Projekt Fear! | Traders Hideout - futures trading strategies, market news, trading charts and platforms

Traders Hideout

Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons


Projekt Fear!

  #7 (permalink)

Super Moderator
London UK
Trading Experience: Beginner
Platform: CQG
Broker/Data: S5
Favorite Futures: Futures
xplorer's Avatar
Posts: 4,820 since Sep 2015
Thanks: 11,871 given, 10,520 received

DionysusToast View Post
Here's the thing....

It wouldn't matter if people could see your stops or not. Unless you are trading 1000's of contracts a clip.

If you step back and have a think about what a stop order is (as related to exiting a position).

- It's an order to buy ABOVE current prices
- It's an order to sell BELOW current prices

Let's say you were selling oranges. You were in a market where all the other stalls sold oranges for $5 a kilo. If the customers walk to your stall, they pay $3 a kilo. Will people be inclined to buy at $5/kilo or will they pass those deals and pay $3?

Or another way to look at it. If you had a good idea where stops were and only ever entered the market at those advantageous prices - what would be the outcome?

If there is a ton of sell stops below us and we wanted to buy - isn't there an incentive for us to wait for those better prices before buying.

So when a market hits an area with a lot of stops - was it manipulation or just markets doing what markets do best?

If you trade 3 lots, then you aren't going to get stop hunted, it would not matter where you put your stop - it would not be worth the effort to run those stops. If, on the other hand, you put your stops where there's already another 5000 stops - that's a different matter entirely.

Yes, completely agree on this. I wrote another post months ago to this effect. Whether someone is stop hunting or not to us retail traders it does not matter. Whomever would have the capacity to stop-hunt wouldn't be certainly after me.

Reply With Quote
The following user says Thank You to xplorer for this post: