Who sees your stops

I have always accepted the idea that on an an exchange, stops are not seen by anybody, FX is different of course. But I noticed over the years especially those past two years, that in any market , any stop serving the purpose of limiting my losses is likely to be triggered.

And despite using one of the better FX brokers, if I place a stop, it's virtually guaranteed it will be triggered, even if it's 100 pips away. I also allow for a 20-30 pip margin past the key level that I think proves me wrong. Still it will most of the time be triggered by a spike . I have used stops only overnight, but now I no longer use them because it's guaranteed I have a loss in the morning. Placing a stop is akin to asking for a loss.

I am starting to believe in conspiracy theories.

 

If your stops keep getting hit then it means that you do not know how to read charts enough to get in good trades

Especially if your 100pip stop loss limits are getting hit

 

Not really. I trade since 2000 as you can see, and I am profitable.And I do not know the fundamentals or the news.

 

Ask your broker if, when you place a stop – they post it on their server, or send it out

If they send it out – everybody sees it


I have a direct access platform with level II, and I see stops posted all the time, I also see them getting hit all the time – after they get built up – it’s easy money


Disclaimer – I do not trade FX – but it happens in stocks every day..


RN

 

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I couldn't agree more.

What time frame(s) are you concentrating on? The farthest i ever put a stop away from entry on 30min chart on eur/usd and gbp/usd is 20-30 pips and i only have my stops triggered approx 10-20% of the time.

Gcapman is right, you're chart reading skills are in serious need of retraining

 

Stop the nonsense about me and charts. Just because you are a freaking daytrader with one minute charts on your screen doesn't mean everybody is like you.

Redneck : How do you see stops on Level II, level II AFAIK does not allow you to see that info. I believe the specialist can see some stops, but I don't understand what you mean. Also if stops are sent to the exchange, futures exchange for instance , it's my understanding noone among the market makers has (should have ) that information .
But the phenomenon I describe is definitely more prevalent in FX where stops are just depleting your account. Part of it is certainly the heightened volatility these past couple years but I swear very often there is just one spike that will take out the stop. And it's not at the broker level, the market just goes through it, my guess is it's also the liquidity providers that must have some kind of info .

 

Well…. One scenario (there are a couple)

Orders start stacking up above /below the inside bid or ask

Some of those orders correspond nicely to where logical (the less experienced money’s) stops would be placed – as seen on a chart

All the sudden you see a wick on a candle appear – sometime it a real nice long wick to get em all :eek:

Then Price continues on its merry way



RN

 

I agree with him... Your entries might be a little to late.. You should check it out..

 

OP,

Take a look at LVS on Jan15th

Pull up a 5 or 15 minute chart and look at 11:45 candle

RN

 

If your 100 pip stops are "virtually guaranteed" to be hit, then you have found a gold mine. Just place a buy limit order at the price where your sell stop would have been, and you will be raking in the profits and can wake up to a gain in the morning.