Interesting what you're talking about. So the solution would be to operate as a "contrary" to the general pattern? Wait for the signal and do the opposite?
Interesting what you're talking about. So the solution would be to operate as a "contrary" to the general pattern? Wait for the signal and do the opposite?
Not necessarily do the opposite, but avoid entering just when everyone does. A strategic delay can make a difference.
Sometimes I get the impression that brokers market makers even see your stop loss and push it. I’ve already had it three times with USDCHF.
Well, if you think your broker manipulates you, switch to a real ECN.
In the end, the secret is not to avoid manipulation, but to know how to dance with it.
I have read carefully all the thread and want to provide a more technical perspective on why it seems that the market turns right when we place an order. This has a lot to do with the liquidity structure and how institutional participants, like banks and funds, manage their positions in highly liquid markets like the Forex. The market is not "seeing" our individual orders, but it acts according to zones where liquidity is concentrated. And guess where that liquidity is: right where retail traders place their stop loss and orders pending. The big operators need counterparts for their mass positions. When they see accumulation of orders at certain levels, they generate price movements that act as a magnet towards those points. This is called "stop hunting" or stop-shop hunting, and it is a real practice even if it is personal. The algorithm does not need to know who you are, it just needs to detect where the market is easier to sweep and absorb. It is pure logic of flow of orders. That is why the price breaks a support, skips all stops, and then it is turned around in the same area.
Thank you for the analysis, brutal. This does bring real value.
Very well explained, although I still do not trust that there is no direct manipulation by some brokers.
Interesting approach, I'm going to test it with my current strategy.
Okay, but that's theory, in practice it's frustrating that every entry ends up in a sweep.
Posting Permissions
Reply With Quote