What is stop loss hunting ??

iCorn

Private
Messages
21
Hello , can someone explain to me what is stop loss hunting in simplest form of explaination ? Is it a good things or bad ? I got signal from my broker in which most of my position with only (T/P) will have the situation like in the picture attached . And each position profited like about 200 pips. Each trade is about 30-50 minutes Long and at the end of the position trading , my position will always close immediately without touching the (S/L) or (T/P) but also profited .
Many thanks !!
 

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Farm_Yard_Forex

Corporal
Messages
115
Not sure it is related to the pic but stop loss hunting is normally what the banks do to a market on the back of news or at a technical level. Essentially most traders will see a level and think that they should enter a trade and place their SL typically where it is deemed safe or at a level that makes the trade null. The banks might then force the price up to that level, often to the pip to take out retail trader SLs and fill more orders before the trade goes the way the retail traders expected having been stopped out.
 

iCorn

Private
Messages
21
Not sure it is related to the pic but stop loss hunting is normally what the banks do to a market on the back of news or at a technical level. Essentially most traders will see a level and think that they should enter a trade and place their SL typically where it is deemed safe or at a level that makes the trade null. The banks might then force the price up to that level, often to the pip to take out retail trader SLs and fill more orders before the trade goes the way the retail traders expected having been stopped out.


I see .So meaning that it often happens or it is not normal ? Because whenever I received a signal from the provider , they always provide me with T/P signal. no SLs signal most of the trade . And while in the middle of trading , the chart will always going spike up or falling drastically in a straight line. and then viceversa movement after that . You know it’s sort of making a U shape on a chart . I had never see a straight line before . Someone has told me it’s maybe a broker problem of pricing errors . I don’t know what they mean . And I can guarantee most of the time I’m profit .
 

compu-forex

Sergeant
Messages
149
Someone has told me it’s maybe a broker problem of pricing errors . I don’t know what they mean . And I can guarantee most of the time I’m profit .
That would have been me. I suggest you compare this chart with the same chart at a different broker. If they are the same then you can possible accept this as an anomaly. If they are different then it is quite possible the broker has experienced a technical glitch and streamed some incorrect prices to your platform. You can see where the price went wrong and then subsequently corrected after several bars.

My money is still on a pricing error. Retail forex is a fickle game and subject to technical glitches from time to time. I am less convinced about the stop-hunting.
 

ForexTus

Sergeant
Messages
128
Smart money and banks sweep below a low or a high in order to hit your stop loss and take your money. Then the market continues in the direction it had been already going
 

iCorn

Private
Messages
21
That would have been me. I suggest you compare this chart with the same chart at a different broker. If they are the same then you can possible accept this as an anomaly. If they are different then it is quite possible the broker has experienced a technical glitch and streamed some incorrect prices to your platform. You can see where the price went wrong and then subsequently corrected after several bars.

My money is still on a pricing error. Retail forex is a fickle game and subject to technical glitches from time to time. I am less convinced about the stop-hunting.

Thank you . If they’re to insert incorrect prices meaning all these trading are fake ? I using mt4 on this broker platform to do trading and from time to time I will always compare it with the mt5 chart . Initially both are on the same chart but as soon as I hit open position with the given signal , the chart will start to go normal at first then starts going towards the given T/P . Most of the time it just randomly ended the position and then profited . When you look at the chart it rises or failing spontaneously in a straight line . BUT in the mt5 it is not the same .
 

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compu-forex

Sergeant
Messages
149
Thank you . If they’re to insert incorrect prices meaning all these trading are fake ? I using mt4 on this broker platform to do trading and from time to time I will always compare it with the mt5 chart . Initially both are on the same chart but as soon as I hit open position with the given signal , the chart will start to go normal at first then starts going towards the given T/P . Most of the time it just randomly ended the position and then profited . When you look at the chart it rises or failing spontaneously in a straight line . BUT in the mt5 it is not the same .
No I wouldn't say fake. You can imagine many many brokers offer MT4 and they plug all sorts of liquidity providers in to their system. It can be a highly complex setup and was not designed like that to start with so you should not be surprised that there are errors from time to time.

Is this an ongoing issue or was it just a one off event?
 

iCorn

Private
Messages
21
No I wouldn't say fake. You can imagine many many brokers offer MT4 and they plug all sorts of liquidity providers in to their system. It can be a highly complex setup and was not designed like that to start with so you should not be surprised that there are errors from time to time.

Is this an ongoing issue or was it just a one off event?

Almost every trade . Each trade signal comes with only given T/P . I deposited $1000 one month ago and now I have nearly $18k . Each trade is at least 4 lot to 5 lot of position . Too bad I couldn’t attach any video recording or else you will see it spike up and down in a straight line towards T/P in less than 3 seconds .
 

Tahntaman

Private, 1st Class
Messages
41
To trade with Stop Loss hunting, you need to trade like everyone else, but to have a different strategy of profit extraction, the element of which is the triggering of other people's Stop Losses. To do this, you need to be able to make a single price shift in the market by at least a few points. To be such a hunter, you need to be a big trader, playing against smaller players, or a big speculator with the necessary capital.
 

JamesEdwards98

Private
Messages
85
Hello , can someone explain to me what is stop loss hunting in simplest form of explaination ? Is it a good things or bad ? I got signal from my broker in which most of my position with only (T/P) will have the situation like in the picture attached . And each position profited like about 200 pips. Each trade is about 30-50 minutes Long and at the end of the position trading , my position will always close immediately without touching the (S/L) or (T/P) but also profited .
Many thanks !!
No such thing. If you trade like a retail trader, there will be stop hunts. Look into Smart Money Concepts..
 
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