Strategy to discourage Stop Loss Hunting
daraknor,
Not a bad idea. Could discourage stop hunting. I like the way you think. 
why not just hide your TP and SL !!
why not just hide your TP and SL !!
That sounds good, but how to do it with an EA that wont get multiple entries confused.
That sounds good, but how to do it with an EA that wont get multiple entries confused.
the same idea apply , but instead of closing at x amount of pips on each trade , close at total amount of pips.
for example if you have Num= the number of open trades, then I would use the following lines to close the total open trades at "TakeProfit" where "TakeProfit" is the total profit required on all the open trades in pips
I am using this code :
if((ScanOpenTrades(MagicNumber)>=Num)&& (ProfitOnOrdersInPips(MagicNumber)>=TakeProfit))CloseAll(MagicNumber);
if (ProfitOnOrdersInPips(MagicNumber)<-StopLoss) CloseAll(MagicNumber);
I do hide my TP and SL but that doesn't prevent the practice. Besides, if the price is listed at my SL, my code *should* take it. There is a counter strategy and that is to take the second tick for SL because they only inject single ticks for SL hunting. This practice prevents them from hitting your trades, but it doesn't penalize them for hunting others. Nor does hiding your SL allow you to profit from their hunting!
Besides, altruistic profits are twice as good right?
You can sort trades with magic numbers. I have 4 EA running on one account and none of the trades get confused. The elite section testing has *dozens* of EA running on the same account and then the trades are sorted later.
The code is trivial but I'm completely bogged down. This is a perfect exercise for new programmers and I'll add some advanced code for news avoidance and stuff. Still debugging an array issue but I'm not sure if the problem is the data or the code, which means writing a separate script just to check why it fails when int array[key] == int is checked. I mean... they are both int and the values are either 1, 2 or 3!! *grr*.
This is a piece of code that would really well if *everyone* ran it on Alpari 
Compare Alpari Demo vs Alpari real. Divergences in price = stop hunting. You could do the same with north finance, FXLQ, etc. there are dozens of brokers that stop hunt.
THE MAIN FEATURE of MT4 server is quick stop hunting to keep the overall trade balance the same and gather extra profits. If the broker has 100 lot buy and 100 lot sell, they don't need to be in the market at all. The broker likes this.
Compare Alpari Demo vs Alpari real. Divergences in price = stop hunting. You could do the same with north finance, FXLQ, etc. there are dozens of brokers that stop hunt. THE MAIN FEATURE of MT4 server is quick stop hunting to keep the overall trade balance the same and gather extra profits. If the broker has 100 lot buy and 100 lot sell, they don't need to be in the market at all. The broker likes this.
I went live and compare to demo its a total diff world! I can't explain exacly why, still a mystery for me, but after more then 5 month of profitable i went live and been spank hard. FXPro was the broker.
My 2 cents.
Adjusting the prices is only one of the major differences of live vs demo. On demo, all of your orders are done at exactly the price you specify. Live, you often have slip and requotes. I was trading on an ECN with market orders and I had slip on about 14/15 trades, sample size about 100 trades. Sometimes it was for, sometimes it was against me. Overall it was about a 17% loss, and my balance would have been about 20% higher. A broker is more likely to give you negative slip and keep the positive slip.
I am doing 11 pip trades. There was 1 missed fill on a news spike (expected) but every trade shows 11 pip in profit. 76 trades no slippage on FXDD. Net yield of about 800 pips in 50 hours of run time. 1 missed fill during news, no bad fills. If you do open an account there, please use "PhoenixFund" as the IB name and send me a message so I know to look for it.
There are also "fictions" you can do on demo and in backtest, like trade the price spikes. This is a strategy to trade the price spikes. I'm guessing since nobody submitted an EA that they are doing it and just keeping it to themselves. I have *two* projects I'm supposed to work 100 hours a week on each right now, I'm simply too busy.
I like the idea..but how will we counter the stop hunting from Banks itself..people don't believe it but even the banks where all trades get routed do stop hunting...
I have being enough on the bad side to see price move as soon as you start trading big.
I have seen it go from two years now and no body believed it a couple of years back...now slowly there is some talk in forums on how the banks move prices to stop hunt.
The best place to test is commodity exchanges..trade gold big and you will know, how the prices goes to you..just to get your stop loss.
This strategy would still make money for bank SL hunting.
Yes, banks have dealer desks, requotes, slippage, missed trades, etc. Going to a big bank is similar but not necessarily better.
I'm working with a Trading Group to connect to ECN. I don't know how long until my code is done, or how long until they accept retail customers.
Sometimes the *market* also spikes, so I don't think there is a problem - especially since any filled spike would be profitable. ECN also have price spikes when all of the orders on one side get filled. If there are no pending BUY orders, the BUY price will spike up a few pips.
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I had a neat idea come to me and I thought I should share it because it becomes *more effective* as more people do it.
In MT4 Dealer Desk, the software tells the Dealers how much money they will make and how it affects the overall goal of being market neutral by injecting prices into the price stream. Move the price by 7 pips, close 30 lots at a loss, and pocket at least 30 lots * 7 pips. Compelling reason for brokers to SL hunt.
We can provide good motivation for the brokers to not SL hunt by putting pending trades above and below current price that move with the price. Every tick or three we could have an EA move the pending trade to 5-10 pips (MODE_STOPLEVEL is minimum) away from the current price. The pending trade should never get filled outside of crazy news events... but if it does get filled then it should quickly fill with 2-5 pips TP.
If the broker in the example above *did* earn 30 lots * 7 pips, you might charge them 2 lot * 4 pips and get some money back from the brokers SL Hunting. The brokers might still do things about this, but it would be difficult and not a single button click the way it is now. (The broker could reverse your trade, you can call customer service, etc.)
This may also earn money from news, but it is likely that the price would spike up and keep going, and these trades should be LIMIT orders designed for the price to return to the current price. I can put in a news filter if someone else makes the basic EA. (I have 320 hours of TCP/IP, Python and MySQL programming work left to do so I'm a bit busy... )