I recently saw an Interview of Nikhil Kamath , Nithin Kamath’s younger brother.
He said using a stop loss is a prudent decision but comes with its own disadvantage of the possibility of sophisticated algos taking out your stop loss order before the market changes direction.
So is it true , Stop loss hunting does exist and is an active strategy used at the institution level?
If yes , then how can we avoid it?
If no , then why all the confusion built around this myth of stop loss hunting?