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Is stop loss hunting real ?

tonyget
Apr 26 2017 at 06:55
2 inlägg
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
Apr 26 2017 at 08:53
9 inlägg
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 ;).

Baldo (BaldoN)
Apr 26 2017 at 10:15
522 inlägg
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
Apr 26 2017 at 13:54
2 inlägg
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
Apr 27 2017 at 12:17
10 inlägg
I think it exists but is should not be a major factor in setting your SL. I won't affect your profits massively

Baldo (BaldoN)
Apr 27 2017 at 13:29
522 inlägg
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.

vontogr (togr)
Apr 28 2017 at 06:20
4862 inlägg
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

Imamul
Aug 17 2017 at 06:34
649 inlägg
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.

vontogr (togr)
Aug 17 2017 at 06:51
4862 inlägg
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?

leo23
Aug 17 2017 at 12:43
567 inlägg
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.

Artificial General Intelligence
Gabor33
Aug 18 2017 at 10:34
49 inlägg
Stop loss hunting is real, but it`s not done by your broker. (as long as you use a fully regulated one)
It`s done by big firms and banks, etc.. that are trading the amount of money I can`t even imagine. For example, if a rally is kinda obvious and everyone is getting in buying, they can`t really do the same thing bcoz they`d get a huge slippage and not a lot of profit, instead what they do is, they have the ability (and amount of money) to drive the price lower into obvious support levels and previous lows where most ppl are placing they stop losses (aka sell orders), so they can absorb all that and fill their buy orders with a better price. Or something like that.
For me a scenario like this is much more believable then brokers actually monitoring my SL levels and trying to stop me out from my smallass 2 minilots trade. Regulated brokers cannot do such things anyway bcoz they are closely monitored and it would count as fraudulent activity.

Imamul
Aug 18 2017 at 10:35
649 inlägg
Can you share more about Hidden SL and TP.

DAXESH (coralforex)
Aug 18 2017 at 10:41
6 inlägg
vontogr (togr)
Aug 18 2017 at 10:43
4862 inlägg
tonyget posted:
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 ?


OK.
SO there are accounts with fixed spread and variable spreads.
Variable spreads are lower but you pay commission. They of course fluctuate a lot. Check how the spreads are changing in mt4.
Fixed spreads should have been fixed. They are not, they fluctuate as well.

leo23
Aug 20 2017 at 06:27
567 inlägg
Imamul posted:
Can you share more about Hidden SL and TP.

It is very simple. You just need to add one additional line code for closing the trades so that a BUY order will be closed if the Bid price will go below hidden stoploss value in terms of points from the order open price.

Same way a SELL order will be closed if the Ask Price will go above hidden stoploss value in terms of points from the order open price.

Same way TP can be set for trade close.

So instead of directly applying the SL and TP, the EA will close the trades when the hidden SL or TP is reached.


Artificial General Intelligence
vontogr (togr)
Aug 21 2017 at 07:59
4862 inlägg
Imamul posted:
Can you share more about Hidden SL and TP.


you just run the ea,

ea has SL and TP that are not visible to broker

instead it closes trades when SL or TP are reached

Zeus888
Aug 21 2017 at 10:54
15 inlägg
SL hunting can be done by the big banks but they don't care about where any individual retail traders stop loss is, so I wouldn't worry about it

Slim101
Aug 22 2017 at 06:14
9 inlägg
OK consider this you paranoid nuts! Do you really believe that your little stop loss means anything to the banks or brokers. You must think you are really something. LOL Get over it, no one cares what you are doing blame your losses on the real person that is at fault YOU!

vontogr (togr)
Aug 22 2017 at 06:15
4862 inlägg
Zeus888 posted:
SL hunting can be done by the big banks but they don't care about where any individual retail traders stop loss is, so I wouldn't worry about it


market maker broker will be profitable when you loss
real ECN broker has no such interest

TopMasterTrader
forex_trader_[264513]
Sep 14 2017 at 06:44
6 inlägg
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.

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