Stop-Loss Hunting

Anyone who has dabbled in leverage trading has likely realized the importance of setting the correct stop-loss for their open positions. More often than not, traders will set their stop-loss to trigger when the most advantageous of trades begins to show signs of weakness. Though this is technically correct, it leaves traders vulnerable to stop loss hunting. In this article, we will take a close look at stop-loss hunting, and how it can dramatically change the price action of an asset, at a moments notice.

What is Stop-Loss Hunting?

Stop-loss hunting is essentially market manipulation, instigated by high-level investors who possess a great enough amount of an asset to effectively increase or decrease its value by initiating a large enough buy or sell order. If a large enough sell order for a particular asset is initiated by a high-level investor or “Whale”, the price of that asset will respectively lose value. Stop-loss hunters intend for the value of an asset to decrease enough to trigger the stop losses set by market traders. This creates a dramatic price drop, which the whales immediately take advantage of. The whales repurchase the asset which they intentionally devalued, at a lower price. This results in the whales gaining more of whichever asset they initially devalued by stop-loss hunting.

Stop-loss hunting is not necessarily dependent on bullish or bearish markets; however, it is more prevalent during times of weak price action. This is because it is easier for all traders to accumulate assets during bearish conditions. Although stop-loss hunting is perpetually intrinsic in all trading markets, certain behaviors leave retail traders more vulnerable to stop loss hunting. This can be easily avoided by using Killer Whale products.

Killer Whale Keeps Position Sizes Proper

Killer Whale keeps position sizes manageable. Regardless of which Killer Kale products you use, you can rest assured that your positions are appropriately sized. This is all made possible by Killer Whale Templates ! Currently, Killer Whale only utilizes spot-trading practices, which are indifferent to stop-loss hunting! If you are looking for more gains than pains, Killer Whale is right for you! If you haven’t checked it out yet, look at Killer Whale Large Cap Sector Strategy !

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