Are retail stop loss orders actively hunted by algos on bse /nse?

The books I read says it is done by big traders. Many a times a support is broken with good volume and price bounce back immediately, kind of stop hunting. However this stop hunting activity also provides opportunity to the trader. Wait for stop hunting and if it reverses enter with the sharks.

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I’ve seen a bit of talk around SL being ‘hunted’ etc. However, no one has actually proved it to me with a reasonable logic and conviction that such a thing as ‘SL hunting’ exists. Hence I believe this to be a myth.

In fact I sometimes feel, traders who lose money need a reason to blame someone for their losses (you know they hardly blame themselves for their own losses)…so they end up creating an algo in their mind whose job is to ensure ‘they hunt and smoke out the stoploss’ :slight_smile:

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Ed, tks for ur comment. Also it would be interesting to know if exchanges or brokers sell order flow information to select clients (read Strong hands) who can then trade on that and shake out the retail guys (weak hands.)

NSE Level2 and Leve3 feeds, costly

Well. Yes and No. Areas of support where one would logically tested , and where most retail would place their stop loss , will get hit when they are tested… And then some also have this mindset that some so called “operator” is gng to target my SL. I dont think it is a myth but it is not as prevalent as ppl think it to be. And the reasons why SL are hit are diff.