level, if SL hunting is real does that mean broker's server give different spread for individual traders ?

VincentD

Member Since Jan 23, 2015  9 posts VincentD Apr 26 2017 at 08:53
I don't know about the widening of spread to hit SL.

But I have heard of brokers opening counter positions to drive up market price so SL of client's would be hit, which strengthens their position.

Also some break out traders hunt for the stop loss of traders who use a range to but the high and lows.

So stop loss hunting is real and ok, as long as traders are doing it and not the broker ;).

BaldoN

Member Since Feb 12, 2016  522 posts Baldo (BaldoN) Apr 26 2017 at 10:15
Hello,
Stop loss hunting is a kind of tactic applicable from market makers brokers, because they are the opposite side of your trades. They are doing this, because your profit is their loss and in opposite. In some particular moments, they may wide the spread (bid or ask or both), when orders with solid loss are near the market price in order to trigger them and to take the traders money.

They count also on this, that if you take 10 brokers, they might show on the same FX pair different prices due to different data feed suppliers, or trading spots from where they are getting feed and executions, but the difference are not too big. I mean they could move the price or wide the spread 1 or 2 pips if the price is close enough, but also not to attract your attention :).

Technically placed S/L and T/P are visible from all brokers in the MT4 Manager terminals and the dealers on dealing desks can see all of them, including pending orders.

Of course, there are a way (by using an EA to show unreal levels to your broker or to hide the S/L and T/P levels).

tonyget

Member Since Dec 02, 2016  2 posts tonyget Apr 26 2017 at 13:54
BaldoN posted:
Of course, there are a way (by using an EA to show unreal levels to your broker or to hide the S/L and T/P levels).


I tried these kind of SL hide EA. The mechanism is EA monitors price change, when price reaches preset level programming will close order using market execution .

There is drawback: Because of EA response time/nternet lagging/slippage issues, the actual closing price could be worse than SL, especially when price moves sharply in a matter of seconds.

MicTic

Member Since Feb 04, 2017  10 posts MicTic Apr 27 2017 at 12:17
I think it exists but is should not be a major factor in setting your SL. I won't affect your profits massively

BaldoN

Member Since Feb 12, 2016  522 posts Baldo (BaldoN) Apr 27 2017 at 13:29
tonyget posted:
BaldoN posted:
Of course, there are a way (by using an EA to show unreal levels to your broker or to hide the S/L and T/P levels).


I tried these kind of SL hide EA. The mechanism is EA monitors price change, when price reaches preset level programming will close order using market execution .

There is drawback: Because of EA response time/nternet lagging/slippage issues, the actual closing price could be worse than SL, especially when price moves sharply in a matter of seconds.


It is possible or even I would say it is something usual to have different price then requested or so called slippage or price adjustment, which could be negative in most cases, but is it possible to be positive as well.
Nevertheless if your idea is to hide the S/L and/or T/P levels from your broker, this should not be an issue.

togr

Member Since Feb 22, 2011  3966 posts vontogr (togr) Apr 28 2017 at 06:20
BaldoN posted:
tonyget posted:
BaldoN posted:
Of course, there are a way (by using an EA to show unreal levels to your broker or to hide the S/L and T/P levels).


I tried these kind of SL hide EA. The mechanism is EA monitors price change, when price reaches preset level programming will close order using market execution .

There is drawback: Because of EA response time/nternet lagging/slippage issues, the actual closing price could be worse than SL, especially when price moves sharply in a matter of seconds.


It is possible or even I would say it is something usual to have different price then requested or so called slippage or price adjustment, which could be negative in most cases, but is it possible to be positive as well.
Nevertheless if your idea is to hide the S/L and/or T/P levels from your broker, this should not be an issue.


The slippage is there also for LS already placed on server
Moreover slippage could be also in your favor so
using EA to hide true SL/TP is a good thing
the problem could be server or internet outage

I like what I trade, I trade what I like
Imamul

Member Since Aug 09, 2017  80 posts Imamul Aug 17 2017 at 06:34
Without Stop Loss in Forex is like a condition a ship in a large ocean devoid of a rudder. So there is no way to ignore the importance of SL at all.

togr

Member Since Feb 22, 2011  3966 posts vontogr (togr) Aug 17 2017 at 06:51
Imamul posted:
Without Stop Loss in Forex is like a condition a ship in a large ocean devoid of a rudder. So there is no way to ignore the importance of SL at all.


SL is a must
But you can have hidden SL you know?

I like what I trade, I trade what I like
leo23

Member Since Oct 12, 2016  377 posts leo23 Aug 17 2017 at 12:43
All the stop hunting business comes into picture when you are trying to scalp with tight stoploss with few pips, otherwise, if you are using a day trading strategy with a stoploss of around 50 pips or more, then there will not be any such situation at all with almost any regulated broker.

Of course, you can use hidden stoploss and hidden takeprofit as well. These hidden SL and TP generally benefits while scalping reverse trend and hence, gives positive slippage.

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