There is a thread here at FF where previous and past institutional traders talk about trading for the big banks. Some of the things they do and how they trade. It is why there is a crowd here at FF who are vicious in attacking us who have figured it out. Go read the thread if you dont believe me.
Now do you understand why I use large SL or none at all? Why I try to follow the long term trend and stay out of the slaughter houses? Here is the confession of an institutional trader when they see your stops or even if you hide your stops they still will get you from everyone else who places them. I love this stuff.
http://www.forexfactory.com/showthread.php?t=486128
This is what I do when I see other people's stops: I run them.
When I run stops, I don't use stops on those runs, because my targets are usually less than say 20 pips for a short term kill. Some guys go for more, I guess I'm not that greedy. I do use mental stops however in case my runs go sour. That takes discipline which the Banks pay me big bucks for.
When I run stops, trend direction is always at the back of my mind, but not a factor because, as I've implied, my targets are very short term. I don't use technical tools other than my own eyes and price action on the screen.
Now do you understand why I use large SL or none at all? Why I try to follow the long term trend and stay out of the slaughter houses? Here is the confession of an institutional trader when they see your stops or even if you hide your stops they still will get you from everyone else who places them. I love this stuff.
http://www.forexfactory.com/showthread.php?t=486128
This is what I do when I see other people's stops: I run them.
When I run stops, I don't use stops on those runs, because my targets are usually less than say 20 pips for a short term kill. Some guys go for more, I guess I'm not that greedy. I do use mental stops however in case my runs go sour. That takes discipline which the Banks pay me big bucks for.
When I run stops, trend direction is always at the back of my mind, but not a factor because, as I've implied, my targets are very short term. I don't use technical tools other than my own eyes and price action on the screen.