Is there any chance?

Discussion in 'Trading' started by trader1974, Feb 20, 2022.

  1. trader1974

    trader1974

    If the market maker moves the price to execute stops?
     
  2. Robert Morse

    Robert Morse Sponsor

    What asset class?
     
    trader1974 likes this.
  3. tiddlywinks

    tiddlywinks

    trader1974 likes this.
  4. mikeriley

    mikeriley

    The only thing "certain" about trading, is that
    there is nothing certain. My left brain
    strives to find it, while my right brain keeps
    me balanced through the process.
     
    trader1974, Leob and smallfil like this.
  5. Snuskpelle

    Snuskpelle

    In shit CFD platforms maybe.

    But consider this, regular market participants might be unknowingly do that as well. If you develop and then act according to a rule:

    Certain price conditions => A certain large enough mean return over a particular hold duration => Go long/short, i.e. same sign as return for that duration

    And if turns out the underlying return driver is actually retail stops being hit, then you might not even know about the cause, but your algo is contributing to "stop hunting".

    At the end of the day, concern yourself with whether you are profitable, not blaming the market [if we're not talking about scammy platforms].
     
  6. trader1974

    trader1974

    Futures
     
  7. trader1974

    trader1974

    Thanks Tiddlewinks, it's very interesting
     
  8. Robert Morse

    Robert Morse Sponsor

    CME Futures Stop orders are held on their servers. A MM would not have access to those orders.

     
  9. Bugsy

    Bugsy

    Kind of reminds me of the old saying, "Markets can stay irrational longer than you can stay solvent."
     
    mikeriley likes this.
  10. Nobert

    Nobert

    In YT channel UkSpreadBetting search stop loss hunting, an old pro tells everything.
    Most recent example - UVE.

    Good buy, btw.
     
    #10     Feb 21, 2022