Placing a Stop Loss Using a Trade Trigger / Conditional Order

[asomani]

I have heard that if one places a stop loss via a trade trigger / conditional order as opposed to via a conventional stop loss order, market makers will not be able to see at what price one should get stopped out at - because the conditions / triggers are not visible to them.

Can anyone confirm if this is correct?

If correct, it may be beneficial for Robot users to place their stop loss via a trade trigger / conditional order as opposed to via a conventional stop loss order - if not doing so already - just in case of the possibility of market makers seeing a pile of stops from Robot users on their screens at the same price level that they might then try to ambush.

More on conditional orders (some brokers call them trade triggers) can be found here (for IB clients, at least):
http://www.interactivebrokers.com/en...?ib_entity=llc

[roberto.giusto]

Just writing to remind robot/RT users of this interesting post by asomani.

We are certainly smaller than the market, but every attempt to "hide our hand" is appreciated, as stop fishing is a practice performed a lot by algos at least on an intraday basis.

It could be of no use, but implementing it doesn't require much effort either.

[Wei]

I wonder if market maker can see simple conditional orders like:
if IWM <=/>= xxx, execute IWM buy/sell @ market order
which is essentially the same as a stop loss order in disguise.

or maybe to make it more complicated, make the condition to be:
if IWM <= xxx AND SPY < 1000 (essentially some trigger always true)

Hope anyone with street experience can comment.

Just writing to remind robot/RT users of this interesting post by asomani.

We are certainly smaller than the market, but every attempt to "hide our hand" is appreciated, as stop fishing is a practice performed a lot by algos at least on an intraday basis.

It could be of no use, but implementing it doesn't require much effort either.