Combining Hidden and Broker-Submitted Stop Losses

Summary

The document explains why a broker-submitted stop loss may execute at a different price from the requested level. It attributes this to slippage: in the described ECN account setup, the broker closes the position at the first available price after the stop or take-profit level is reached. The realized loss or profit can therefore differ from the planned amount.

It presents a trading robot that adds a hidden stop loss alongside a regular stop loss. Traders can keep setting regular stops as usual, whether they trade manually or use other robots, then run this tool on a separate chart to manage positions. Its input sets the distance between the hidden and regular stops, measured in points rather than pips. The document does not explain how the hidden stop is executed, how it behaves during disconnections or fast markets, or whether it avoids slippage. It describes the tool’s intended setup, not tested performance or evidence that it improves outcomes.

Key ideas

• Broker-submitted stops may fill at a different price because of slippage.
• The tool is intended to manage positions using hidden and regular stop losses together.
• It can be run on a separate chart to manage positions opened manually or by robots.
• The distance setting is measured in points rather than pips.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.