How easy is it for a broker to stop hunt

This is a discussion on How easy is it for a broker to stop hunt within the General Trading Chat forums, part of the Reception category; surely if any broker is proven of this ,we are emtitled to all our loses back as they have broke ...

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Old Dec 15, 2011, 7:18pm   #31
 
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Re: How easy is it for a broker to stop hunt

surely if any broker is proven of this ,we are emtitled to all our loses back as they have broke t and cs. Id love CMC to be found quilty, much of my early funds paid for steal4frees xmas party
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Old Dec 15, 2011, 7:30pm   #32
Joined Oct 2006
Re: How easy is it for a broker to stop hunt

Quote:
Originally Posted by dazzer_fx View Post
I use Tradestation Securites and IG index, which are like chalk and cheese, in
the last 12 months and plenty of screen time I haven't seen anything that I
would call untoward. I had a problem with FXCM (bad tick) and it was sorted
within hours http://www.trade2win.com/boards/fore...ml#post1426442. As I said I'd like to see some examples.
Read the Gain Capital and FXCM judgements from NFA and CFTC.
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Old Dec 15, 2011, 8:00pm   #33
Joined Sep 2008
Re: How easy is it for a broker to stop hunt

Although stop hunting is certainly despicable of any broker or bank to do that and several brokers have been caught, I think you guys are blowing it out of proportion a bit. Let's put some perspective here. The video is for example only and shows and individual trade being manipulated. Brokers and banks do NOT hunt individual trades or traders unless you are trading mega size. Stop hunting your $1/pip trade isn't worth their time of day. Instead they DO hunt clusters of stops where the monetary value is very significant. If you place your stop where everyone else is placing it or where the broker's tell you to place your stop (read that again) then you WILL get stopped out more often than should be expected. Before anyone jumps on me I'm not defending any brokers. I agree many of them are shady at best. But if you want to play the game you have to know and understand how it works so you can plan your strategy accordingly.

Peter

Last edited by wackypete2; Dec 15, 2011 at 8:17pm. Reason: edited for clarification
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Old Dec 15, 2011, 8:03pm   #34
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Re: How easy is it for a broker to stop hunt

More background from this guy here

Videos about MetaTrader Manager and Administrator settings and plugins @ Forex Factory
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Old Dec 15, 2011, 8:08pm   #35
Joined Sep 2008
Re: How easy is it for a broker to stop hunt

On a related note, most of the stop hunting for clusters comes from the banks and liquidity providers who know where the money is sitting since they can see more than retail trades or even the brokers can. Of course the price(s) they quite are reflected via your broker who then looks like the bad guy. However the Virtual Dealer plugin is almost exclusively broker operated and not used by banks.

When you see false breakouts, especially at the open of the Asian session, that's the banks looking to wash out traders with weak positions. They know where the money is at and they have the means to get it.

Peter
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Old Dec 15, 2011, 8:10pm   #36
Joined Oct 2006
Re: How easy is it for a broker to stop hunt

Quote:
Originally Posted by wackypete2 View Post
Although this is certainly despicable of them to do that and several brokers have been caught, I think you guys are blowing it out of proportion a bit. Let's put some perspective here. The video is for example only and shows and individual trade being manipulated. Brokers and banks do NOT hunt individual trades or traders unless you are trading mega size. Stop hunting your $1/pip trade isn't worth their time of day. Instead they DO hunt clusters of stops where the monetary value is very significant. If you place your stop where everyone else is placing it or where the broker's tell you to place your stop (read that again) then you WILL get stopped out more often than should be expected. Before anyone jumps on me I'm not defending any brokers. I agree many of them are shady at best. But if you want to play the game you have to know and understand how it works so you can plan your strategy accordingly.

Peter
It would be interesting to see a breakdown of Gain Capital or FXCMs trades where they were applying asymmetrical slippage. I doubt they were only targeting massive trades, surely with an automated system you can take a bit from everyone.

When I read about people being refunded after the NFA judgement the impression I got was that plenty of small traders were affected.
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Old Dec 15, 2011, 8:14pm   #37
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Re: How easy is it for a broker to stop hunt

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Originally Posted by pboyles View Post
It would be interesting to see a breakdown of Gain Capital or FXCMs trades where they were applying asymmetrical slippage. I doubt they were only targeting massive trades, surely with an automated system you can take a bit from everyone.

When I read about people being refunded after the NFA judgement the impression I got was that plenty of small traders were affected.
No argument with you on that, but slippage and stop hunting are different beasts. My post deals mainly with stop hunting.

I edited my original post in case I wasn't clear on that.

Peter
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Old Dec 15, 2011, 8:19pm   #38
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Re: How easy is it for a broker to stop hunt

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Originally Posted by wackypete2 View Post
No argument with you on that, but slippage and stop hunting are different beasts. My post deals mainly with stop hunting.

Peter
Yes I was just about to clarify that myself. Clearly designer slippage can be built in with very little effort. Stop hunting whilst technically feasible (as the video shows) presumably could only be applied on an individual basis, though clearly the functionality exists in the software so someone must be using it.
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Old Dec 15, 2011, 8:37pm   #39
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Re: How easy is it for a broker to stop hunt

Here's the manual for the virtual dealer plugin, you can see the settings for maximum positive and negative slippage etc.
Attached Files
File Type: pdf metatrader virtual dealer plugin.pdf (208.4 KB, 229 views)
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Old Dec 15, 2011, 8:38pm   #40
 
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Re: How easy is it for a broker to stop hunt

Quote:
Originally Posted by wackypete2 View Post
On a related note, most of the stop hunting for clusters comes from the banks and liquidity providers who know where the money is sitting since they can see more than retail trades or even the brokers can. Of course the price(s) they quite are reflected via your broker who then looks like the bad guy. However the Virtual Dealer plugin is almost exclusively broker operated and not used by banks.

When you see false breakouts, especially at the open of the Asian session, that's the banks looking to wash out traders with weak positions. They know where the money is at and they have the means to get it.

Peter
Pete. I like what you write, and would like to subscribe to your newsletter. Where can I sign up?
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