Stop Hunting – They’re Smart Fuckers

I’ve been having the frustratingly, hair-pulling, profanity-inducing problem of having my stops “tapped” and taking off so frequently in the past few weeks that I wanted to make a post on it.  This blog is pretty new so nobody is even reading except for myself but I need to get this off my chest.   I’ve added a few charts that are only from the past 2 days.  I could attach days worth of these.  No lie.  And before you call me a pansy, or that I’m such an amateur, I’d like to tell you to eat a turd.

I’ve traded futures, I currently swing trade stocks and now I day trade Forex with real money.  Never have I experienced this kind of frustration over having my stop hit and take off.  Trading the ES, usually my stop losses were good stops.  When they were hit, it saved my back or at least was broken by a few more ticks before maybe going back in my intended direction.  Fair enough.  When I swing trade stocks, usually when my stops are hit, they’re pretty good indicators at telling me I made a wrong read of the market.  Once in a while, it’ll be a sort of stop hunt but I think more coincidence.  With Forex, it’s a whole different story.

stop-hunt-3
Beautiful.  It’s almost creeping up just hunting each and every retail stop order.  Stopped out exactly at the top of this pullback before it takes the fuck off.

I have kept track of and calculated my trades over the past month – wins, losses and losses where the stop was hit within 1 pip and ended up hitting my original target.

Wait until you hear this.  

So for the previous month I have made a tiny profit with 50% winning trades.  14 wins.  14 losses.  5 scratch trades (less than 2 pips profit).  Here it comes…. wait for it…. wait for it…..

7 of those losses were stop taps and go.  Let me say that again.  Of my 14 losing trades, half of them, 50%, had the stops hit within 1 pip of where I set them and took off in my originally intended direction and hit my target.  WOW.

How do I know they were stop hunts?  Because after finding a pocket of buy/sell orders, the prices SURGE.  I mean take the fuck off.  It’s not like my stops are hit and prices dilly dally upwards/downwards for a few minutes and oscillate around and make a smooth transition until my target is hit.  I’m saying these fuckheads find the pockets of liquidity, run prices down or up to them, hit the stops and then just dump their orders in creating a huge surge.

stop-hunt-2
Far right edge of the screen (red line).  Stopped out at the peak of the pullback before it… you guessed it.  Takes the fuck off.

I’d be a very profitable trader right now if it weren’t for those stop hunts.  But rather than feel sorry for myself, I’ve got to come up with a way to trade with it.  It’s the biggest wall I’m facing right now to becoming a consistently profitable trader.

stop-hunt-1
Going long now. I thought that bar to the left of my entry was the stop hunting one.  Nope.  I I enter.  It stops me out to the fucking pip, and?  TAKES THE FUCK OFF.

Does that not raise any eyebrows?  Is this a coincidence that prices just seem to tap my stop and have a huge surge right after?  I think absofuckinglutely not.  So I did some digging.

Here is a video that makes a lot of sense.

If anyone is reading, please give it a watch.

So, I need to formulate entries or something to ride these big surges.  I’m tired of getting bent over by these dildos working at the banks and funds.  I know the type too because I used to work at one.  “I drive a beemer, bro.  See this?  Tag Heuer Carerra.  And my dad’s having us over this weekend for a bbq so we can wear polo shirts tucked into our Banana Republic douche-a-roonie shorts and drink shitty European beer.” Yeah if you’re sitting there reading this asking yourself “what’s wrong with driving a Beemer? Or Banana Republic…. He’s just jealous.”  Yeah you’re a circle jerker.  Fuck.

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