Seriously though, the Russell can be a real bitch to trade. Add a handful of ticks to wherever you think your stop should be.
Maybe im missing something but why would a broker even bother to take out their clients stops?? Seems counter productive since they rely on clients commissions to make a profit. Wouldn't they want to have a client to make a profit? it would meet more commissions down the road for them
It's not the broker, its traders like me that are lucky to get filled against you for a couple contracts while we establish a position. I look for and expect the rookie print. Before placing a trade like that I just think, what is the worst case scenario? Then give it an atr or so on the time frame in question plus a few ticks more for good measure. Obvious high/low? Even better. It's the spot where you would absolutely be sure to be wrong... That's the spot and it's hard to wait for it. The rookie print is the proof that no one gives a shit about the direction, no one else wants to buy/sell at that level. Everyone already sold higher or bought lower. Brokers, big traders and locals don't fuck around pushing the market for one lots. they hunt for big stops to unload into or buy from by adding to their positions until they get to a stop that is large enough to give them a nice exit. No one is going to keep buying only to be able to unload against a small stop order. But you don't need to hunt stops to profit from them. On the Russell I will wait for it to hit then fail - there is even usually a little wiggle to get in an a nice price after the action is confirmed - the other "mental" stops that saw yours go off are baiing too - that's right, at the brief moment you thought you were lucky /relieved to get stopped out I'm hoping to get filled on as much as I can before it reverses. On ES you have to offer/bid well ahead of time or you don't fill unless you're wrong. I used to be that high/low tick that was "safely" above or below where it "should" go when I first started. Every once in a while when I fight a trend I am reminded of this concept as my stop is the high/low print. Moral is: Don't place stops like that. get flat or reverse as soon as you see opportunity or participation in the other direction and then fade what would have been your stop.