Is stop loss hunting avoidance worth it?

[Oscar Reed]

How to trade them ? = How long is a string .

You dont trade a stop loss its just another tool in your MM arsenal , most of the time i dont use them , but i take losses on nearly half of my trades .

most of the time i dont use them

When you do use stop losses are you over leveraging your account or not confident about the trade.

Tar is in the house.

 

[tar]

most of the time i dont use them

When you do use stop losses are you over leveraging your account or not confident about the trade.

Tar is in the house.

No , when i am scalping i use them if the platform has a default sl - like ctrader for example - .

But if i am swinging i dont really have to place a sl order unless i am leaving my laptop for long time , usually i close the trade and take a loss manually , call it a mental sl or manual sl or whatever .

 

[Oscar Reed]

No , when i am scalping i use them if the platform has a default sl - like ctrader for example - .

But if i am swinging i dont really have to place a sl order unless i am leaving my laptop for long time , usually i close the trade and take a loss manually , call it a mental sl or manual sl or whatever .

Thanks for sharing.

Would you ever use a hedge for a stop loss.

Different month, market, JPY etc

 

[tar]

Thanks for sharing.

Would you ever use a hedge for a stop loss.

Different month, market, JPY etc

Yes , but i found it paralyses me and clouds my judgement .

Technically when one hedges with another market then he/she is trading the spread between both , so one should check the spread chart .

Spreading is a niche in itself . It works nicely when one enters the spread from the get go , not just for the sake of hedging .

 

[Oscar Reed]

Yes , but i found it paralyses me and clouds my judgement .

Technically when one hedges with another market then he/she is trading the spread between both , so one should check the spread chart .

Spreading is a niche in itself . It works nicely when one enters the spread from the get go , not just for the sake of hedging .

I will hedge to hedge and you can get caught in the reason for the first hedge.

Needs a bit of focus and reason.

Last question from me.

The longer the period/time why would you care about the spread or bid/ask

 

[tar]

The longer the period/time why would you care about the spread or bid/ask

I didnt understand sorry .

 

[Oscar Reed]

I didnt understand sorry .

For example if you trading a soft or hard commodity.

The longer it runs, time or season the spread would be irrelevant.

Holding cost maybe not.

 

[tar]

For example if you trading a soft or hard commodity.

The longer it runs, time or season the spread would be irrelevant.

Holding cost maybe not.

Yes true , so i dont care about the bidask spread if i am not scalping .

 

[kalott]

http://www.leaprate.com/2016/12/the-chemical-effects-of-trading/

 

[TraderNorm]

SO AS NOT TO MISLEAD,

I'm the guy who started this thread, and I need to make a correction lest I mislead some. Increasing the stop does NOT reduce pip value. Pip value = pip decimal X units/exchange rate. Stop size in not in the formula.

Also, thanks to all of you for your comments on stop hunting and trade management. I think they've brought me into a better balance. I may respond to some of you individually, but for now, thanks.

Norm

 

[TraderNorm]

"The market doesn't differentiate between stops and TP orders."

Interesting point!

Thanks

 

[TraderNorm]

Putting it in a strategy simply brings more confusion because you start to consider one more unnecessary factor.

Great point.

Thanks

 

[TraderNorm]

You can follow our trading journal thread that we just created. Perhaps you can learn by example.
http://www.trade2win.com/boards/tra...rice-action-trading-institutional-levels.html
There won't be much out there it isn't necessarily a trading "method" it is just a mindset and beyond that it is the specific key levels. We have access to certain institutional research, but we don't feel that is necessary to be successful. As long as you can think like an institution you can greatly improve your trading.

Thanks. I'll follow up on it.

Norm

 

[TraderNorm]

So, what you are saying is, If these pools of stops were not there then the market would not reach these levels correct ?

No, but it's much more likely when huge institutions trade or hunt stops because their huge volume can move a market up or down very rapidly.

Norm

 

[darktone]

"The market doesn't differentiate between stops and TP orders."

Interesting point!

Thanks

Think about it as though youre selling a car. You have it advertised for 5000 and the guy arrives and says hes happy to pay 5000 for the car.

What do you do now?

i) tell them whatever and aim for a higher price
ii) deal at 5000
iii) tell them youll only sell it at 4500 or less

 

[TraderNorm]

Quite simply, you should place your stop at that point or level which, if reached, will tell you that the assessment you made before entering the trade in the first place, including the location of your stop, was wrong.

Seems like the best advice, after all db.

Thanks,
Norm

 

[darktone]

Or another way of looking at things

 

[jiggly]

Hi,

I've read some articles that say that one of the ways to avoid having your stops taken out by stop hunters is to widen your stops, thereby keeping them away from where hunters would expect the large pool of stop losses to be. For example, on a reversal trade, since hunters expect the pool of stops to be within, say, 10 pips of support or resistance, set your stop 15 pips away.

The issue: On the one hand, by widening your stop, it might be missed by the hunters more often than otherwise and you'll stay in more trades instead of losing your stop loss cash value each time. On the other, each time you widen your stop you're reducing your pip value; so if you win the trade, you'll end up with less profit.

Question: Which would be better in the long run, to place stops in the expected place and get stopped out by hunters more often while earning more on the trades you win, or to widen your stops, thereby keeping you in more trades, but earning less on each of those trades?

Thank you,
Norm

Which would be better in the long run?

Become the hunter, not the hunted. :idea:

So if you know where to expect large pools of stop losses, that is where your Take Profit should be, not your stop loss. Because you can bet your last dollar that the market wants to move there to find liquidity to match orders.

Your stop loss should not be anywhere near these pools. It should be on the opposite side of the field.

This is just my opinion.

Good luck.

 

[TraderNorm]

So if you know where to expect large pools of stop losses, that is where your Take Profit should be, not your stop loss.

Thanks. Definitely worth thinking about.

Norm

 

[darktone]

Think about it as though youre selling a car. You have it advertised for 5000 and the guy arrives and says hes happy to pay 5000 for the car.

What do you do now?

i) tell them whatever and aim for a higher price
ii) deal at 5000
iii) tell them youll only sell it at 4500 or less

The correct answer Norm (if youre a trader) is iii