Hi All

I am becoming very disillusioned with foreign exchange trading and this is why.
I have spent the last 12 months learning and trading FX I have had 3 years previous experience successfully trading shares and felt FX is a lower cost and more lucrative way of trading for income.
I have spent many hours demo trading, forward testing and back testing the system that I recently implemented.
It had a good success rate and a good RR ratio thats why I began trading it.

All the trades I have placed have seemed to have hunted down my stop losses and immediately moved in the direction I predicted it would AFTER my stop loss was hit.

I am having serious doubts about the integrity of my forex broker (GO Markets Australia) they claim to have no dealing desk and no intervention.
I know there is a difference between demo and live accounts but what I have seen on my trades is ridiculous. Here is the condition for trade entry if someone can tell me if there is something fundamentally wrong with this I would be pleased to hear any feedback.

-I trade on the 4 hour chart.
-I use the MTF Bollinger Signal to alert me to a possible trade.
-Then wait for the Forexoma MACD (12,26,0) to changed colour and descending (short) ascending (long)
-I also ensure the RSI (5) is heading in the direction of my trade.
-I use just below the Bollinger band middle as my TP1 (then move stop to breakeven)Where I sell half my position. I use just below the Bollinger band upper as my TP2.
- My initial stop loss is below the previous low point where there is a short term trend change.(usually below the BBB)
- I do not enter if there is a large candle prior to entry.
- I also plot support and resistance lines on the 4 hour chart and the daily chart and do not take trades where these lines are between either of my TP points.
-I also do not trade if there is any news soon to be released.
-I also only trade in the direction of the daily trend.

I took Vahids trade on the 7.12.09 AUDJPY (long) I also had a sell signal on my
System (short). GUESS WHICH WAY THE TRADE WENT. I took vahids trade as he has much more experience than me.
I wonder if I had taken MY signal would it have hunted the stop loss first then headed down.
When I can i will place trades without entering my stop loss and monitor the trade carefully and see if there is a difference.
I know there are many stories like mine out there. Lucky its only play money.

Dave

...DrPal
I will be spreading the bad fame about these crooks as much as possible.
They soon will realise their sins and soon after hopefuly go bankrupt

Hi Dave,

May I make a suggestion? Maybe you should start a journal on the forum. Post your setups and your anticipated trades. Clearly define why you would take the trades you propose, why the entry, why the stop, the exit, the profit etc...

For now, we must take your word for everything you say. Sounds to me that your "system" needs some tuning.

Here we have all been introduced to the method of trading using Support/Resistance breakouts. I did not read anything in your post about that. Might be a good idea for you to fully absorb all of the forexoma articles, and only take the trades Vahid recommends, being careful to fully understand why the signal is being given. Learn from the teacher first, then you can adopt the strategy to your own liking. Are you a member of the service? you must be, you said you used one of Vahid's signals. Since you are trading demo, you have no concern about the money right now. Fully understand Vahid's analysis and signals, then try to duplicate his methods on your own. Believe me, there are many trades Vahid does not send signals for which follow his principles, and a good eye will spot them.

Be careful of judging yourself too quickly. You are at a stage. It will pass with dedication and hard work.

Finally, as to your broker hunting your stops. That's an easy one - Get a new broker!

Vincent

Hi,

What's the MTF bollinger signal?
It would really help if you posted a chart with an example of one of your trades as it's a little difficult to follow your strategy.
The phenomena of price just hitting your stoploss happens to all of us. You tend to think that the price is out to get you, but actually you are placing your stoploss too tight. Remember that thousands or even millions of traders are looking at the same charts and coming to the same decisions re placing stoplosses. Most make the mistake of trying to limit the possible losses by using a too small stoploss.
What happens when all these stops are triggered at the same time? - the price reverses.

Please post a chart with an example of how you place the stop. If so many trades are reversing and would have made profit after hitting your stop, you must be doing something right.

Keith

Hi Dave

You should consider opening a demo account with FXPro as well https://www.fxpro.com/. Then you will have access to independent charts and can see if they differ from your own broker.

All the best

Michael

Hi Dave - have you read Vahid's article in the Learn More section about Stop Loss and Limit Orders?
For some background information the posts under the following link are worth reading (I am aware that you may already be familiar with all of this so bear with me):

http://www.forexfactory.com/showthread.php?t=7484

The only way is to check your broker out and do what Michael suggests.

As your using a demo account and as it is only play money for the moment and if you are convinced that your broker is running your stops then turn this to your advantage by placing buy/sell orders instead of stop losses and you will be snapped up into the direction of your initial trade and have a better average price.



That way you can place your stop loss after the broker has done his stop run and there is a much higher probability that your stop loss won't be hit.

You may like the following passage quoted from Chapter 16 - All About Stops, from the book Beat the Forex Dealer by Agustin Silvani:

"Does active stop running really take place? Of course it does! Dealers are as much information peddlers as they are price quoters, and every dealing desk has their partners in crime: either important clients or other friendly desks to whom they communicate their client's positions and stops. Stop hunting takes place all day, every day, and there are some prop desks that actually specialize in stop hunting for stops for short term gains. Sometimes no communication is needed, since dealers know that Joe Trader places his stops at such obvious levels that they become perfect targets."

By the way I am sure the Joe Trader mentioned above is not the one who posts on this discussion board.

All the best,
aquiagora