How to avoid getting nabbed by stop hunters

:eek:
Who are you?..lol :smiley:

[B]Phil,[/B]

It’s even worse than you imagine.

Stop-hunting attacks are initiated and directed — not by a group of bankers — but by just one man! A very clever, very evil man. A professor of mathematical psychology in the U.K. named James Moriarty. Here is a brief description of the evil professor
by the man who knows him best:

[B]“He is the organiser of half that is evil and of nearly all that is undetected in London.
He is a genius, a philosopher, an abstract thinker. He has a brain of the first order.”[/B]

Sherlock Holmes, speaking of Professor James Moriarty, in ‘The Final Problem’

Moriarty has a very scary assistant named Igor, who is reputed to be the original source of the quote:

[B]“All your stop are belong to us!”[/B]

Don’t try to fight them, my friend. No one can prevail against Moriarty and Igor.

Clint

LOL! Hopefully you and I are the only ones around here geeky enough to get that joke… :smiley:

Er no you’re not …
:smiley:

Perhaps it should be “all your base [I]currencies[/I] are belong to us”

d-pip,

Thanks for telling us about this article. Since you’re almost (but not quite) able to post links, I will post a direct link to this article for you.

Click here for Boris Schlossberg’s latest article on stop-hunting: SFO Magazine Article

Your memory is correct, d-pip. I debated Schlossberg’s strategy with some very skeptical members of this forum, back in June. Scroll back to post #14 on THIS thread, and you will find a link to the thread where that debate took place, as well as a link to Schlossberg’s previous article, Stop-Hunting With The Big Players.

As for incorporating this stop-hunting strategy into the London Breakout Strategy (LBS), that could be done; but, in my view, it shouldn’t be done. The London Breakout Strategy is designed to be absolutely bare-bones, naked trading without frills. As long as it’s working, the LBS should be kept simple. When it ceases to work as intended, it should be abandoned, not cobbled together with some other strategy — IMNSHO.

Clint

Good one! — but, [I]currencies[/I] should be singular:

All your base currency are belong to us!

For those who don’t know what the heck we’re talking about, here’s a primer:

All your base are belong to us - Wikipedia, the free encyclopedia

CATS (I mean, Clint)

[B]Phil,[/B]

I quote from the study…
[I]SNB interventions are [U]conducted in the dealer market directly with foreign and domestic commercial banks[/U] operating in several Swiss cities.[/I]

Those involved foreign and commercial banks have advanced knowledge of a coming interventions. They are in fact the SNB trading desks during intervention excecuting the orders based on market exchange rates at that time.

At the same time those SNB Trading Desks are the [B][U]same[/U][/B] entities who are trading for their customers and their internal accounts.

Now what would be the most efficent way for those SNB Trading Desks to give themselves an advantage over their customers and uninformed traders…? Remembering this whole game is about nothing else than profits. :smiley:

I don’t see intervention and stophunting as the same thing. Stophunting is the intentional hunting of stops, not just intervention.

You can’t really separate the two. Intervention is about changing the direction of price expressed in PA. One of the techniques used in IB is stop hunting because that’s one of the most efficent ways to change the psychology of positioned traders. Lets say a Trader is short and get’s hit he is very likely to change sides and go long after he sees a long solid candle of let’s say 100 pips and growing by the second. Only for the sole reason to make up for his losses because he was the victim of a stophunt.

When I think of stophunting I picture a bunch of bankers in a meeting room pointing at charts and saying, “Okay guys, we believe there are a lot of stops placed here, so we need to drive the price up to there and trigger those stops!”

I think you’re very close to the truth with your above statement. :smiley:

I also picture them rubbing their hands together greedily and laughing

That’s not far off either. :smiley:

Please remember, global Central Banks want to make profits, too. :slight_smile:

Clint, you’re amazing. practically nobody else even knows the field of mathematical psychology even exists (did the tour, got the tee-shirt, scared the daylights out of me, circa 1960s), let alone how to put it in context.
:slight_smile:

[B]Let’s leave it that way, shall we?[/B]

J.M.

i think that’s a capitOl idea.

The idea is not that they make money from your individual trades, but as people place stops just above or below support/resistance, when these trigger it causes price to move more quickly in that direction, if enough stops are triggered the move can be 100+ pips on more volatile pairs, they then take profit and the price moves in the opposite direction, causing the spikes on charts. Also this technique is used to 'clear the market’
You know yourself, phil, that at the London open the increase in liquidity often blows stops as institutional traders push price around

No wonder the Swiss banks needed the government to bail them out. :smiley:
They made so much money in “Stop hunting” they could not take it anymore and almost went broke, just like the Swiss Airline, except they went broke and belong to Lufthansa.
Now I also understand why Mu’ammar al-Qaḏāf (Gadhaffi) wants to dissolve Switzerland and split them up to the rest of europe.
Darn greedy bankers, they just make to much money with there stop hunting strategy. Maybe we could feed them with as much gold as possible, so they would drown in there own money. tzzz tzzz tzzz :smiley:
ohhhhh, I forgot most CEO’s of big company’s in CH are german’s now. brrrrrrrrrrrrrrrrrrrrrrrr. :rolleyes: :eek:

I know I’m totally new to trading and all this but it seems to me it would be helpful if they had certain limits for those of us who are willing to take more of a risk from time to time. I know I’d be interested!