You are making complete sense, but trying to reason logically regarding the troll EMG is a waste of effort.
Ummm.... the simple fact of the matter is that small traders who manually point-and-click using a mouse cursor and order ticket DOM windows with the strategy for capturing single tic increments out of the market are going to lose to HFTs whether they use stops or not. Stops really don't have much to do with that scenario IMHO. Speed kills the manual single tic scalper. No news here - you are just trolling up drama once again with a tired cliche.
I agree, if we're talking stops that are too tight..... One of the best mean reverting algos I've tried had a profit target 1/10 the size of the stop and just faded the BB.... Even better if the tiny target becomes a tight trailing stop after a very small positive excursion. Flipping all this around to represent the small trader who has a tiny stop for "protection"...... would be the source of all the profits captured by the aglo described above :eek:
(quote truncated) I am still waiting for retail DOM windows that have a blinking buzzer and sound effects purposely orchestrated in the key of C.
No doubt in my mind HFTs are stiill stopping out small traders in the es. This is what u get for placing stops http://www.chicagotribune.com/busin...-data-leak-20130424,0,4124230.story?track=rss Price action and TA methods are encouraging small traders to place stops and trade as little as $5000. In other word, they brain draining small traders, while the HFTs, higher educated traders easily profiting over small traders expense. "Chickens (small traders) are coming home to roost" Minimum to trade in the es $500,000. 1 contract equal $100,000