Hunting
Watching the price in the market gives the impression that there is a constant hunt for stops...
How to make money here ?????
There is a thread on the Alpari forum about stop hunting.
There is a thread on the alpari forum about stop hunting.
https://www.mql5.com/ru/forum/41229
There's one here too.
If you apply a virtual stop, it is not visible to an unscrupulous broker.
- www.mql5.com
Watching the price in the market gives the impression that there is a constant hunt for stops...
How to make money here ?????
To answer this question, we first need to understand where profits can come from in a closed system (let's say a stock exchange for simplicity)
the system is not closed.
Watching the price in the market gives the impression that there is a constant hunt for stops...
How can you make money here ?????
If you get the idea of "constant stop hunting", it means that your stops are not being placed correctly.
Stops should be knocked out exactly as much as they should be according to your TS.
A classic example - 70% of stops are knocked out when TP/SL = 3. As a result, on average, for 10 trades you have 7 losses and 9 profits. The net output is 20% of turnover. What kind of "hunting"?
If there are thoughts of "constantly hunting for stops", it means that the stops are not being placed correctly.
Stops should be knocked out exactly as much as they should be according to your TS.
A classic example - 70% of stops are knocked out when TP/SL = 3. As a result, on average, for 10 trades you have 7 losses and 9 profits. What kind of "hunting"?
You just don't need to put your stops too close. A stop is a hedge against force majeure: inattention, some unforeseen news, etc. A trade should be closed well before the price reaches the stop, according to the rules of strategy. For the same reason, profits should be set as far as possible, and close when there is a signal to close.
Of course, if the system is a scalper, the Profits and Stops can act as a "close". Although it is better to close by the market, and to place stops as "just in case".
You just don't need to put your stops too close. A stop is a hedge against force majeure: inattention, some unforeseen news, etc. A trade should be closed well before the price reaches the stop, according to the rules of strategy. For the same reason, profits should be set as far as possible, and close when there is a signal to close.
Of course, if the system is a scalper, the Profits and Stops can act as a "close". But it is better to close according to the market, while using stop profits "just in case".
Watching the price in the market gives the impression that there is a constant hunt for stops...
How can you make money here ?????
Practically not. A stop for a broker or broker is personal profit. The aggregate amount of clients' funds on stop-losses allows brokers to exist. 5% of traders get rich in the market and 95% go bankrupt. A broker is as much a market participant as a trader, but with a host of technical and other advantages. It's not that I believe that brokerage survives due to spread or commission charged for maintaining client's account. I understand that the spread or commission charged is a guaranteed additional fee in favor of the broker, which is equal from 0.1% to 2% of the total amount of money the broker collects from his personal"shop - market".
Taking any proven trading strategy, we see that they are profitable in their perspective. In fact the opposite is true. There is a huge propaganda campaign to attract new followers to the sect of this or that broker or brokerage firm. And, as is usual in sects - at the beginning they interest you, then you listen to them, they show you several times the alleged miracles of financial enrichment, then they create a crowd on the right and on the left shouting BELIEVE, you start shouting like the crowd, in order not to stand out. The next step is to carry the money savings (that you don't mind losing), then you carry what you have earned by applying your physical or mental strength (including loans), if you haven't run out of money or come to your senses, you give (transfer) your real estate to the broker sect.
There is always a small percentage of traders in the broker's cult that is maintained artificially to maintain the illusion that someone is making money on this type of trading. Where they all leaders (privateers) top traders either merged, or stopped in time. To get into successful traders, you have to have a temporary permission of the broker to take your profit, or agree that you are going to take something from the market, but not for everyone, but for a few units.
Most of the time they earn on the street and not in the market. They recruit and attract new adepts through education (paid seminars, closed training sessions, individual support). Naturally, they show the past achievements, which allowed the broker to do.
Those who have a profitable trade (it may be as one trader or a crowd of traders) will be tracked and if identified, immediately a red light on the remote control of the broker will be lit, a special alarm will sound (like a nuclear strike on the broker) until the total destruction of the broker. Measures (sanctions) of a deterrent-destructive nature are taken. It can be breaking of stops, spread widening, delaying of orders execution, and many other measures. The broker's arsenal has a lot of these measures for restraining or destroying, and they are being improved. The broker introduces new innovations into the trading process for the pseudo-trading process.
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Watching the price in the market gives the impression that there is a constant hunt for stops...
How to make money here ?????