Lol - I wasn’t suggesting he didn’t but I have right to question/discuss
The strategy specifically states using the 200SMA so as it moves through 1.6, as an example, you would then target 1.59, 1.58, 1.57, 1.56, etc.
I’m just suggesting that if this is psychology based and that the “rounder” numbers are more ingrained and likely to have more stops 1.6, 1.5, etc. then maybe we could target those on lots of different pairs?
Schlossberg didn’t say this, but I think it’s obvious that 1.x000 is a more important round number than 1.xx00. And I think it’s probably true that 1.x500 is a more important number than 1.x400, or 1.x600.
He also specifically states a multiple trades option, which just doesn’t sound right. I mean once the stops have been hit in the region why would you go again? Too risky that it might bounce, no?
Worked nicely on this one for 15pips + 30pips. On reaching 0.8, it shot up by 5 pips much quicker than the recent 30mins activity. I trailed the 2nd lot but it hit its 30TP anyway. Not bad.
Clint
Been discussing this on some of the other forums and the general consensus, even from experienced traders, was that people don’t put their stops at round numbers anymore. Any big player knows that’s a stupid thing to do.
What are your thoughts?
I’m pretty sure as soon as price hit 0.8 on the AUDUSD today it jumped 5 pips uncharacteristic of the last 10pip movement up to that point, which would suggest there were stops there but who’s to know.
I can see the strategy being split into 2 which is that the market will most definitely test the price, which is the first 15 pips. If it hits stops and pushes through then you pick up the 30 pips from the 2nd part of the strategy.
I’m quite willing to try this as even looking back through the charts it seems it works.
As one of the arguments against was when the Euro came near 1.6 in April 2008, price was all over the place.
We are not the big players though, our stops don’t move the market at all, not even as a collective retail trade unless the brokers are passing on our trades to market. And no, I never place stops that close to a psych line, it would be at least 20pips and that’s if I was going to place a stop and not close it out manually.
A stop hunting strategy relies upon hitting some stops at that level which are for some extremely big monetary amount and the counter argument against this strategy is that no professional in their right mind would place a stop at 000.
Doesn’t mean I won’t try the strategy but a lot of people are questioning the validity.
