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NZDUSD spread widening

Hello, I have the darwin NZU. I’ve been just stopped.
3 stops in the NZDUSD have been triggered above the stop level. It had stops placed at 0.68833; 0.68748; and 0.68997. All three have been executed at 0.69146 when the maximum of the bar has been 0.68792 ( time bar 23:45, so 1h and 45’ previous of NZD, GDP news) I can understand that at this time the liquidity decreases and the spread increases, but 35 pips of spread is a huge spread, this is stop hunting.

Three profitable trades have been closed in losses, and with the consequent penalty in the profitability of my darwin. This is not fair Darwinex. This is stop hunting, 35 pips of spread is not fair!

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Hi @IIII,

Thanks for your message.

For specific cases you want to have reviewed, please contact info@darwinex.com, we can’t post here the relevant info as it contains sensitive information from your account.

That being said, while I do understand your frustration, please understand that it makes absolutely no sense to accuse us of hunting stops because we do not make any profit if you lose, so why on Earth would we be interested in hunting stops?

Further, the image below proves that yesterday there were VERY VOLATILE news releases affecting the NZD at 23:45 our MT4 time, so your message proves:

  1. You were not responsible enough to check the volatility of the assets you trade
  2. You don’t seem to take into account that an ECN broker has absolutely no interest in hunting your stops.

As a trader, I would recommend doing your homework before posting false accusations in a public forum.

Best,
Ignacio

4 Likes

I did my homework Ignacio. At the time at the time I writed , there was 23 minutes left if I remember well. I was whatching fxstreet at real time. So please, check it.
I don’t have an high level in English and maybe I don’t express well.I 'm not saying tht Darwinex is stop hunting, but with a 35 pips spread there is something wrong, maybe with your provider.

Dear @IIII,

My colleagues in the Operations Team will review your case and send the ASK and BID data + the execution speed via email. You are more than welcome to publicly share their reply here if you like.

Best,
Ignacio

Useful info, happy to be a non NZD trader!
35 pips could kill also an always-on swing trading strategy.

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That can happen on all minors, especially in the next 5 months

I expect the darwinex platform to have a price lag or jump before closing, and do not let me choose darwinex again to lose confidence in the platform.

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Sorry, I don’t understand your message. Could you please elaborate?

Ty!

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Why did the 19 point drop let me stop at 0.69189 ?

Now I’m at home ( I answered the previous reply with my mobile phone), so I can elaborate a more accurate reply.

First, I want to make a clarification. Mi first post with the title “stop hunting” was not very fortunate. Ignacio, I don’t think Darwinex is “stop hunting” his own clients, and It wasn’t my intention to accuse Darwinex of this. My intention was to expose something that is not working well with your liquidity provider. I understand that Darwinex is the broker, and then there is a liquidity provider also, I can understand that between the US close, and Asia open, there is less liquidity especially if there is some news announcement, and especially around 22:00 GMT, but Ignacio, a 35 pips spread is too much.

Second, of course, I do my homework, and I always have a close attention to any important news. Ignacio, if you check the NZDUSD chart (15 min), you will see that “the spike” was at 23:45 (platform hour), that is 20:45 GMT. The NZD GDP news was released at 22:45 GMT.

I’m sure Darwinex is a good broker, but if we have this liquidity issues with no news, then, we have a problem, it doesn’t matter if is a liquidity problem or stop hunting, 35 pips spread with no news cannot be acceptable.

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Why in the next 5 months?

I also expect an increase of the volatility in the following months, because of the trade war and because I think we are in the final stages of the cycle.

What are your reasons?

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I closed my Darwins about a year ago because of the unpredictable moves. Third quarter was hard and the profit situation of the LPs is worse than in the other quarters because of lower volumes, as far as I remember it. Lower volumes make sharper moves easier for market makers.

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Yes, you got caught in a new day “roll over” stop hunt. This is a regularly occurring event that needs to be taken into account in our trades. It’s also why I don’t hold trades through this time. The spread won’t be this excessive every day but at least once a week I find. A true ECN broker will pass these spreads from the liquidity providers on to us, nothing we can do, My suggestion is to book profits/loss 15 minutes before the end of day or put on a hedge with no TP/SL on either side.

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EOD noise and bad spreads is normal but 35 pips is HUGE .

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I’m totally agree with you Cavaliere.

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Again, something strange has happened at odd hours with this pair.

My stop loss were triggered 45 above the price. This spike doesn’t exist with another broker I have.

What is happening with this pair? The same issue in a short period of time.

Trading is difficult but is a lot difficult with strange things like this.

This is a chart from an other broker I have. As you can see, there isn’t the spike here:

Again, a huge increase of the spread, and again, my positions has been stopped. I’m going to stop trading NZDUSD

!!!