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Is stop loss hunting real ?

togr (togr)
Sep 14 2017 at 14:11
4862 posts
ChannelTrader posted:
Hi,

It's not that the broker is hunting your SL but more of bigger institutions so called smart money. They have power to move price up or down to hit your SL so they can get your orders and move market back into the direction that it was previously going.
Please watch this video to see the real time example:

Good luck.


Well yes big player move market up and down hitting your stop loss
but they dont care about your stop loss
they follow their own goals

Real stop loss hunting is your mm broker that could have some profit from it.

leo23
Sep 14 2017 at 14:11
566 posts
Yes, stoploss hunting is very much real. Especially if you are using small stoploss values between 5 to 20 pips, then you are giving the broker enough opportunity to wipe out the whole balance very slowly and steadily irrespective of whatever system or EA you are using and it is very difficult to notice that as well.

It may not happen always, but most brokers once in a while will hit the stoploss of one trade even if the price doesn't reach that level. It happens many times in most brokers because most traders don't analyse the each and every trade and simply carry on changing systems. If someone figures out such an event of stoploss hunting and contacts the brokers, then some brokers refund the money and some don't.

Especially, Scalping trading systems using tight trailing stop give enough room for almost every broker for stoploss hunting. That's why many brokers encourage scalping EAs and trading systems.

Artificial General Intelligence
BaldoN (BaldoN)
Sep 19 2017 at 11:39
522 posts
In theory, the market noise (to be read as big guys :)) will tend to trigger s/l close to the market price, BUT many experience scalpers are using exactly so tight stops when market allows and they enters on the market for similar targets.

TheSlyFox (TheSlyFox)
Nov 20 2017 at 07:40
31 posts
No stop loss hunting is not real, in the years past yes, but not since 2009. Besides, you could combine the entire funds available from the 2 biggest market movers, and only be able to move the market a few pips. The real thing to watch for are the big banks as they have set targets, and understand trader psychology, a few good things to learn are Fibonacci expansion as well as understanding fundamental trading and Elliot wave theory. Stop loss hunting is a myth in the market and something many traders use as an excuse for being unprofitable it hasn't been something that is used since the old days, if brokers are proven to stop loss hunt, or enter counter positions often, it would be big news everyone knew about, and they would be shut down, just like what happened to FXCM

Slow and Grow or Fast and Blow
BaldoN (BaldoN)
Nov 21 2017 at 15:14
522 posts
Stop loss hunting with market makers still works - I believe in that. It is not that the brokers is making spikes on the chart, but in some moments it is enough to increase the spread or move the bid or ask price manually within few points - not much just to stop your order. In most of the cases if the market is moving in that direction stop will be triggered and only in few cases the movement will reverse. But in that moments exactly the brokers mentality is that they are feeling in oblige to try stop you out of the market and to realize profit. This is valid for large orders or similar with accumulate nice negative number with stop near to the market price :)

jimenooo (jimenooo)
Nov 21 2017 at 15:52
4 posts
thanks Baldo for the good explanation. stop hunting really exists and it seems many brokers are tempted to use it.

mlawson71
Nov 21 2017 at 17:20
1487 posts
I have no doubt that there are some (probably a lot of) shady brokers out there who do this. Why wouldn't they, considering all the other ways in which they scam and rip off their clients.

Jimmblack (Jimmblack)
Nov 22 2017 at 15:37
23 posts
I'm new here. I have some experience in trading, but only on a demo account. Do not judge me about my questions or statements, we all came here with a purpose.
After reading the whole discussion, I can agree with Baldo. It seems to me that by making small manipulations with spread they can hit your SL.
And I have a question. Does it make sense then to put a stop loss at all?

TheSlyFox (TheSlyFox)
Nov 24 2017 at 11:32
31 posts
Yes a stop loss is important and their ARE shady brokers, but in terms of regulated brokers they aren't able to artificially inflate spread etc. they are required by law to tell clients if they trade against you, as well as have to give consistent spreads. They also don't have enough capital to trade against you and for people like OANDA, it would be counterproductive. They make most of their money from commissions, and make MORE if you are profitable then if you are a loser, and take better care of you. Stop loss hunting isn't real among regulated brokers, as it would cost them more money then it makes them.

Slow and Grow or Fast and Blow
gopikrishnans (gopikrishnans)
Dec 22 2017 at 11:19
4 posts
I have notices as soon as place an order say a buy in a clear uptrend,from the very next candle the price go opposite and goes into a loss and the loss widens. True for a BUY as well as SELL.Immediately if I place another order say my BUY has reversed I put a SELL even 0.01 the trend stops.then starts channeling in between. I do not put any STOP Loss as I feared SL hunting. Any one can throw some light . There are many traders here in Gulf who are signed with one particular broker for months together and has not made any money. Broker is Cyprus regulated.
How do we know realistic price what is the current price of the pair other than broker's charts?

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