Trading like "submarine-hunting"? Who did it?

Last days when i saw the movie "The hunt for Red October"an trading idea came to my mind, i am curious wether someone has done it allready or maybe this is a common strategy and i just didnt know it so far:

When you hunt submarines from a destroyer-ship, you also dont know allways where the target is exactly- so you drop “water-bombs” more or less randomly in a certain area on the sea-surface, and after they merged you wait untill there is a “big bang” and parts of a former submarine appear on the surface… :laughing:

In trading droping" water-bombs" would be setting a large number of pending orders with just one or two pip TP and one pip SL in areas where someone expects that the price will move around, like above or below reistance areas speculating on a trendy price move sooner or later, which may also turn back and so on - you just hope, that more bombs hit the target (TP) than explode for nothing (SL)

Has anybody did it so far?

Yes some people use this technique. Called ‘stacking’.

Its a technique more used in the smallcap stock market than in forex. The idea is you take small positions in multiple small companies which are below the institutional radar and which are in a sector which is prone to dramatic positive news. A decent example would be oil drillers or miners - one good strike and they’re suddenly on everyone’s buy list. The few good buys pay for all those that do nothing and hopefully very few should lose badly.


Thats what i mean - i took three pending longs and three shorts, (demo) one pip TP, one pip SL, a narrow range, lets see what will happen next hours… :cowboy_hat_face:

Interesting - i think that reflects more or less what i mean

I did not do this within a trading context, but it forms one of my strategies in my 2021 crypto investment. I have referred to it as my “sh__coin” strategy. I have chosen three tiers of sh__coins, the total of which will equate to approximately 20% of our total crypto portfolio value. The first tier defines tokens that have a potential to generate a 10X return over 3 years. The second tier defines tokens that have a potential to generate a 100X return over 3 years and the third tier defines those that could achieve a 1000X.

To date, I have invested in one sh__coin in the 100X category, and have identified another 3 for further analysis but no action to date. To date, funds at risk are 1.3% of crypto portfolio. My wife spends more money in a year on lottery tickets than I have invested in sh__coins to date, so it is not a get rich quick scheme by any stretch of the imagination. Before I settled on this idea, I read an extensive article about the same subject matter that the author had done in 2017 and was revieiwing his results after 4 years. His “hit rate” was an enviable 27%, but his goals were differently defined. My target hit rate is 10%.

It sounds like a totally nuts approach to me.

It likely works in the small-cap stock sector as @tommor alluded to. But the small-cap sector doesn’t use leverage, although volatile, you can wait it out.

I think it would be disastrous when using leverage myself. That said I guess anything can be made to be profitable with correct money management.

If you want to use analogies, rather than carpet-bombing why not employ the sniper approach?

Or (as I am a cat nut) why not use the cheetah approach? Lie around all day, watching a herd of antelope - then choose the slowest weakest one. As the fastest mammal on earth, you are sure to get a decent hit rate.